CNBC Chats “The Tesla Effect” & Oil Stocks (Video)


Published on October 11th, 2018 |
by Zachary Shahan

October 11th, 2018 by Zachary Shahan 

Whoa, did CNBC take a U-turn? Is it going to start trolling oil companies instead of Tesla? Or did it just accidentally bring the wrong analyst onto a show?

One of our readers yesterday mentioned “the first mention of the ‘Tesla Effect’ on the share price of oil companies.” Incidentally, it was an analyst on CNBC making the comment, and he even ventured into talk of a runaway Tesla effect.


Paul Sankey of Mizuho Securities seemed to sheepishly bring up the Silicon Valley cleantech giant, perhaps because he knows CNBC’s record on the company, but he eased up after a moment and then explained a few things.

First of all, he used the “Tesla effect” term in association with “the end of the oil age” and the resulting oil stock “problem.”

The second factor just took that a step further. He noted that, as the oil price rises, the Tesla effect will probably just gets amplified. Well, come on, it definitely will.

A third factor contributing to crappy oil stock prices was that oil companies don’t have a good reputation on the market for delivering good returns for shareholders, something they saw starting in 2017.

He also highlighted that they’re seeing 20 year lows in stock prices — lows since 1998, when I was just old enough to put gasoline in a car and drive it around on my own. (Thank goodness those days are over!)

That’s when one of the CNBC hosts stepped in and was all like, “When you say ‘Tesla effect’, can you just explain that.” I honestly wonder whether she was confused (she works for CNBC after all) or if she just wanted it teased out for viewers and headlines.

“The Tesla effect is just the overall concept the 20th century was driven by oil; the 21st century will be driven by electricity. And there’s a 30 year transition, and we’re somewhere — probably 10 years — into that transition.

“And ultimately terminal value of oil has been severely affected by the potential for us to change behavior.”

Well, Paul nailed it! Who the heck let him on the show?

But wait, he still didn’t explain why it’s termed the “Tesla effect” rather than the “EV effect.” I’m scratching my head. Can’t figure out why. …

The Tesla Model 3 is the #4 top selling car in the USA.

Tesla now sells the 3 safest cars ever tested in the US.

Tesla has had 25,913% sales growth in 6 years.

Tesla is the #1 top selling luxury vehicle brand in the USA.

Tesla more than doubled its previous quarterly delivery record in Q3.

The Tesla Model 3 Performance is a silent monster.

The Tesla Model 3 is actually in a class of its own.

The Tesla Model 3 is the #1 highest grossing car (in terms of monthly revenue) in the USA.

The Tesla Model 3 is the #1 top selling American car in the USA.

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Tags: cnbc, Mizuho Securities, oil prices, oil stocks, Paul Sankey, The Tesla Effect

About the Author

Zachary Shahan Zach is tryin’ to help society help itself (and other species). He spends most of his time here on CleanTechnica as its director and chief editor. He’s also the president of Important Media and the director/founder of EV Obsession and Solar Love. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, and Canada.

Zach has long-term investments in TSLA, FSLR, SPWR, SEDG, & ABB — after years of covering solar and EVs, he simply has a lot of faith in these particular companies and feels like they are good cleantech companies to invest in. But he offers no professional investment advice and would rather not be responsible for you losing money, so don’t jump to conclusions.

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