Reasons why BlackRock Might Be on the Verge of Driving Tesla Stocks to the Moon

Reasons why BlackRock Might Be on the Verge of Driving Tesla Stocks to the Moon

Amid climate change and harsh weather patterns, BlackRock intends to divert its attention from fossil fuel to eco-friendly alternatives.

Following the news of BlackRock going green, Tesla stocks have been showing positive signs in the market, gaining a new bull run on Wall Street. This comes after a series of record-setting landmarks for the past few days.

At present, the manufacturing company’s market capitalization has almost hit the 100 billion US dollar mark, basking in the limelight of stable stock prices in the US stock market.

But What is the Secret Behind Tesla’s Sudden Upsurge?

According to an interview by reputed news reporters (from Reuters and Bloomberg), BlackRock hinted its intention to reduce its exposure to thermal coal following growing concerns about climate change. At present, the markets are sending mixed reactions to the news as rival companies and miners contemplate a future without coal.

However, despite the strong remarks, a majority of BlackRock’s investment accounts are held in dormant index fund accounts that prove the company will still be entangled in the coal business.

Earlier today, Larry Fink, BlackRock CEO, took time off his busy schedule to send strong sentiments on climate change as the world ushers in the new decade. Through a letter to clients and fellow CEOs, Larry, the leader of the world’s significant asset manager, indicated:

“We are at the forefront of reshaping how we conduct finance. It is at this fundamental edge that we have reassessed our role in climate change. The evidence present to us on climate change has motivated us to compel our investors and clients in reassessing core assumptions about modern finance.”

Following the change of weather patterns and climatic conditions, Larry says the mega-company will be making sustainable changes in its construction portfolio and risk management.

“We intend to drop and cut investments that present or promote high sustainability-related risks such as thermal coal mining. We intend to launch and introduce to the market new investment products that will promote fossil fuels that will show our commitment to saving the world.”

At present, BlackRock manages about 7 trillion US dollars in client assets with a mouth-watering oversees a portfolio that is mostly invested in fossil fuels.

However, the challenge before BlackRock is that only 1.7 trillion US dollars of the 7 trillion US dollar asset under management are inactive managed accounts. All the rest are in passive or dormant accounts.

According to an executive director of a non-profit organization, Majority Action,

“BlackRock should show its seriousness more than just spewing serious sentiments. BlackRock not only needs to pressure index providers to eradicate the production of coal but should also use their voting power to pressurize players to comply with the Paris agreement.”

The reason why Tesla’s stocks have been on the rise is that the manufacturing company that generally deals with eco-friendly products, giving the world better alternatives. BlackRock being one of the significant shareholders of Tesla shares, Tesla is sure to benefit from BlackRock’s decision to go eco-friendly.

Tesla Stocks Appear to be a Better Alternative to Fossil Fuels                      

As an electric car manufacturer, Tesla has been making headlines for the longest time for introducing to the market revolutionary products that are a game-changer.

As much as fossil fuel is taunted to be eco-friendly and climate-friendly, Tesla’s innovations beat the clean alternative source of energy, hands down with the reduced cost of production.

As the future is green and eco-friendly, Tesla appears to be taking long strides to be a global leader in the area, opening branches in major cities of the world.

That explains why Tesla stocks have been making the headlines recently said Marvin Steinberg CEO of Steinberg Invest.

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Author : Gannicus Oliver


Gannicus Oliver is an author, consultant, and digital currency expert alongside being an investor himself. He boasts over three years of crypto market experience. In his free time, Gannicus enjoys uncovering thrilling adventures and travelling around the world.