Shares in Tesla, maker of luxury electric cars, fell 14% in just one week reflecting low oil prices.
When oil prices started declining in September this year, Tesla found ground and started to see shares rise alongside other car manufacturers. Now that oil prices are at a 4-year low, the story for the low energy electric cars is changing as consumers feel confident to turn to larger gas-guzzling vehicles.
In September, Tesla shares started to decline and this week has seen the lowest levels since June, down to 212.
The price of gas at US pumps is now falling on average 10 cents per week, according to US Energy Information Administration records announced yesterday.
US Energy Information Administration chart of oil prices:
With an average electric car costing up $100,000, and the new P85D Tesla costing $104,500, sales for Tesla are rumoured to have come down. However, as Tesla does not report sales figures, the market can only go by reports in the press. The Wall Street Journal reported a decline in sales but Elon Musk, owner and CEO of Tesla refuted the article by tweeting, “Article in @WSJ re Tesla sales is incorrect. September was a record high WW and up 65% year-over-year in North America.”
MT4 chart: TESLA
MT4 chart: oil prices
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