Mar 13, 6:15AM EDT This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. ​ Summary: As tensions in the Middle East continue to rise, oil and gas prices are already witnessing a surge. This has EV companies like Tesla in a prime position financially as consumers seek alternative options. Two of our 24/7 Wall St. Analysts, Doug McIntyre and Lee Jackson, recently discussed the impact the conflict with Iran will have on the market as it pertains to automobiles, and the irony of how many car companies recently scaled back their EV efforts. “I wanna tell you, one of the greatest ironies in American industry in the last few decades is that if oil goes up to 150 and it stays there for a while and gas goes to seven bucks, that GM and Ford will have gotten out the EV, you know, all of a sudden,” says McIntyre. “You spend all those billions to get into the EV business, you couldn’t sell a single car. And then suddenly everybody in the United States is rushing to dealers to buy EVs.” McIntyre suggests that geopolitical tensions could keep gasoline prices elevated for a long period, especially if disruptions hit key oil infrastructure. In that scenario, companies such as Tesla could become one of the biggest winners because it never abandoned its commitment to electric vehicles. “They’re the only people who stayed in the EV vehicle. They never got out of it. I’d be buying some Tesla right now, just so everybody knows. I think it’s overvalued because I hate the robotics play. I think I would buy some Tesla today on the gas play.” Transcript: Doug McIntyre: I wanna tell you, one of the greatest ironies in American industry in the last few decades is that if oil goes up to 150 and it stays there for a while and gas goes to seven bucks, that GM and Ford will have gotten out the EV, you know, all of a sudden. You spend all those billions to get into the EV business, you couldn’t sell a single car. And then suddenly everybody in the United States is rushing to dealers to buy EVs. No, listen, you and I have seen this before, back when Carter was president and you had the Arab oil embargo. Oh, absolutely. You had people, there’s nobody watching us who’s old enough to remember this. You had people in lines and gas stations with cups coming up to get their ration of gasoline for the equivalent of the payment for their mortgage every month. And listen. It’s like this. Go to an airport right now and there are no, there’s nobody to check your luggage and look at the line. That’s what you had at gasoline station. Lee Jackson: That’s exactly what you had. And the funny thing is gas, I think it went from like I don’t know, in 73 it was 20 cents. It went to 35 cents and people were just stunned. They were absolutely stunned. And then there was only certain days you could get it. And there I worked it. I was a kid in high school, I worked at a gas station and the people were down Woodward Avenue and you know you probably know where this Marathon station was back then. Doug McIntyre: Well. It would just be such an awful twist of fate. If after all of this decision to make huge investments in EVs, then walk away from them, that there’s a circumstance and listen, just so people know. There’s a case to be made that gasoline could be at five or $6, it could stay there for a year. I don’t want people to think that all of a sudden the war’s gonna be over and everybody’s gonna have as much oil as they used to. You know those LNG locations they’ve got over in Kuwait. Imagine that one of those things gets, they’re, they’re Lee Jackson: Just, they’re not doing anything. Doug McIntyre: No, but I’m just saying they’re Lee Jackson: Doing absolutely nothing. Doug McIntyre: All of a sudden Tesla (NASDAQ: TSLA) | TSLA Price Prediction becomes the fastest growing car company in the world by far. Lee Jackson: Yep. Doug McIntyre: Because they’re the only people who stayed in the EV vehicle. They never got out of it. But I’d be buying some Tesla right now, just so everybody knows. I think it’s overvalued because I hate the robotics play. I think I would buy some Tesla today on the gas play. Lee Jackson: And maybe I think there’s a way to buy BYD (OTC: BYDDY) too. You buy that it’s cheaper. Doug McIntyre: You buy BYD, but you know they used to say that the EV was as dead as Julius Caesar. I don’t think that’s right anymore. Lee Jackson: No, you’re right though. The sheer irony of this, after it especially after they all threw in the towel and then it comes back. But the thing is that being noted there’s elections in about nine months and eight months and this just can’t drag on. This can’t drag on or the Republicans will lose their house majority, which is slim anyway. And they just can’t drag on. So I’d be surprised. Doug McIntyre: I would too. But if you think about all the wars that we’ve been in that did drag on, I’m not exactly willing to say. Lee Jackson: Yeah. Doug McIntyre: Well, I’m willing to throw in the towel on that either. I understand your point. Lee Jackson: Yeah. Between Iraq, Afghanistan, and Vietnam you got about close to 40 years combined. So yeah. Well I guess consider a little Tesla, consider a little BYD, and just pray that nothing gets too out of hand. I think Iran is severely damaged and I don’t think they can mount much, but their proxies are the ones causing trouble as well. And Hezbollah is not in Iran, they’re mostly in Lebanon. And the Houthis are in another location. So it’s going to be interesting to see how this plays out. Doug McIntyre: Well the Houthis are apparently the people who guard the Strait of Hormuz, which is at this point if you’re on the side of the bad guys that’s a good job if you’re on the side of the bad guys. Lee Jackson: Yeah, it is. Live News & Earnings