Tesla Motors Inc. (NASDAQ:TSLA)’s Stock Suffers as Gasoline Prices Plummet

Ever since gasoline prices have dropped in the U.S, Tesla Motors (NASDAQ:TSLA) has been chewing its nails in worry because the customer interest in its electric cars has waned accordingly. The lowering of gasoline prices will cut the demand for the all-electric cars of Tesla Motors (NASDAQ:TSLA); shares have already dropped by 15 percent in the past two weeks. Whereas the company was faring well last September at 285 dollars per share, now it has come down to 207 dollars per share.

Even so, the stock is still 38 percent ahead from last year. Tesla Motors (NASDAQ:TSLA) has been competing with big companies like Toyota and General Motors. The competition would be thriving now because of the low gasoline prices whereas Tesla Motors (NASDAQ:TSLA), which has been pushing the boundaries for automobiles by introducing all-electronic cars, will have a tough time sustaining its revenue and stock price.

Now Tesla Motors (NASDAQ:TSLA) faces an obvious question: Why would a customer spend thousands of dollars on an electric car when a conventional car could be bought for the same price but with low fuel cost. Tesla Motors (NASDAQ:TSLA) will have to go against the market trend and market the all-electric car in an alternative way. The low crude oil prices have affected not only the electric car company Tesla Motors (NASDAQ:TSLA) but the biofuel makers too.

Biofuel thrives upon the higher prices of crude oil. If crude oil is below 80 dollars a barrel, this means Biofuel makers cannot post a profit. Crude Oil prices have to be between 80 dollars to 95 dollars in order for the Biofuel companies to post a reasonable profit. When biofuel companies aren’t posting any profit, the government interest and the investor interest also diminishes from such companies. On the other hand, conventional car companies will be thriving because of the lowering of crude oil prices.

The reason behind that is simple – customers will be attracted towards the conventional fuel cars and investor interest will grow accordingly. Tesla Motors (NASDAQ:TSLA) will be hoping that the fuel prices hike again because the lowering of fuel prices is bad for business, at least for Tesla Motors (NASDAQ:TSLA). One thing we must consider is that the majority of cars on the road are fuel driven, so the public won’t mind the lowering of crude oil prices.

Tesla Motors (NASDAQ:TSLA) has been pushing for all electric cars because they eliminate the aspect of environmental pollution, along with numerous other benefits. But Tesla Motors (NASDAQ:TSLA) will have to wait, for the public to fully embrace its all electric cars. The market trend takes time to change and Tesla Motors (NASDAQ:TSLA) will have to be patient. Meanwhile the company is rolling out new models in the market which is a good thing.

Tesla Motors Inc. (NASDAQ:TSLA) isn’t losing faith and that is the key for lasting in the automobile market: To keep going on with your business as usual, no matter what.