Tags: Tesla | Shares | Downhill | Day

Tesla Shares Skid Downhill for 7th Straight Day

Monday, 08 Dec 2014 05:22 PM

Shares of Tesla Motors Inc., the youngest publicly traded U.S. automaker, traded down for a seventh straight day after an industry website reported an estimate of stalling November U.S. sales as gasoline falls.

Tesla fell 4.2 percent Monday to close at $214.36, the lowest since June 13. The seven-day losing streak is the company’s longest since January 2013. Gasoline prices in the U.S. have been falling for 68 days to an average of $2.67 per gallon, according to motoring club AAA.

The website InsideEVs.com earlier Monday estimated Tesla’s U.S. sales in November at 1,200 Model S cars, which would be the lowest in three months and unchanged from a year earlier. The site also advised against putting too much emphasis on November sales in anticipation of the start of all-wheel-drive deliveries this month.

“If there was ever a month to be ignored for Model S sales, it would probably be November,” said InsideEVs. Unlike larger automakers, Tesla doesn’t report monthly sales by country.

Tesla’s U.S. sales have fallen this year as the Palo Alto, California-based company began exporting its Model S to foreign markets.

The shares have gained 42 percent this year, even after falling 14 percent since Nov. 26.

While falling fuel prices may reduce demand for Tesla’s planned mainstream Model 3 car, the share-price decline makes the stock even more attractive, Ben Kallo, an analyst with Robert W. Baird & Co., said Monday in a note.

“We believe the recent decline in TSLA shares is largely driven by the concern low gasoline prices could impact demand if sustained for the long term. That said, we think the weakness provides a buying opportunity,” he said in the note. Tesla “will continue to see strong demand which is largely driven by performance, quality, and brand.”

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Shares of Tesla Motors Inc., the youngest publicly traded U.S. automaker, traded down for a seventh straight day after an industry website reported an estimate of stalling November U.S. sales as gasoline falls.
Tesla, Shares, Downhill, Day
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2014-22-08
Monday, 08 Dec 2014 05:22 PM
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