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17 November 2017

Our friend electric?

As Tesla reveals its groundbreaking new electric truck, Tom Dawson, investment manager at investment management and stockbroking firm Redmayne-Bentley, looks at its impact on transport and the global oil industry.
 
“Tesla chief executive Elon Musk has unveiled the new fully-electric Semi truck, which is set to disrupt freight, HGV and public transport vehicles in a way similar to how the Model S and Model X, and shortly the Model 3, have disrupted the comfortable cabal of the world’s top car manufacturers. 
 
“Tesla already has orders for the Semi. The company has not divulged how many, but the benefits in terms of safety, maintenance cost and local environmental friendliness are clear. The future is here to benefit us all, with Mr Musk hoping the lion’s share of the gains flows to Tesla investors. 
 
“The impact of the Semi truck will be felt more broadly than ‘just’ the air we breathe and the vehicles we see on the road. Around 36 per cent of global refined oil is used in gasoline, petrol and diesel car engines, and a further 18 per cent is used by diesel and HGV vehicles.  OPEC and oil industry analysts forecast global demand for oil to increase and supply to decrease, and hence gentle oil price gains over time. However, to date, they have made no allowance for the potential of HGV vehicles becoming electric. They have made allowances for electric cars, but with the pace of development seemingly leapfrogging optimistic forecasts, their allowance may ultimately prove too positive on oil-posing problems for petrochemical economies such as Russia and the Middle Eastern states, and positive for western more consumer centric economies.”
 
This article is for information only and does not constitute a recommendation to invest in shares in Tesla.
 
Our friend electric?
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