Tesla shares drop amid falling oil prices

Tesla’s Shares fell 13.6% to $608 per share against the backdrop of falling oil prices and the ongoing outbreak of the coronavirus.

the Battle in oil prices between Saudi Arabia and Russia can challenge the sales of electric cars and solar panels Tesla, according to CNBC. Historically, when the price of oil and gas falling, sales of electric cars and solar batteries — slowing down.

Tesla also struggling with the consequences of outbreaks of coronavirus in China and beyond. Chinese Gigafactory, which officially launched in January of this year, at the end of the month I had stopped and came to life only on February 10. The company says about the likely delay in the supply of new vehicles to customers within one and a half weeks.

last week, Tesla customers have expressed dissatisfaction with the products of the American automaker. Speech in particular goes about obsolete chips in autopilot. Customers are outraged that their Model 3 was not as advanced as promised.

So, in the pre-order for the electric car was announced processors for the autopilot version 3.0, but in fact are version 2.5. Some buyers already suspect Tesla in a deliberate deception to Chinese customers.

the Company is trying to distance itself from the situation did not, but explained that this step Tesla went solely in connection with the outbreak of coronavirus, which destroys including supply chain. As soon as the situation normalizes, the company is free to upgrade your equipment.

Tesla has not yet revised its forecast for sales in 2020, although many economists have warned about the impending recession in the automotive market. Moreover, expectations become reality in individual countries: in February, China’s automobile market fell by 80%.

Dan IVS (Dan Ives) of Wedbush Securities wrote Monday in a note to investors that the prospects for Tesla in China strong in the long term, but for 2020, the company expect difficulties.

the Analyst believes that Tesla is unlikely to smoJette to meet the demand in the first quarter, but the company achieving the level of production of 500 thousand cars in the 20th fiscal year remains achievable goal.

According to numerous reports, citing data from officials CPAC, Tesla produced 3958 vehicles in China during February. The reports did not say how many vehicles Tesla produced in China, shipped in a private company’s stores, and how much shipped to end users.

Industry analyst at consulting group Wood Mackenzie Chandrasekaran RAM (Ram Chandrasekaran) in comments to CNBC said that Tesla’s shares weeks showed growth on the background of the success of the company in China and reduced losses. It is therefore not surprising that on Monday, Tesla shares fell amid free fall of the market.

Chandrasekaran noted that only a small proportion, about 10% of new car buyers make the final decision about which car to buy based on the comparison of energy prices.

“Most people take a purchase decision based on whether they like the car as it is comfortable, its design and operational characteristics and so forth, the analyst said. — While gas prices at $2 per gallon can slightly affect sales of Tesla, more important will be the price of batteries, their performance and infrastructure of charging stations”.

Not only car company Elon musk suffered these days. Other manufacturers of electric vehicles, such as, for example, Nio (a decline of 7.3%) and solar electricity provider SunRun (a decrease of 17%), also experienced a sharp drop in the price of its shares Monday.