Tesla Made More Money Last Quarter than the Entire US Oil Industry Made Last Year
Here’s another wonderful article that supports the raw truth about the obsolescence of fossil fuels. The world goes where the money is, and it’s in cleantech. Trump and his cronies can prop up the oil industry, but they can’t do it forever.
Patriotic Americans need to realize one very important thing: The strength of the U.S. economy over the coming decades will be tightly correlated to its embrace of cleantech, the defining industry of the 21st Century.
Craig,
What’s wonderful about the article, is it manages to publish complete fiction passed off as fact, to a gullible and eager audience to lazy to simply check the earnings, profits and dividends paid by the major oil companies.
While it’s true that over-supply and low prices provide difficult conditions for oil and gas producers, the major oil companies are far from unprofitable.
Oversupply has been created by overproduction, not a reduction in demand. That’s where the logic of the author goes astray. Tesla hasn’t captured 50% of the market, making oil less desirable.
In reality, the difficulties with oil prices have nothing to do with renewable energy technologies, but everything to do with the astonishing advances in oil-gas technology.
It’s bizzare to predict the end of an industry for producing too much, when only a few years ago you were predicting the end of the same industry for producing too little !
The oil and gas industry don’t need to be “propped up” with government assistance. It’s the other way around, the US government, and US economy, is propped up by the oil industry.
We can both agree on the importance of Clean tech, but publishing fantasies doesn’t help, in fact it becomes counter-productive.
Why ? Because it distracts from the smaller, more practical eco-friendly technologies that need to be implemented.
Craig,
Tesla had a very rare profitable quarter for the 3rd quarter filing… of 22 million dollars.
That means that for the first 3 quarters of the year, Tesla has had a total net loss of ~553 million dollars, which is about 15 million (2.6%) better than what they did last year. At that rate, another 40 years or so and they’ll have a profitable year.
Meanwhile, the oil and gas industry at large has had decades of extremely profitable years. Between Trump and his idiot bigotry, the arch rivals of Iran and Saudi Arabia are starting to work together again. The house of Saud has already reversed their course regarding maintaining market share, and are slashing production, which means that the first quarter extremely rare loss seen in American oil and gas will be a thing of the past for a while (certainly until Trump leaves office, and another half-year for relations between Iran and Saudi Arabia to sour again once the U.S. starts practicing diplomacy again).
But even before the OPEC production caps were put into place, Exxon alone saw a 1.8 billion dollar profit in Q1, a 1.7 billion dollar profit in Q2, and 2.7 billion in Q3… Q4 will probably exceed 4 billion. That means that Exxon has seen more profit every single day of 2016 than what Tesla reported for its very rare surprise profit in the 3rd quarter.
You know that I’m on your side in terms of renewable energy… but what you shared here is nonsense.
Well, I wouldn’t call it “nonsense,” though I agree, as the author himself noted, that this is an anomaly and use largely for rhetorical purposes. Neither he nor I are seriously suggesting that from here forward, Tesla is the only transportation concept that will make money.
Glad to have you back, btw!