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Analyst slashes Tesla sales forecast by 40% due to fuel prices

While falling gas prices are cause for celebration among Americans, many of whom are seeing their budget for Christmas presents burgeon on account of the cheap fuel, it's decidedly bad news for Tesla Motors. The electric car manufacturer's fortunes are being seriously impacted by the low cost of petrol, with one of the firm's biggest fans on Wall Street, Morgan Stanley's Adam Jonas, now slashing his expectations for the Palo Alto, CA-based company. Jonas has a long record of being bullish on the brand, but that hasn't stopped him from lowering his forecast for the company by a whopping 40 percent. In other words, Jonas thinks Tesla will only be able to sell 300,000 vehicles by the end of the decade rather than the half a million that was originally forecast. "While nobody buying a Model S today is doing so to save on their monthly expenses, the longer-term story is far more dependent on the volume success of the Model 3," Jonas wrote, according to CNN Money. "Oil price is a factor for Model 3." Gas prices might not be the only factor that could hurt the Model 3, though. Jonas seems to think that Tesla won't be able to sell its more affordable model for anything less than $60,000, which is a far cry from the $35,000 price that the company has targeted. Jonas doesn't elaborate on why Tesla might miss its target so drastically, but it does help to explain his bearish attitude – if gas prices remain low, there's not really any incentive for customers to join the Tesla family. That's doubly true when the cost of joining said family is twice as much as expected.

Harry Reid in favor of $10,000 federal EV tax credit

Harry Reid says the federal government should commit more funds towards incentives for electric-vehicle purchases. We'll wait for readers' shock to sink in. Now, here are the details. The Senate Majority Leader (D-NV) is backing President Barack Obama's efforts to raise federal incentives for EV drivers to $10,000 from $7,500, according to The Detroit News. He's also big on the US Energy Department boosting its vehicle-research budget to help bring down the cost of EVs. Reid notes that Tesla Motors' $5-billion Gigafactory, which will be built near Reno, will provide $100 billion worth of economic value to the state. He also pointed out that Tesla paid off its $465-million loan from the US Energy Department last year, nine years early. There's a way to read this as some sort of quid pro quo for the new battery plant, since Nevada's providing about $1.2 billion (over a 20-year period) in incentives to Tesla and factory-building partner Panasonic and cutting EV prices for the average could help Tesla. But Reid has been speaking out in favor of more green cars for a while. In 2009, he helped promote a bill that would provide more incentives for people driving natural-gas powered vehicles. The year before that, Reid went on record saying that the US needed "a crash course to develop alternative and renewable energy." And in 2007, he called the debate over a more stringent Corporate Average Fuel Economy (CAFE) standard pointless because, he said, they were a given. News Source: The Detroit NewsImage Credit: J. Scott Applewhite / AP Government/Legal Green Tesla Electric incentives nevada gigafactory harry reid

New York Auto Show, Tesla Model 3, Alpina B7 | Autoblog Podcast #535

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Reese Counts and Senior Editor of Green John Snyder. We talk about the New York Auto Show and its highlights. We also discuss some of the cars we've had in the office including the Jaguar XF S Sportbrake and BMW Alpina B7. And of course, we'll help choose a new vehicle for a listener in our "Spend My Money" segment. Autoblog Podcast #535 Your browser does not support the audio element. Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown New York Auto Show Cars in the office: Jaguar XF S Sportbrake, BMW Alpina B7 Tesla Model 3 Spend my money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Green Podcasts New York Auto Show BMW Jaguar Tesla Car Buying Used Car Buying Wagon Electric Luxury Performance Sedan 2018 new york auto show alpina alpina b7