{"id":86571,"date":"2014-12-17T17:20:43","date_gmt":"2014-12-17T22:20:43","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=86571"},"modified":"2014-12-17T17:20:44","modified_gmt":"2014-12-17T22:20:44","slug":"tesla-stock-price-sliding-due-to-low-gas-prices","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2014\/12\/tesla-stock-price-sliding-due-to-low-gas-prices\/","title":{"rendered":"Tesla Stock Price Sliding Due to Low Gas Prices"},"content":{"rendered":"
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Low gas prices are taking a bite out Tesla's stock price in the last six weeks.<\/figcaption><\/figure>\n

The low gas prices that have been a boon for truck and sport-utility sales are taking a toll on fuel-efficient and electric vehicles\u2026 and the stock price of at least one company: Tesla Motors.<\/p>\n

The Palo Alto, California-based automaker saw its stock close below $200 a share yesterday for the first time since mid-February at $197.81, which was down $6.23 for the day. The drop below $200 was tied, in large measure, to concerns about declining gas prices.<\/p>\n

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Your Auto Show Source!<\/figcaption><\/figure>\n

While the stock rebounded today, closing at $205.81, that doesn\u2019t mean the impact of gas prices isn\u2019t having a long-term effect. Tesla stock has been sliding steadily since the middle of November when it was in the mid-$250 range. This coincides with the time gas prices were in the early throes of their decline.<\/p>\n

Additionally, it\u2019s changing the view of the company in the eyes of the Wall Street analyst community. One of the company\u2019s biggest advocates in the analyst community issuing a report suggesting the company will not sell as many vehicles as earlier predicted and a cut on its share price estimate.<\/p>\n

Adam Jonas, auto analyst with Morgan Stanley issued a report today forecasting that Tesla will sell just less than 300,000 cars by 2020, which is 40% less than the 500,000 the EV-maker has been predicting. He also cut his production estimate by half to 400,000 units by 2028.<\/p>\n

(Tesla’s China chief clears out. For more, <\/em>Click Here<\/a><\/span>.)<\/em><\/strong><\/p>\n

Jonas believes the much-ballyhooed Model 3, which is supposed to be what moves Tesla into the mainstream of car buyers, will suffer the most due to the low gas prices. He doubts that Tesla will be able to price the Model 3 in the $35,000 range as many have been expecting. He’s now thinking the price could be closer to $60,000.<\/p>\n

(<\/em>Click Here<\/a><\/span>\u00a0for details about why half of EVs are sold in California.)<\/em><\/strong><\/p>\n

“While nobody buying a Model S today (for nearly $105,000) is doing so to save on their monthly expenses, the longer-term story is far more dependent on the volume success of the Model 3,” he wrote in the note. “Oil price is a factor for Model 3.”<\/p>\n

(To see more about the reborn Acura NSX debut at the Detroit Auto Show, <\/em>Click Here<\/a><\/span>.)<\/em><\/strong><\/p>\n

Jonas dropped his price target on Tesla shares to $290 from $320, a 9.4% hair cut, but kept a buy recommendation on the stock.<\/p>\n

The company\u2019s founder, Elon Musk, hasn\u2019t address the change in outlook, he said during the company\u2019s last conference call that his concerns centered on meeting the demand for the vehicles the company currently sells and less so on potential demand for a product that isn\u2019t yet available.<\/p>\n","protected":false},"excerpt":{"rendered":"

Low gas prices have been a boon for truck and SUV sales, but they’ve taken a chunk out of electric vehicle maker Tesla’s stock price in recent weeks. The stock closed yesterday below $200 a share for the first time since February. Check out the details at TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":79279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[8],"tags":[],"make":[],"post-state":[],"category_old":[151],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/86571"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=86571"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/86571\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/79279"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=86571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=86571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=86571"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=86571"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=86571"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=86571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}