Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
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Tesla: The Best Way To Benefit From The Paris Climate Change Deal
The reason why this deal does not matter at present is that a country's signing of the deal does not mandate the country actually do anything to cut down on global warming. Though the deal has set goals, it does not specify obligations of its signees. That is, with participation voluntary, a country can merely sign onto the deal while not actually obligating itself.
So - if this deal has no tangible outcome - why did this deal even occur? Signing onto a deal that is intended to fight global warming makes the politicians who went to Paris look good. Think of it as a paid vacation for your country's politicians on the taxpayer's dime - all at a time when bigger issues, such as the recent terrorist attacks and threats of ISIS members hiding in groups of Syrian refugees, have not been adequately address.
I don't mean to get political in this article, but I must point out that the recent climate change summit is a mere drop in the bucket in terms of the general world economy. That said, what changes could this deal possibly bring in the future? Here are the two largest possibilities:
First, some governments might actually take the deal seriously and act, imposing restrictions on activities, energies, or goods that are considered to lead to global warming. (Note: The debate on global warming - that is, what is causing the warming of the earth, not whether the earth is warming - is still out, meaning that the regulations from country to country will likely vary drastically unless they all fall under an international regulation.)
Second, consumers will become more aware of climate issues as a result of the media exposure this deal has gained. In turn, some consumers will change their consumption habits.
The second possibility is much more likely. Psychologically, a large news event like this causes cognitive dissonance in those consumers who are already concerned about global warming but have done little to counteract it. However, because cognitive dissonance is a phenomenon strongly tied to the ego, consumers will likely find "solutions" to global warming that are conspicuous.
This brings us to Tesla Motors (NASDAQ:TSLA).
Why would anyone buy a Tesla S or Tesla X to fight global warming? Certainly, you do reduce your use of fossil fuel. But is spending up to six figures on a car really more beneficial to the environment than buying solar panels?
Of course not. Nevertheless, many consumers do make the switch to electric cars, mistakenly believing that doing so can help solve the global warming "problem" (I report; you decide). In fact, the second and third reasons consumers make the switch to electric cars can be considered forms of conspicuous consumption:
That is, reasons #2 and #3 both give visible status effects. "Reducing environmental impacts" can be done much more cost-effectively than buying a car, implying that consumers giving this reason are actually saying, "I want people to know I'm environmentally conscious." Likewise, reason #3, getting privileged access to an exclusive lane makes consumers look good in front of their passengers and all the cars they are passing while in the HOV lane.
And with climate issues hitting the news, consumers will be more likely to act on these forms of conspicuous consumption (primarily reason #2). But why TSLA? It certainly is not the market leader in electric vehicles when you look at the international market:
TSLA is not the market leader because it is conspicuous! TSLA, by its very nature, is conspicuous because it is expensive, thereby forcing consumers with lower socioeconomic statuses to buy cheaper alternatives. Just like buying a Coach (NYSE:COH) bag is a form of conspicuous consumption for the rich and fashion-oriented, a Tesla car is a conspicuous purchase for the rich and environmentally-conscious.
Yes, the news will likely fuel some extra sales, but unless you're a swing trader, you should also look into TSLA's fundamentals.
Buy TSLA if you want to play the "global warming in the media" game!
http://seekingalpha.com/article/375...to-benefit-from-the-paris-climate-change-deal
All those tax incentives and rebates are going to the rich. Thank you very much for saving the planet.
The reason why this deal does not matter at present is that a country's signing of the deal does not mandate the country actually do anything to cut down on global warming. Though the deal has set goals, it does not specify obligations of its signees. That is, with participation voluntary, a country can merely sign onto the deal while not actually obligating itself.
So - if this deal has no tangible outcome - why did this deal even occur? Signing onto a deal that is intended to fight global warming makes the politicians who went to Paris look good. Think of it as a paid vacation for your country's politicians on the taxpayer's dime - all at a time when bigger issues, such as the recent terrorist attacks and threats of ISIS members hiding in groups of Syrian refugees, have not been adequately address.
I don't mean to get political in this article, but I must point out that the recent climate change summit is a mere drop in the bucket in terms of the general world economy. That said, what changes could this deal possibly bring in the future? Here are the two largest possibilities:
First, some governments might actually take the deal seriously and act, imposing restrictions on activities, energies, or goods that are considered to lead to global warming. (Note: The debate on global warming - that is, what is causing the warming of the earth, not whether the earth is warming - is still out, meaning that the regulations from country to country will likely vary drastically unless they all fall under an international regulation.)
Second, consumers will become more aware of climate issues as a result of the media exposure this deal has gained. In turn, some consumers will change their consumption habits.
The second possibility is much more likely. Psychologically, a large news event like this causes cognitive dissonance in those consumers who are already concerned about global warming but have done little to counteract it. However, because cognitive dissonance is a phenomenon strongly tied to the ego, consumers will likely find "solutions" to global warming that are conspicuous.
This brings us to Tesla Motors (NASDAQ:TSLA).
Why would anyone buy a Tesla S or Tesla X to fight global warming? Certainly, you do reduce your use of fossil fuel. But is spending up to six figures on a car really more beneficial to the environment than buying solar panels?
Of course not. Nevertheless, many consumers do make the switch to electric cars, mistakenly believing that doing so can help solve the global warming "problem" (I report; you decide). In fact, the second and third reasons consumers make the switch to electric cars can be considered forms of conspicuous consumption:
That is, reasons #2 and #3 both give visible status effects. "Reducing environmental impacts" can be done much more cost-effectively than buying a car, implying that consumers giving this reason are actually saying, "I want people to know I'm environmentally conscious." Likewise, reason #3, getting privileged access to an exclusive lane makes consumers look good in front of their passengers and all the cars they are passing while in the HOV lane.
And with climate issues hitting the news, consumers will be more likely to act on these forms of conspicuous consumption (primarily reason #2). But why TSLA? It certainly is not the market leader in electric vehicles when you look at the international market:
TSLA is not the market leader because it is conspicuous! TSLA, by its very nature, is conspicuous because it is expensive, thereby forcing consumers with lower socioeconomic statuses to buy cheaper alternatives. Just like buying a Coach (NYSE:COH) bag is a form of conspicuous consumption for the rich and fashion-oriented, a Tesla car is a conspicuous purchase for the rich and environmentally-conscious.
Yes, the news will likely fuel some extra sales, but unless you're a swing trader, you should also look into TSLA's fundamentals.
Buy TSLA if you want to play the "global warming in the media" game!
http://seekingalpha.com/article/375...to-benefit-from-the-paris-climate-change-deal
All those tax incentives and rebates are going to the rich. Thank you very much for saving the planet.
