The shares of Tesla Motors Inc (NASDAQ:TSLA) dropped in excess of 5% closing at 211.09 in the extended hour trading after lower U.S. car shipments in November and continually falling gasoline prices. The electric carmaker has lost 12.33% share value in the last 5 days.
The electric carmaker is troubled with the lowest gasoline prices in the last four years coupled with the U.S. domestic sales data released by InsideEVs.com. The gasoline prices have declined for the last 68 days with an average price of $2.67 per gallon prompting buyers to choose gas vehicles. Ole Hui, Mizuho Securities Asia Ltd. at Hong Kong, said,
“With the low oil prices, people will think ‘I can buy a normal car, it’s more beneficial that way. There’s less incentive to go to electric vehicles.”
According to the sale data from InsideEVs.com, Tesla Motors Inc (NASDAQ:TSLA) sold 1,200 Model S cars in the United States marking a three-month low sales figure with no change from the previous year. Tesla is the top luxury sedan car in terms of customer satisfaction and Elon Musk, co-founder and CEO of Tesla Motors Inc, expects to ship 50,000 Model S cars net year. Despite the low demand in November, analysts are hopeful for a bright future of the company with minimal effect from the vulnerable oil prices.
Tesla Motors Inc (NASDAQ:TSLA) made its patents available for automakers for use and Mercedes-Benz U.S. International, Inc. is the latest one to use the electric powertrain of the company. The company is planning to use Tesla’s electric powertrain technology in its latest 2015 B-Class electric drive car. This luxury car is likely to offer 142 miles per charge with maximum speed of 62 miles per hour. A 180 horsepower motor powers the luxury B-Class and it charges up in four hours with fast charging cables.
This article has been written by Prakash Pandey.