Tesla Motors Inc, the California-based electric car company that has seen huge enthusiasm for its luxury electric Model S sedan, has started to decline now – 14% over seven trading days.
The investors, which usually treated the carmaker’s stock more akin to higher-valued technology companies, are now starting to grow weary of the company’s future sales prospects. That’s because gasoline prices are now steady at a four-years low and even observers forecast disappointing US November sales for Tesla. With consumers paying less for the cheapest gasoline in more than four years could trigger diminished interest for a vehicle that runs on electricity alone and can cost as much as $100,000. Sales trends also show that Americans have turned their attention once more to the traditional pickup trucks and SUVs – with Tesla only next year entering the latter segment with the Model X crossover.
Now, gasoline prices in the US have declined for 68 consecutive days to an average of just $2.67 per gallon, according to the motoring club AAA. The US sales of Tesla have steadily declined throughout the year as the company started exporting globally – with the production constricted at its only US factory – though the Palo Alto, California-based company forecasted global sales of 50,000 units in 2015 for the Model S.