Tesla or Edison. I will prefer Tesla always . One of the hundred Reasons is AC Gen. Have a Read of this. http://theoatmeal.com/comics/tesla it is a comic dont worry. Wont take much of your valuable time.Let me not divert from the topic. I just top level respect for that Guy. But He was not a founder though . But i believe it is something related to electricity and they produce electric cars. There are leaked documents revealing that the big automobile giants put a stop to Electric cars RnD as they were a threat to the IC engine. But i believe now is the time for electric cars to take the pedestal.
Tesla shares are plunging. they have fallen nearly 25%. The reason is crude oil. The price of crude in not around $65 a barrel. So how is an electric car related company related to crude. Well it is. The simple reason is that as oil prices plummet automobile sales pick up .Electric cars have not gained much popularity. But Elon Musk knows the future. Aston Kutcher Drives an Tesla Electric if you remember watching two and a half men.And they have nearly same performance as do fossil fuel burning car.
But the fall in fossil fuel prices is something that should not affect Tesla. Why? but there seems a direct co-relation that Automobile sales will rise and people will buy cheaper gas eating cars as compared with a $70,000 electric Car! Well we may be wrong in thinking that way. Did you notice the price of that car $70,000. If anyone has that money to buy an electric car , that guy should not worry about petrol prices. It is quite clear that people do not buy electrics because of economic constraints. It is just because he loves the environment . We need more people like them.Not to worry Musk has big plans. There is a model under RnD that will be cheaper and will be aimed at masses.
Let us look at their business model. Actually their business model is a little different form the traditional ones. You have to buy only from their company owned showrooms. This is a reason they have a problem establishing supply chains. Well as per Morgan Stanley research these falls are a little corrections as the stock is trading quite high compared to previous year prices. These small dips should not be a worry for long investors.