SolarCity Corp (SCTY), General Motors Company (GM), Tesla Motors Inc (TSLA): U.S Shale Boom Will Have Minimal Impact On Alternative Energy Plays

General Motors Company (NYSE:GM) is also working with Maryland-based TimberRock Energy Solutions on a project that would allow surplus or unused energy in electric vehicles to be supplied back to the grid. This enhances the push for efficiency and comes even as General Motors Company (NYSE:GM) improves its standing among consumers as signaled by recent positive consumer reports.

Tesla Motors Inc (NASDAQ:TSLA), which boasts of one of the most phenomenal rallies this year (a 52-week range of $25-$133-and it’s currently trading intimately close to the 51-week high), has also carved out its niche in the market. Company CEO Elon Musk is leveraging his shrewd business side to tout the concept of the luxury EV, and it is working. In fact, Fool writer B.A. McKenna argues that Tesla is a super ball stock; highlighting how it bounced back after a slight dip in the stock market after Goldman Sachs gave a price target of $87.

To seal the case for alternative energy plays, Environmental, Sustainability and Governance (ESG) factors, are taking center stage in the investment front. Investors have come to terms with the ravaging effect of neglecting these important factors. Last year’s drought for instance, totaled into millions of dollars in losses for farmers and suppliers. In view of the need to integrate investing with ESG factors, more attention is being given to green energy. And even as oil supply increases within the U.S borders, expect green plays to remain cushioned by informed institutional and individual investors. The last thing we could hope for is negative climatic conditions and a hostile political climate brought about by the blessing and curse that is oil.

Conclusion

Increased U.S oil production is, in every way, good news. From bridging the oil import gap to improving certain businesses like freight and insurance, it could greatly benefit investors who invest in the right investment vehicles. However, the argument that it could hurt alternative energy plays is flawed. If anything, investors in green solutions will gain going forward; especially now with large scale production and reduced prices. Do not pull out of green plays because of the oil scare; there is still money to make.

The article U.S Shale Boom Will Have Minimal Impact On Alternative Energy Plays originally appeared on Fool.com and is written by Lennox Yieke.

Lennox Yieke has no position in any stocks mentioned. The Motley Fool recommends General Motors and Tesla Motors . The Motley Fool owns shares of Tesla Motors. Lennox is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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