Tesla sales forecast cut by 40%
http://money.cnn.com/2014/12/17/investing/tesla-oil-prices/
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.
The biggest drag on Tesla sales will be the lower-priced, mass market Model 3 expected in showrooms in about three years.
Jonas’ doubts that Tesla will be able to price the Model 3 in the $35,000 range as many have been expecting. He’s now thinking the price could be closer to $60,000.
“While nobody buying a Model S today (for nearly $105,000) is doing so to save on their monthly expenses, the longer-term story is far more dependent on the volume success of the Model 3,” he wrote in the note. “Oil price is a factor for Model 3.”
yeah so electric cars are not a slam dunk. I’m sure there’s also problems with the conversion of oil based trucks buses trains and buildings over to natural gas.
So its probably safest to say that high priced oil invites competitors.