Plunging Oil Prices and Their Effect on the Electric Vehicle Industry

by Jason Xu

In an invterview with CNN, CEO of Tesla Motors, Elon Musk, acknowledged that the electric vehicle industry will be hurt by falling oil prices, saying that “it just makes economic sense.” However, Musk showed little concern toward his own company Tesla Motors. He explained that even though the entire industry will be hurt by plunging oil prices, Tesla’s Model S and Model X will still be competitive in the market, because they are hugely differentiated, unlike other cheaper electric vehicle in the market. Musk also talked about Model 3, Tesla’s affordable electric vehicle aiming to hit the market in 2017. Continue reading