Probably because of Good old Russian news. Russia to recognize the independence of Donetsk and Lugansk.
Russian index down 10.5%, check here
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Russia/Ukraine conflict
- Thread starter amolina
- Start date
Russian index down 10.5%, check here
What kind of impact would a Russian invasion of Ukraine have on tesla the company? Im not asking about short term stock market moves. I've heard it might impact the silicon supply chain for the already short supply of chips? Seems Teslas are barely sold there so there would not be much impact there. Additional port congestion perhaps? I'm struggling to think of anything that would have a material impact. Seems it would give spaceX a boost in public opinion, so maybe tesla by proxy?
If supply chain hold up, a prolonged Russia war for Tesla is like Zoom during Covid. As oil reaches 120+ a barrel, Tesla will most likely can't keep up with orders even with additional price increases as people start forking out over 100 dollars at the pump /week. And for people who thinks gas prices doesn't affect people's car purchasing decision, you can check what happened last time oil was 100+/barrel. SUVs ended up sitting on the lot and brands like Hummer disappeared.
Russia is the 3nd largest oil producer and 2nd in natural gas production. The EU depends on 40% of their usage on Russia.
Higher energy costs from oil/gas skyrocketing will drive up prices of everything including the production of raw and manufactured materials used in vehicles and batteries. Tesla is already supply constrained, but I'd say the net impact will be a decline in car demand overall due to costs trickling through the supply chain and likely throttling miles driven.
Add higher financing costs to commodity inflation and vehicle sales might see some real downward pressure
Not all oil prices will increase. I see China being a huge benefactor of this and see their energy price decrease if Russia loses a significant amount of revenue from EU.
Natural gas prices are likely the real risk in a conflict with Russia, nobody wants to take more crude oil off the market right now but Russia can do some legit harm on the natural gas side
Not sure how that will play out with China, but there are suspicions that a move on Taiwan might also be coming and that would be a whole other ballgame
If you remove a source of a commodity from the market and demand doesn't drop, price of the commodity tends to increase overall. We'll see something similar with potash prices and sanctions on Belarus, Canada is set to benefit there
Buckminster
Well-Known Member
The US semiconductor industry imports 90% of neon supplies from Ukraine, which Russia could prevent the export of
35% of palladium used in automotive sector, electronics and medicine also comes from Russia
35% of palladium used in automotive sector, electronics and medicine also comes from Russia
I guess its a good thing teslas don't need catalytic converters or medicine. (trying to look on the bright side)
I am happy to see Biden and all of the EU willing to stop Putin. This is great news for EVs and alternative energy around the world to combat the Climate Crisis which is progressing rapidly. I wonder when Putin will lose support in his own country so Russians can join the mission to elimination of fossil fuels. All great news IMHO.
jabloomf1230
Minister of Silly Walks
But only 21% of EU energy usage is supplied by natural gas. Other sources will easily make up most of the 8% lost due to Russia, as long as the invasion doesn't last for a year or more.
Nice scenario, but Russia is a failed state with a non-existent economy without oil and gas, so they'll never join the mission -- well never say never, decades?
Guess we can expect 2022 to be another year of supply chain issues. Will probably affect the competition more than Tesla, but Tesla will also be affected.
Imo Europe have been damaged by peace for too long and has forgotten how to play geopolitics. Shutting down nuclear to become dependent on Russian gas while financing Russia’s war against Europe was horrible geopolitics. Same with the wests inability to understand it’s competition with China.
Book recommendation:
The US has to start getting dirty if it wants clean energy and high tech. It's well past time to sensibly invest in home grown mining.
