CNN reports that Wall Street is worried about how Tesla will weather record-low gas prices. CNN calls it “Tesla’s worst nightmare”.
Color me unconvinced.
Tesla, even with the Model 3, is not competing on price. They’ve succeeded in building a car that competes on quality and technology and brand.
At the margin they’ll certainly lose a few customers due to a higher total cost of ownership, but I hardly see this as Tesla’s worst nightmare. I think gas could go to $0 and Tesla would still sell a ton of cars.
Originally published at www.davidincalifornia.com on February 4, 2016.