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Cheap natural gas also can mean cheap electricity, in case anyone was wondering about the effect this might have on companies such as Tesla. Natural gas produce
by ryanmarsh 11y ago
Cheap natural gas also can mean cheap electricity, in case anyone was wondering about the effect this might have on companies such as Tesla. Natural gas produces more electricity in the U.S. than anything else, including coal (by a tiny margin).
- afarrell 11y agoMore importantly, natural gas often decides the price of electricity in areas where it is only a small fraction of electricity production. Google "Location Based Marginal Pricing"
- mikeash 11y agoI don't think this matters much for companies like Tesla. Electricity is already extremely cheap for a car. The average cost of electricity in the US is about 12.5 cents/kWh, which works out to 3.75 cents/mile for a Tesla. That's cheaper than a Prius at $2/gallon, despite being a substantially larger and heavier car. If you can get in on time-of-use rates and charge overnight when demand is low, it can be nearly free. High gas prices can be good for Tesla, but lower electricity prices won't move the needle for most people.
- barney54 11y agoCoal still produces more electricity than natural gas. There was one month recently when Mat gas produced more electricity but that was an anomaly. In a few years however, nat gas will dominate.