Elon Musk: Energy is the True Currency in the AI Era – Solar Power, Tesla, and the Future of Abundance in 2026

By VeilNode -

 The Core of Hegemony Wars: Oil, and the New Currency in the AI Era - Energy



Hello, Veilnode AI & Finance Digest readers! After recently passing the Meritz Fire & Marine Insurance MFP, I've been pondering the connections between future energy and finance, which reminded me of oil's role in hegemony wars. Why does oil dictate global hegemony? Why did ExxonMobil (XOM) stock rise in 2025-2026? And why does Elon Musk's vision for the AI era position energy as the 'true currency'? As AI transforms the world, could energy become the center of future value? Let's dive in together!

1.The Importance of Oil in Hegemony Wars: Why Wars and Economies Depend on Oil

Oil isn't just an energy source—it's the core of global hegemony. Throughout the 20th century, geopolitical rivalries over oil access shaped wars and alliances. For example, oil is essential for maintaining a nation's war machine—tanks, airplanes, and ships all stop without it. In the U.S. case, self-sufficiency in oil and influence in the Middle East built its hegemony. Oil has underpinned America's military and economic dominance. Middle Eastern wars (like the Iraq War) were about stabilizing oil supplies and controlling prices. The U.S. used oil to control allies (Europe, Japan) and pressure adversaries (Russia, Iran). For instance, the 1970s oil shocks showcased OPEC's power, but America maintained hegemony through an 'oil for security' strategy, exploiting Middle Eastern instability. Even today, geopolitical tensions like the Ukraine war shake oil prices, making oil a weapon in hegemony struggles. Countries rich in oil can mask economic failures with military adventures, leading to greater conflicts.

2.XOM Stock Rise: What Were the Reasons in 2025-2026?

ExxonMobil (XOM) benefited from this geopolitical backdrop. In 2025, despite a 20% drop in WTI crude prices, XOM hit a 52-week high. Why? First, its diversified business model. Beyond upstream (production), downstream (refining, chemicals) provided stable revenue, and rising natural gas prices (due to winter cold snaps and LNG export growth) offset oil declines.Second, Permian Basin production growth was key. After acquiring Pioneer, XOM plans to double Permian output to 2.5 million barrels per day by 2030, projecting $5 billion in additional revenue over 2024 levels. Rising AI data center energy demand was a boon for XOM's gas and power businesses. In 2026, OPEC demand stability and China's LNG import growth are expected to support oil prices, potentially lifting XOM further. But cyclical volatility (like the 2022 peak followed by a drop) means a long-term investment perspective is needed.

3.In the AI Era, Energy Becomes the 'True Currency': Elon Musk's Vision

Elon Musk foresees a 'post-scarcity' era where AI produces everything, saying, "Money will become an obsolete concept, and energy will be the true currency." In his 2025 Nikhil Kamath podcast interview, he explained that "AI and robots will self-sustain chips, solar panels, and resources, decoupling from monetary systems." Why energy? AI training and operations consume massive power—data centers could use 20% of global electricity by 2030. Musk emphasizes, "Energy can't be printed by law; it must be produced," likening Bitcoin to an "energy-based currency." As energy becomes the bottleneck for AI growth, production capacity will measure wealth and power. This will also help AI boost energy efficiency—through grid optimization and renewable management.

4.Musk's Solar Vision: The Dominant Source of Future Energy, Up to Space-Based AI Satellites

Musk views solar as the "dominant source of civilization's energy." In a 2025 X post, he said, "Solar could scale civilization 100 times by using just 1/100 millionth of Earth's received energy." Referencing Nikolai Kardashev's civilization scale, he argues that harnessing 1/100 millionth of solar energy could elevate humanity to Type I civilization, ultimately aiming for Type II (stellar energy harnessing). For example, just 1/100 millionth could exceed current human energy use by over 10,000 times—making everyone a billionaire in purchasing power. Going further, Musk emphasizes space-based solar. In a late 2025 X post, he predicted, "In 4-5 years, solar AI satellites will be cheaper than ground computing." This envisions a massive solar AI satellite network that balances Earth's energy, even mitigating climate change—satellites finely tuning solar energy to balance hemispheres and avoid geopolitical conflicts. He praised China's solar growth (500 TWh increase in 2025, reducing coal) and urged the U.S. to follow. Musk's vision spans ground solar (roofs, parking lots, deserts) to space solar, combining with AI to explode energy efficiency. He asserts, "Solar will be the majority of future power generation," envisioning an infinite energy era using Earth's deserts or space.

5.Tesla Energy Business Analysis: Growing 'Hidden Gem' Despite EV Decline

Musk's solar vision is materializing in Tesla's energy business. In 2025 Q4 earnings, Tesla deployed 14.2 GWh of energy storage products, setting a quarterly record—surpassing the prior 12.5 GWh and achieving 46.7 GWh annually with 113% growth. This offset a 16% EV delivery drop (418,227 units). Tesla's energy core includes Megapack (utility-scale storage), Powerwall (home use), and Solar Roof (solar roofing). Energy revenue share rose to 12.2% in 2025, with analysts calling it "Tesla's best business." Growth drivers: AI data center demand and renewable transitions—for example, Tesla launched home energy plans with Sunrun in Texas to expand solar adoption. 2026 outlook is bright: 64 GWh deployment forecast (37% growth), with Solar Gigafactory ideas signaling U.S. solar production expansion. Challenges exist—Trump policies could cut incentives short-term. Overall, Tesla's energy business is a 'hidden gem' realizing Musk's vision, meeting AI-era energy needs with strong long-term potential.

6.Wrapping Up: Energy, the Keyword for Finance's Future

From oil hegemony to AI energy currency—change is rapid, but risk management endures. Legacy energy firms like XOM will survive via AI transitions, and Musk's vision urges solar investments. What do you think? Share in the comments!




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