Investor Cathie Wood, the founder of investment firm ARK Invest, predicted on Tuesday that a paradigm shift in the transportation sector would result in a major dip in crude oil prices.
Oil Prices Will Drop, Cathie Wood Says
In a post on the social media platform X, ARK Invest shared a clip of Wood’s comments on oil prices. “57% of oil consumption is for transportation,” Wood said, adding that the firm believed that mobility was “moving away from gasoline-powered cars and engines elsewhere and diesel-powered trucks to electric.”
The investor added that oil demand has been in the “process of peaking” since the transition began. “We do believe that the oil price could drop into the $30 to $35 range,” she said. ARK Invest, in its post, said that China and Europe were transitioning already and the U.S. would follow.
Trump Touts Venezuelan Oil
Trump, during a rally in Texas, announced that the U.S. had received a shipment of 1 million oil barrels from Venezuela, adding that the U.S. sits on an oil supply that is larger than multiple countries combined. He also said that Venezuela could go on to become the U.S.’s 51st state.
The Trump administration also announced plans to repeal Biden-era methane regulations, saying the move could save consumers and energy producers $45 billion annually.
Cathie Wood Sees Tesla Taking Over Transportation
Meanwhile, ARK has earlier cited Tesla Inc. (NASDAQ:TSLA) CFO Vaibhav Taneja‘s comments about the automaker wanting to expand its footprint into multiple transportation sectors.
During Tesla’s earnings call last week, Taneja said that the company will “continue to augment the [Robotaxi] fleet with other variants over time to address the terrestrial transportation needs of the total population,” adding that Tesla wanted to “take over every part of terrestrial transportation.”
Taneja then said that Tesla will initially focus on transporting people from point A to B, but outlined that the automaker wants to “basically own transportation of any kind on Earth,” he added.
The firm then said that Tesla could move its Robotaxis underground by collaborating with The Boring Company, while it also saw a potential for intercontinental flights via Space Exploration Technologies Corp. (NASDAQ:SPCX) rockets.
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