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Why Tesla Motors Inc. (TSLA) Is Not under Threat On Low Oil Prices?

A decline in oil prices continue to raise concerns in the electric auto-industry as to whether it was pre-planned as a way of offsetting the ongoing enthusiasm over electric cars that are seen to be cost effective in terms of operational costs. Tesla Motors Inc. (NASDAQ:TSLA) prominence in the electric space has mostly been attributed to high gas prices that analysts believe may force a number of people to consider them as an alternative.

Tesla Motors Inc (NASDAQ:TSLA)

During an interview on CNBC, Barclays Mike Tyndall, thwarted suggestions that people were buying electric vehicles because of high gas prices.  The fact that Tesla Motors Inc. (NASDAQ:TSLA) is producing electric cars with the desired mile range on a single charge while not compromising on the luxury side of things is  primed to be one of the reasons why the cars will be a success going forward

“I think the reason people buy Tesla Motors Inc. (NASDAQ:TSLA) is probably for a bunch of reasons as well as the fact that they are electric vehicles. Above all else the Model-S is everyone kind of said, it is a great car. So I think it is about other things just besides the actual fuel efficiency side of things, “said Mr. Tyndall.

People are not buying Tesla Motors Inc. (NASDAQ:TSLA)’s Model-S to save on money, but because of its elegancy uniqueness and capability when compared to other cars.  Oil prices dropping even further will not in any way affect Tesla Motors Inc. (NASDAQ:TSLA)’s sales as there will always be demand for other alternatives apart from gas cars. Tesla is also seen as a more desirable player in the electric car segments something that should positively impact its sales going forward.

High prices of electric cars look certain to be one of the biggest hindrance to Tesla Motors Inc. (NASDAQ:TSLA) addressing the needs of the mass market in terms of sales going forward. Tesla may have to slash its prices to be in line with the current market standards, something that should go a long way in thwarting the threat of lower oil prices.

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