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Tesla Inc (NASDAQ) CEO Elon Musk, the leader of the world’s largest electric-vehicle company and the richest man globally, is calling for more oil and gas production. Some are finding this puzzling and contradictory, but here’s the meaning behind his comments.
What Happened: Speaking at the 2022 Offshore Northern Shore Conference in Norway, Musk discussed the importance of oil and gas.
“I want to thank the leaders and the people of Norway for their long-standing support. I do think we actually need more oil and gas for civilization to function,” he said. “But simultaneously moving fast to a sustainable energy economy.”
Musk stated that the transition away from oil and gas could take decades to complete.
“Realistically, I think we need to use oil and gas in the short term because otherwise, civilization will crumble. One of the biggest challenges the world has ever faced is the transition to sustainable energy and to a sustainable economy.”
The comments show that Musk believes in a future with sustainable energy and lower dependence on fossil fuels, but knows that is not immediately possible.
Musk also highlighted the potential for nuclear energy.
“If you have a well-designed nuclear plant, you should not shut it down – especially right now.”
Related Link: Elon Musk Says This Battery Metal Is The New Oil
Why It’s Important: Earlier this year, Musk made similar comments about needing to increase oil and gas output, which came amid a spike in crude prices due to Russia’s invasion of Ukraine.
Musk in July said that lithium, a key component of EVs, is “the new oil.”
His latest comments have caught people off guard as they clashed with his earlier calls for the demise of the oil industry.
Price Action: Tesla shares were down 3% to $277.70 on Tuesday, according to data from Benzinga Pro.
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Image and article originally from www.benzinga.com. Read the original article here.