When asked why shares of Tesla Motors Inc (NASDAQ: TSLA) are trading down this week, Kelley Blue Book Senior Analyst Alec Gutierrez told Benzinga that he thinks there is more at play than just low gas prices that is weighing on the stock.
While he did say it is fair to suggest that falling gas prices will reduce demand for fuel-efficient, hybrid and electric vehicles, Gutierrez doubts that there is a high correlation between gas prices and interest in Tesla’s Model S.
“I doubt that many would purchase a $75,000 electric sports car simply to try and cut back on fuel costs,” he said.
Instead, Gutierrez would argue that electric and hybrid cars have failed to gain more traction because of the improved fuel-efficiency of traditional gas powered vehicles in recent years.
“The average subcompact, compact and even some mid-size cars now provide consumers with close to 40 MPG on the highway, which is good enough for most it would seem,” he said.
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