The shares of the electric carmaker, Tesla Motors Inc (NASDAQ:TSLA), bounced back after continuously falling for the last 7 days closing at $216.89 with 1.18% improvement at the end of regular trading session. Automobile experts and analysts have denied the impact of falling oil prices on the luxury cars costing more than $100,000.
Irrespective of the earlier speculations holding falling oil prices as one of the reasons for declining shares, David Whitson, Morningstar Inc. said,
“People who are buying Tesla today don’t really care if gas is cheap or expensive. They want it because it’s a status symbol or for the performance or they are very eco-conscious and just don’t want to consume fossil fuels, regardless of what they pay for the fossil fuels.”
At the same time, some analysts are opined that for a stock trading at $259 on November 14, this might just be the time to initiate positions in Tesla Motors Inc (NASDAQ:TSLA). The fundamentals of the company are as strong as they would ever be and it depends upon performance, luxury, and quality rather than falling oil prices. The current decline in stock prices originated because of the long-term impact on the overall demand of electric vehicles.
However, analysts at Orips Research are expecting the shares of Tesla Motors Inc (NASDAQ:TSLA) to further drop 27% from its current levels and the advisory firm even expected the prices to fall down to a more meaningful correction at $165.
The electric carmaker has started delivering its luxury Model S sedan in Australia with first-nine customers receiving their cars. Tesla Motors Inc (NASDAQ:TSLA) is likely to begin deliveries for other customers tomorrow. The company will inaugurate its first service store in Sydney this month and another store in Melbourne in 2015.
This article has been written by Prakash Pandey.