Will Tesla Kill The Oil & Utility Industries?

Tesla began as an automotive company but obviously a transition from just a standalone car manufacturer to an alternative energy company has begun since its acquisition of Solar City. The new Tesla solar roof tiles are revolutionary to building materials and have been backordered well pass this year already. Tesla is not just disrupting the automotive manufacturing business they are disrupting the energy grid as a whole. Tesla is building the largest battery manufacturing facility for a place inside the vehicle of tomorrow and the future smart home. Consumers today are monopolized to a central utility company that runs their power. As electronic vehicles pick up more and more people will have their cars connected to their home as their main source of fuel for these vehicles. More and more owners will want to be independent of the grid for that supply of energy this was why solar city was purchased. Tesla will continue to grow in the alternative energy space from every angle. Elon musk has the potential to build the standard oil of alternative energy to the world. The Tesla automobiles are world-class electric vehicles years ahead of competition. I have exited positions in oil because of this long term situation and believe long term utility companies will suffer when a moderate amount of consumers live independant from the grid.

We have a sell rating on Oil ($30/barrel)and Exxon($60). We expect the value of oil to decline long term as electric vehicles become more mainstream lessening overall gasoline consumption. 

One of the best way to play these trends is the ETF SPYX An SP 500 etf that excludes companies attached to oil.