Tesla, Inc. TSLA CEO Elon Musk on Friday made a puzzling plea on Twitter regarding non-renewable sources of energy.
What Happened: Musk said in a tweet that oil and gas production should be increased immediately. The urgent plea comes in the midst of Russia's invasion of Ukraine, which has caused a spike in oil prices, leading to a big jump in gas prices.
The average price of a regular gallon of gasoline in the U.S. increased to $3.84 on Friday, up from $3.61 on Monday, according to AAA data.
The Tesla CEO went on to add, "extraordinary times demand extraordinary measures."
This statement from Musk was unexpected, as Tesla's business is operating with the goal of supplanting conventional energy production with sustainable energy sources. Additionally, Musk explicitly said in the past that Tesla's mission is to "hasten the oil industry's demise."
The Tesla CEO explained why he made the suggestion in a follow-up tweet, in which he conceded the limitations of renewable energy sources.
Why It's Important: Oil and gas prices have shot up since the start of the crisis in Eastern Europe. Russia is one of the world's largest oil producer and the second-largest exporter. It also supplies natural gas to Europe.
With Western nations imposing sanctions on Russia for its invasion of Ukraine, it is feared that Russia may refuse to sell oil.
Although energy exports are still not subject to sanctions, European nations are reportedly exploring alternatives, and have asked refiners to avoid taking Russian oil supplies.
Earlier in February, Germany stalled the Nord Stream 2 Baltic Sea gas pipeline project that was designed to double Russian gas supply to Germany.
These might pose a risk to oil supply, especially at a time the industry grapples with lean inventories in the aftermath of the COVID-19 pandemic.
Related Link: Tesla's Giga Berlin Factory Receives Final Environmental OK: What Investors Need To Know
Photo: Courtesy of Steve Jurvetson on Flickr
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