Tesla Stock to Plunge Further
Shares of Tesla took yet another beating on Monday. Part of the reason behind this is that the appeal of electric cars globally has been impacted by the rapid plunge in oil prices.
In short, it is now cheaper for drivers to use their gasoline-powered cars. And while the likes of General Motors and Ford’s stock prices have taken a hit too, those numbers don’t compare to the ones that Tesla has been posting.
While it is a given that Tesla is in line to becoming the most dominant electric vehicle manufacturer and is already close to perfecting its autonomous vehicle system, it will still take some time for the company to enjoy the market capitalization that the conventional auto manufacturers do.
Since the launch of its Model 3 in mid-2017, Tesla has developed this reputation of an electric car maker that over promises and under-delivers. And while this narrative is shifting, the global situation has played a role in keeping the company’s progress in check.
Heading Into 2019
Tesla had outlined a target of delivering between 360,000 to 400,000 vehicles. And while they did meet their guidance range (by 65%), it is clear that Elon Musk needs to address the greater issue at hand which would be to create a plan for the company when oil becomes an affordable commodity once again.