Published Date : Nov 21, 2017
The future of the oil industry is likely to be threatened by none other than Elon Musk. If what he plans is to materialize sooner instead of later then the oil industry has serious threat coming its way. As the need for environment-friendly vehicles is rising by the day, Musk stressing on solving his manufacturing woes and giving the world a sustainable solution. A recent news report states that if Tesla can match Apple Inc.’s manufacturing capabilities, it is sure to give the oil industry a run for its money.
Manufacturing Woes are the Only Challenge for Tesla’s Dream
The report also stated that presently Tesla’s biggest challenge is achieving mass production of Model 3 electric car. However, if the company can develop and commercialize a battery-operated car with a 500-mile range it could really lift the burden of burning fossil fuels. Presently, road freight is dominated by diesel. It currently amounts to 20% of the overall oil consumption across the globe. On the other hand, trucks contribute to about 60% of the global diesel demand.
A revolution of electric cars by Tesla will also prompt competitors to tread the same path. Collectively, this will lead to lesser diesel consumption in the foreseeable future. The International Energy Agency (IEA) anticipates that the demand for gasoline will begin to drop before 2040 due to a soaring uptake of electric cars. However, road freight and the aviation industry will have continue using oil due lack of choice. The demand for oil is expected to witness a rise as trucks and buses will demand a diesel all throughout 2040.