Tesla, one of the leading manufacturers of electric cars, has had its projected sales slashed by 40 per cent.
The American company has suffered as oil prices have plummeted in recent months, making electric alternatives less attractive. As a result stock has fallen by 31 per cent since September, causing an analyst from Morgan Stanley to predict that the company will only sell 300,000 cars by 2020, down from the half a million originally suggested.
With electric models predicted to have a major impact on shaping the future of the motor trade industry, this negative news of their performance will prick the ears of car dealers across the UK. Not only will it help inform the stock they take on but this in turn will also impact the type of cover they get from their road risks insurance policy as they declare the types of vehicles they will need to drive.
As well as appealing to environmentally conscious motorists, electric cars were popular because they offered cost saving benefits while petrol prices were high. However, since May this year oil prices have dropped by as much as 40 per cent, making traditional cars far cheaper to run.
Nevertheless, despite the dip in performance for Tesla and indeed other electric car-makers, Morgan Stanley’s Adam Jonas still thinks this is a good area to invest in. He said that as lower value vehicles become available they will sell in far higher volumes.