Press "Enter" to skip to content

Musk Considers Buying Mines To Accelerate Transition To Sustainable Energy

Robert Kiyosaki, author behind “Rich Dad, Poor Dad,” tweeted out that one of Tesla’s biggest weaknesses is silver, arguing the metal’s spot price is cheap due to manipulation in its pricing, even though it has high premiums. 

“ELON’s WEAKNESS is silver,” tweeted Kiyosaki. “All of his businesses burn silver. He will probably buy his own silver mine. I own a mine & real silver coin. Spot price silver low. Losers complain about silver’s high premiums. Spot low because price manipulation. Be like Elon & me. Pay the premium.”

Elon has said multiple times that buying a mining business is on the table. “It’s not out of the question,” Musk told the FT Future of the Car 2022 conference. “We will address whatever limitations are on accelerating the world’s transition to sustainable energy. It’s not that we wish to buy mining companies, but if that’s the only way to accelerate the transition, then we will do that.”

While Musk has squashed the idea that Tesla would purchase another carmaker, the CEO seems to have been quite vocal about the possibility that the automaker could purchase a mining company. 

Many in the mining industry noted the purchase of a pre-existing metals producer would be much cheaper than Musk’s $44B bid earlier this year to buy the social media platform Twitter for himself. According to Keith Neumeyer, Chief Executive Officer of First Majestic Silver, becoming more vertically integrated across the entire supply chain would make sense, and it is only a matter of time before those technology companies start buying up metals miners that are strategically important. 

Elon Musk

“We’ve seen Elon Musk invest in nickel and also lithium. I wouldn’t be surprised to see the technology sector start buying up miners. Why not own the entire supply chain? If you are producing iPads, you’re at the mercy of the miners. In a constrained environment where the metals are not there, you need to own a mine to close the supply chain,” Neumeyer told Michelle Makori, editor-in-chief of Kitco News at the BMO Global Metals and Mining Conference.

He added: “In sci-fi movies, there’s always one or two conglomerates that run the planet. We’re not that far away from that. How many trillion-dollar companies do we have today? 10 years ago we had zero. Today, I think we’re at about five. These companies are getting bigger and bigger, and they’re wiping out the competition. So, what does that mean 10, 20, 30 years from now? These big conglomerates are going to own more and more of the supply chain. For them to move down and start buying up the miners…for me, as the CEO of First Majestic, I want to own the whole supply chain. I want to own the refinery, I want to own the smelter, I want to own the mint, because that way, my margins increase. Why wouldn’t the Apples of the world not want to do the same thing?” 

0 0 votes
Article Rating
Subscribe
Notify of
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
1
0
Would love your thoughts, please comment.x
()
x