Hedge Fund Manager Chanos: Pump Oil Now Because EVs Are Coming
Hedge fund manager and Kynikos Associates President, Jim Chanos was interviewed on CNBC on Thursday, and had a couple interesting (and uncharacteristic) observations worth noting.
The first being bullish on solar, but still maintaining a short position in Solar City (of whom Chanos says is not a tech company, but a finance company); despite the recent surge in PV stocks thanks to the pending 5 year renew of the 30% federal tax credit.
The second point of interest was a message to all the oil pumpers out there:
“I think if you were to look out five or 10 years, if I was a member of OPEC, I would be pumping as much as I could today while it’s worth something, because it might not be worth a whole lot by 2030.”
The reason? Electric vehicles.
The fund manager stated he was short all of the major leveraged oil companies today.
“What is really fascinating is that you are going to see this connection between solar and electric vehicles, and think that is one of the more interesting things that not a lot of people are talking about…we are going to get automakers who are going to transition their fleets much more to electric.”
“…Tesla was the vanguard, but now major manufacturers are putting their fleets to electric. Imagine a world in which most of the vehicles are electric. And yet they are powered off the grid by natural gas and solar, so you reduce coal emissions and you reduce burning oil. 80% of all petroleum demand is transportation.”
For some further insights into Mr. Chanos’ positions and his outlook for oil and electric vehicles, check out the whole interview video at CNBC. Hat tip to Mark H!