WASHINGTON (dpa-AFX) - The current drop in fuel prices could lead to a major sales dip for electric automaker Tesla, according to some industry experts. The Elon Musk-led manufacturer had predicted sales of over 500,000 new vehicles by 2020, but now that number could fall by as much as 40 percent.
The new prediction comes from Morgan Stanley auto analyst Adam Jones, who published his thoughts in an article earlier this week. Jones has historically been onboard with Tesla's growth predictions but now says Musk and company could be lucky to move 300,000 cars by 2020.
Falling fuel prices are not the only concern for Jones, who also predicts Tesla's new family priced Model 3 sedan could put the rest of production into a bind. The car has been announced at the $35,000 price point, but Jones guesses that Tesla will likely have to re-brand the vehicle and reset the pricing to around $60,000, according to CNN.
'While nobody buying a Model S today (for nearly $105,000) is doing so to save on their monthly expenses, the longer-term story is far more dependent on the volume success of the Model 3,' he wrote in the note. 'Oil price is a factor for Model 3.'
Copyright RTT News/dpa-AFX