Staff Reports
Kevin O'Leary, the renowned investor from "Shark Tank," delivered a pointed critique of the renewable energy sector during a straightforward interview on Fox Business. Investors are becoming increasingly cognizant of the fact that renewable energy companies, according to O'Leary, are not profitable.
Kevin O’Leary Reveals Why Clean Energy Stocks Are Tanking https://t.co/ZuQDuFM1AZ via @DailyCaller
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Enphase Energy, the Invesco Solar ETF, the iShares Global Clean Energy ETF, and the First Trust Global Wind Energy ETF were among the clean energy equities and exchange-traded funds whose prices were declining, according to O'Leary. In the previous year, the share prices of these once-pretty renewable energy sector darlings have witnessed precipitous declines.
Nevertheless, why do these businesses flounder? Because they depend on government subsidies to remain operational, O'Leary explains. "The lack of profitability among these companies can be attributed to the fact that government subsidies are still necessary to enable these technologies to function," O'Leary explained.
Furthermore, the market is beginning to pay attention. Specifically because a change in administration is a possibility, O'Leary explained, investors are becoming aware that these subsidy mandates entail some degree of risk. An illustration of this is the substantial financial investment required to construct transmission lines for wind energy, which can reach billions of dollars. Federal authorities are beginning to query the necessity of additional subsidies, and states are unwilling to comply.
Nevertheless, these obstacles do not solely affect wind energy. Equally precarious, according to O'Leary, is solar energy. "These technologies are unnecessary, in my opinion. Eventually, they will attain economic status. His statement continued, "The markets have already determined that they are not economically viable at this time."
An additional point was made by O'Leary regarding a recent occurrence in California, where owners of electric vehicles were cautioned against charging their vehicles during peak hours on account of the potential for outages. This observation underscores the current lack of a functional infrastructure to facilitate renewable energy.
What prospects do renewable energy stocks and funds have in the future? Their decline is anticipated to continue, as stated by O'Leary. Occasionally the truth hurts, but it is an unfortunate reality for the renewable energy sector.
