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Elon Musk: Low Oil Prices Still Hurt Electric Cars

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Elon Musk: Low Oil Prices Still Hurt Electric Cars
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One of the most prominent arguments against owning shares of Tesla Motors Inc (NASDAQ: TSLA) is that low oil prices, especially at the gas pump, minimizes demand for fully electric cars.

Speaking to CNN Money, Tesla CEO Elon Musk lent some credence to the theory, but argued his company is in a substantially better position versus its peers.

"[The] industry as a whole, I think, will definitely suffer from lower oil prices," Musk told CNN Money in an interview on Monday. "It just makes economic sense."

Related Link: Chowdhry: How Tesla Stock Gets To $385

Musk added his company will be less affected because Tesla's "significant product differentiation." He added that lower priced electric vehicles will be the ones taking a "pretty big hit" as there is "little to no differentiation" between a gasoline version of the vehicle and an electric version.

"If they're about the same, and the electric version doesn't have a compelling economic proposition, then you've got a real issue in the market," Musk added.

Shares of Tesla were trading at $200.10 late Monday morning, down 1.21 percent on the day.

Posted-In: cnn money electric vehicles Elon Musk Oil oil pricesNews Commodities Markets Best of Benzinga

 

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