Tesla Motors Inc. (NASDAQ:TSLA)’s upward momentum heading into 2015 continues to be under threat especially on low oil prices, which continues to elicit debate as to whether fuel cars have become efficient and worth the buy. Despite the negative sentiments making waves, CNBC’s Guy Adami believes potential investors should make a push for the stock with a tight stop at $225.
Tesla Motors Inc. (NASDAQ:TSLA) growth story has over the years relied on the automaker selling low end cars as well as addressing the needs of people trying to escape high gas prices. With gas prices currently trading at an all-time low, analysts are raising concerns as to whether Tesla Motors Inc. (NASDAQ:TSLA) will be able to enjoy mass demand going forward.
Low oil prices might not be the only challenge that Tesla Motors Inc. (NASDAQ:TSLA) is poised to face going forward according to Timothy Seymour, who believes competition will pose another big test.
“I think the efficiency in the entire auto sector is hurting them you getting 40-50 miles per gallon without having to go electric or having to go even into the renewables. When I look at Tesla Motors Inc. (NASDAQ:TSLA) it is about the competition this is exactly what you were expecting, “said Mr. Seymour.
Seymour also reiterates that Tesla should not be trading as an automaker but as a technology company based on the fact that it is already overpriced. Competition is on the horizon with the likes of BMW Audi and Porsche reportedly developing their own set of electric cars.
Peter Najarian believes demand for electric cars has gone down on the fact that people are now willing to buy big SUV’s even though they are fuel guzzlers. Najarian expects demand for electric cars to on;y improve on an increase in oil prices.
Brian Kelly on the other hand believes consumers willing to spend up to $125,000 on a car will not in any way be deterred by low gas prices reiterating Tesla is still a buy on the ongoing uncertainty. If Tesla Motors Inc. (NASDAQ:TSLA) is to sell its cars to mass markets, then it will have to reduce its prices to command the mass market appeal on the ongoing low oil prices.
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