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Tesla: How Elon Musk Sees The Oil Crisis

Tesla’s CEO Elon Musk has chimed in on the Russia-Ukraine conflict and the ensuing energy crisis. Here are some of his most interesting takes on Twitter.

Over the past weekend, crude oil prices reached highs not seen since 2008. Faced with WTI at $120 per barrel, electric vehicle maker Tesla’s  (TSLA) - Get Tesla Inc. Report CEO Elon Musk chimed in on the current crisis. Some of his thoughts may have surprised some.

Today, Wall Street Memes reviews Mr. Musk’s most recent Twitter takes on oil, nuclear energy, and national security.

Figure 1: Tesla: How Elon Musk Sees The Oil Crisis

Figure 1: Tesla: How Elon Musk Sees The Oil Crisis

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Musk’s views on energy

Perhaps Elon Musk’s most off-brand comment, tweeted at the start of the weekend, was the following:

The CEO completed his thought by saying that the move would be a negative for Tesla, probably the most valuable company in the world to have an interest in the energy revolution. But, he concluded, “sustainable energy solutions simply cannot react instantaneously to make up for Russian oil and gas exports”.

Clearly, Elon Musk differentiates between the short-term and long-term approaches to solving the current energy crisis. He is probably right that energy policy needs to deviate from what most would consider the ideal path forward to address pressing issues of the moment.

Elon went further on the argument and proposed what sounds like a medium-term solution to the world’s dependence on crude oil today. Here is his tweet about nuclear energy:

He went on to argue that radiation risk, a potential pushback to his proposal above, is an overblown concern. His quote: “pick what you think is the worst location; I will travel there and eat locally grown food on TV.”

These risks of running a nuclear power program came to the forefront in the past few days. Russian forces have taken over two of Ukraine’s four plants. One of them came under attack and burned for a few hours, late last week.

Elon Musk wrapped up by seemingly suggesting that better traffic management can and should be part of the solution over time. His tweet:

Maybe this is the “ultimate boss battle”, as Elon himself described. Through self-driving technology and the use of better AI, traffic can become much more efficient — both from a natural resource- and time-consumption perspectives.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)