Elon Musk, the CEO of Tesla, zoomed past Warren Buffett on the Bloomberg Billionaire Index after the electric automaker’s stock rose 11% on Friday.
Musk controls about 20% of Tesla’s stock, and his now $70.5 billion fortune makes him the seventh richest person on Earth.
Despite the coronavirus pandemic, 2020 has been a boom year for Tesla with share prices rising 269%. Musk earned about $6.07 billion on Friday alone.
Buffett, 89, saw his fortune decline after donating $2.7 billion of his Berkshire Hathaway stock to charity but this is not just about Elon Musk. This development says more about the world’s move towards a more sustainable energy source.
In 2018, the global electric car fleet exceeded 5.1 million, up 2 million from the previous year.
With policies being set up to encourage EV manufacturing, oil consumption could take a major hit in the coming years. This should be the major consideration for you as investors.
Countries are trying to be less dependent on oil. Natural energy sources is the answer and metals will make it happen. That’s where the next big revolution will occur.
Barclays commodities analyst said that the adoption of electric vehicles and improved fuel efficiency could wipe out 3.5 million barrels a day of demand. For context, Iran, which pumps about 3.8 million barrels a day.
EV, which stands at about 8 percent of global sales, will account for a third of sales by 2025, according to a report released by BCG Research Institute.
EV sales are expected to surpass internal-combustion-engine vehicle sales by 2030, taking 51 percent of the market.
That’s more than a 50% increase in demand. We’re already short on silver, gold, palladium, and platinum even with just the current demand. An astronomical rise of metal demand from the automobile industry will send the price of metals soaring.
Grab hold of it now.