Elon Musk, Tesla CEO said the cheap oil rates will hit electric car sales and market. Tesla won’t be the only company that will be affected with the plunging oil prices. The entire electric car automobile industry will suffer with the lower oil prices.
The lower oil rate has already hit the US market with the decrease in electric automobiles. Last year was a decent year for the electric car companies which had adequate sales. By the end of 2015, with the oil prices dropping there has been a drastic change in the automobile market with the high sales of pickup trucks and SUV’s. Oil rates have gone even lower this year which hit its 12 year lowest level.
Though Tesla is an electric car manufacturer, it won’t be affected as badly as its cheaper rivals as Tesla focuses on high end luxury vehicles. However it will also be affected with not many damages. Tesla will be releasing its mass market electric car, Tesla Model 3. It is priced at $34,000 much lesser than its predecessors.
Elon Musk is optimistic about the sales of Tesla 3 even with the dropping oil prices. Tesla Model 3 is less priced than other luxury EV’s and comes with similar features to the gas run cars. He was speaking at Hong Kong and addressing the media when he revealed these details. He also stated, China is young in terms of electric cars and is moving in the right direction.
Tesla’s plan to produce Tesla Model 3 cars in China is seriously been discussed and considered. Tesla cars haven’t done well in China due to the high import duty. With local production, Tesla will be able to make its mark in the Chinese electric car market as well.