Surging Oil Prices Puts Tesla in a Strong Position
The soaring of crude prices and, along with it, the price at gas pumps has made investors bet on electric vehicles, with Tesla Inc. being their only choice. The recent slump in EV stocks had made Tesla, the world’s largest electric car maker and industry leader, ahead of its others start-up challengers.
The impact of surging oil prices The divide was apparent when the two biggest publicly traded EV start-ups in the U.S., Rivian Automotive and Lucid Group, saw a massive sell-off in their stocks after disclosing supply chain disruptions. Surging oil prices have made electric cars more attractive, with the U.S. President calling for greater adoption of EVs. But oil is not the only issue. The Ukraine war has upset the supply chain, and with Fed about to raise interest rates, investors are careful about risk and closely scrutinize EV companies that are not profitable.