Wall Street Cuts Tesla Sales Expectations Due To Low Gas Prices - But Is Tesla's Target Audience Worried About Fuel Costs?

Wall Street Cuts Tesla Sales Expectations Due To Low Gas Prices - But Is Tesla's Target Audience Worried About Fuel Costs?

One of Tesla Motors' biggest fans on Wall Street has cut drastically sales expectations for the electric car maker, saying that low oil prices could be a problem for the company's future growth.

Adam Jonas, auto analyst with Morgan Stanley -- and long a bull on Tesla -- published a note Wednesday forecasting that Tesla will only be able to sell just under 300,000 cars by 2020. That's far short of the 500,000 cars that Tesla is predicting it will sell by that date.
 


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MDarringerMDarringer - 12/19/2014 4:39:40 PM
0 Boost
No they are not concerned about gas prices. They are concerned about looking green. They are also into sneering at the nasty commoners polluting the Earth's "blood" as one hippy-dippy Ford hybrid commercial put it.


vdivvdiv - 12/19/2014 6:15:53 PM
+3 Boost
Tesla's target audience certainly worries about gas prices, they think prices should be much higher and gas should be taxed to death.


w222w222 - 12/19/2014 7:53:37 PM
+1 Boost
The cut is due to future outlook of the cheaper 35k tesla cars. Many analyst think it won't be that cheap. The price might be around 50-60k. At that price the target consumers certainly arn't raking in 6-7 figures. So yes oil prices will affect the future outlook of Tesla. As for the Model S's target buyers, it shouldn't affect them much.


chewychewy - 12/19/2014 9:43:23 PM
+1 Boost
True. Still I don't think even for Model 3 gas prices matter as much. The brand and product heat of Tesla should work for the 3 regardless of gas prices. So if the true price/cost of the Model 3 should be around 50-60k (reasonable by what current EVs from everyone else are priced with about half the range) how much is the Model S actually costing/should be priced at if it was to be sold at a normal profit?


mre30mre30 - 12/19/2014 10:40:23 PM
+1 Boost
Tesla, at its core is a niche product. Anyone who knows the auto-business, knows that there is ZERO money to be made in the competitive (i.e. cheaper) segments. The top $100,000+ cars are profitable, luxury SUV's (i.e. $80,000 SUVs) are profitable, and for Detroit, luxury pickup trucks are profitable.

Tesla's "expand downmarket" strategy will be challenging. A "cheaper" Tesla will just cannibalize the Model S range. Its a flawed strategy.

Besides, the lustre of "newness" will start to wear off soon and then the "greenies" will be on to the next new thing.



TauronB2GTauronB2G - 12/20/2014 12:29:16 PM
+1 Boost
I'm far from a techie or a greenie. The model E will eat 20 % of Model S sales. It will be different enough from the S so as not to be cross shopped. The model X if it ever comes out is more of a threat to the S. Right about the time the Model E comes out it will be time for a newer larger longer range S. Which I'm sure is being do developed with the X and E.
T


SpartySparty - 12/20/2014 8:06:26 PM
+2 Boost
People try to make this whole Tesla thing into something that it isn't. It's a car maker that has a niche market that are trying to make a profit with that niche.

It's a nice car and very well built, but like every other green thing this nation does, it's countered at every turn by the senseless usage of things ranging from empty city buses running in each of our cities non stop etc, to every 3rd world nation pumping anything they want into the atmosphere.

We're not saving anyone or anything, it costs coal to make electricity anyway. The Earth is a hulking rock floating in an orbit around the Sun and our existence certainly isn't important to this planet.


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