Ever since the beginning of the Ford era, we have relied on gas to meet the needs of our vehicles to get us from an A to a B. As we realize, that our activities with carbon emissions such as gas fuels have a consequential negative impact on the Earth, everyone have collectively turned to electricity to alleviate the problem.
This ongoing transition from Diesel to Electricity is a trend that we see in our peripherals everywhere we go. If you go out today to dinner in town, you are now bound to see a $30,000 dollar Tesla, which is an average car price, driving by you in the street.
Due to governmental financial incentives, electric vehicle companies were given the boost to make these vehicles affordable by everyone with a good standing driving license, including Tesla. Tesla affordable vehicles have an average mile range of 240 miles on a single charge compare to your average 20 miles range per gallon on a gas diesel engine car.
If gas cost $2 a gallon, that would be 20 dollars to fill 10 gallons of gas in order to get 200 mile range. Whereas, Tesla cost an average $13 per single charge. Some owners even get free charge from their dealers based on their car lease.
If we use the Tesla model to represent all electrical vehicles on the road who are owned by drivers switching from driving diesel, it confirms that such transition is a smart money decision. Also, as stated before, that transition is already happening in our peripheral present. Meaning that in the peripheral future, the new kids growing up may not even remember or know we used to drive on gasoline.
Saudi Arabia, the largest export of oil in the world, understands that transition very well because their economy is based on people using gas to drive their vehicles. Their solution to transition their economy from an majorly oil based economy is to diversify their economic portfolio.
One way Saudi Arabia diversifies the country’s financial portfolio is by buying major shares stocks, including electrical vehicle stocks, such as Tesla. From their peripheral perspective, they understand what will be mainstream, and they are prepared for it