Luca Pietro on Don’t Short Renewables so Fast
Luca Pietro
Don’t Short Renewables so Fast
Claims and stances
Transcript
- 0:00 As we've seen, a few of the big renewable developer companies that we see, especially in the SP, such as Next Era Energy and AES, have underperformed tremendously this year, and that's been attributed to multiple different factors.
- 0:15 Starting off with the elimination of the tax credits from the one big beautiful bill that took place on July 4th this summer, ordered by President Trump.
- 0:24 But the main thing to keep in mind is that even though these renewable uh companies aren't doing too well right now because of all this motion going on in the space and all the background noise between Congress, etc., uh they're still an attractive investment, and here's why.
- 0:40 These companies are trading at very cheap valuations right now, so it could be a potentially great time to get into a solar or wind developer company right now.
- 0:51 And you know, we've seen in the past these companies have done well because they've consumers have been incentivized to purchase these sources of of uh renewable energy due to these tax credits, uh which caused these these uh renewable companies to not have a super extreme focus on cutting down on uh you know cost and becoming more efficient due to the progress that they were making with these uh the help from Congress and these tax credits.
- 1:20 So now that these tax credits are no longer a thing, these companies are really trying to figure out where they can save the most money in their supply chains and the construction of these renewable facilities, uh, which is going to allow to see some improvements on on the back end of that going forward.
- 1:36 Um along with that, you know, these companies are extremely efficient already, and the the cost of this power is significantly cheaper than gasoline.
- 1:45 So although we're not seeing the immediate effects uh of that that cheaper source of energy, and especially with the tax credits being eliminated this summer and uh for the foreseeable future, especially under President Trump's term, I think we're slowly gonna see over the next five to ten years these renewables becoming an even more important part of uh the general energy that is being consumed by by the global population.
- 2:09 And I think right now is a great time to look into these companies because of their cheap valuation.