Changes in market conditions acting as big hurdle to own all-electric vehicles

Changes in market conditions acting as big hurdle to own all-electric vehicles

There is a rise in demand for electric vehicles like Tesla’s Model S, but not at the pace as it has been expected. In December 2015, Navigant Research has projected that the number of plug-in cars will increased from around 120,000 in 2015, including more than 300 Tesla Model S, to 950,000 in 2024.

In fact, President Barack Obama said in 2011 that the US would become the first nation in the world to have one million electric vehicles on the road and it would happen by 2015. But two years later, the Department of Energy gave up that goal.

“Looking back at some of the forecasts made by the White House, saying we want 1 million vehicles on the road by 2015, we were pretty early in saying that was impossible”, said Scott Shepard, a Navigant analyst, and report’s co-author.

The market has also undergone drastic changes in the last few years like reduced gasoline prices weakened the idea that plug-in vehicles will lead to cash-saving. Also, automakers have brought improvements in the quality and fuel economy of their small cars than run on gasoline. Owing to these reasons, those who already have small cars do not find any reason to buy a plug-in hybrid.

Plug-in vehicles include hybrids like the Chevrolet Volt that run on gasoline as well as on electricity and all-electric vehicles such as the Nissan Leaf and Tesla Model S. Poor performance of the Volt and Leaf in the first 11 months of 2015 was majorly due to low fuel prices, as the sales have declined of 23% and 41% respectively.

In comparison to other brands, Tesla has a much better year. From January to November, the automaker sold 20,498 units. People were of the view that they do want to have an all-electric car but there are some issues.

Firstly, cost, which starts at $69,900 and the amount increases even more with additional add-ons. Then, next is the availability of charging stations.

In other news SeekingAlpha reported, Tesla is flooring the pedal to meet its Q4 delivery guidance. Tesla stock price has seen an upswing on a bullish analyst note. Even the most bearish investors may be thinking that Tesla will meet its Q4 delivery guidance. I believe we shouldn't forget how incorrect and overly bullish these analysts have been in the past. Below are some factors investors should consider before increasing their stakes in TSLA for a long-term investment.

According to a report from the Fortune, In a research note to clients this week, Chowdhry said he predicted that Tesla has delivered enough cars so that it would end the fourth quarter at the high end of its guidance. He expected that Tesla delivered 18,300 cars in the quarter, he said, which would be at the higher end of an expected 17,000 to 19,000 cars.

Tesla’s annual and fourth quarter deliveries are very important numbers for the company. Investors want to know if it the car maker can meet the challenge of ramping up production for the Model X electric SUV at the same time that it has been trying to make more Model S electric sedans.

There are few businesses in which eight-fold growth would be a disappointment, but that may be the case when looking at projections for the U.S. sales of plug-in vehicles, such as Tesla’s Model S, which can be found on sale in Columbus.

Navigant Research issued a forecast last month saying that the number of plug-in cars will grow from about 120,000 in 2015 — and that includes the more than 300 Teslas sold at the Easton dealership last year through November — to 950,000 in 2024, told the Dispatch.

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