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This article is Part 5 of an 11-part series analysis of Tesla, Elon Musk and EV Revolution. You can read other parts here.

My wife loves driving the Tesla Model 3, not for all the selfish reasons I like to drive it (it is fast and quite the iPad on wheels) but because she feels she helps the environment. Is she right?

Unlike an internal-combustion engine (ICE) car, which takes fuel stored in the gas tank, combusts it in the engine, and thus creates kinetic energy, Tesla takes electricity stored in the battery pack and converts it directly into kinetic energy. That’s a very clean and quiet process. However, the electricity that magically appears in our electrical outlets is not a gift from Thor, the thunder god; it was generated somewhere and transmitted to us.

As I write this, I am slightly disturbed by how the topic I am about to discuss has been politicized. I am not going to debate global warming here, but let’s at least agree that an excess of carbon dioxide (CO2) and carbon monoxide (CO) is bad for you and me, and for the environment. If you disagree with me, start an ICE car in your garage, roll down the windows, and sit there for about 20 minutes. Actually, please don’t, because you’ll die. So let’s agree that a billion cars emitting CO and CO2 is not good and that if we emit less CO and CO2 it is good for air quality.

Roughly two-thirds of the electricity generated in the U.S. is sourced from fossil fuels. The good news is that only half of that comes from coal; the other half comes from natural gas, which produces half as much CO2 as coal (though it has its own side effects – it leaks methane). Another 20% of U.S. energy comes from nuclear, which produces zero carbon emissions. The remaining 17% comes from “green” sources, such as hydro (7%), wind (6.6%), and solar (1.7%).