Search
Close this search box.
Sign up for our weekly Newsletter

Should major motor manufacturers fear Tesla?

1419_Model S front shot_Fleetdrive
Winner: The Tesla model S

Share

2 March 2015

The Tesla model S
The Tesla model S has an estimated range of 265 miles

‘Electric cars are just fundamentally better’, was the opening gambit from Elon Musk, Tesla’s CEO, at the Automotive News World Congress in Detroit earlier this year. It may just be one man’s opinion, but as Musk is increasingly compared to Steve Jobs and perceived as a ‘celebrity CEO’, every comment is lapped up by the press.

Musk co-founded PayPal and is the founder and current CEO of SpaceX, a company which aims to launch cargo into space at reduced costs and enable projects such as the colonisation of Mars. With Musk’s fingers in pies as prominent as these, it’s no surprise Tesla grabs headlines and the attention of investors – but is the company really a threat to the likes of General Motors, Toyota and Volkswagen?

Tesla graph

In the near future, Tesla probably isn’t going to worry the market leaders. Despite shares rising 400% in the last two years, Tesla kicked off 2015 by dropping 13% in the first three weeks of the year (shown in the above chart, from online CFD trading account provider, IG).

Firstly, falling oil prices are hurting the alternative energy sector in general. From around $100 a barrel back in June, Brent crude and US crude have both recently settled below the $50 mark. And the trend is yet to show signs of reversing – Saudi Arabia, one of the largest oil producing countries, has repeatedly stated it won’t reduce output to boost prices and claims to have financial reserves big enough to cope with low prices for at least eight years.

Share this article

Facebook
Twitter
LinkedIn
WhatsApp
Reddit
Email

Want more motoring news?

Sign up here for our free weekly serving of motoring.

Sign up here for our free weekly serving of motoring.

Latest news

Top