NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) are down 2.55% to $208.90 in pre-market trade after it was reported that the electric car company's shares have dropped 14% in seven trading days on growing concern that the cheapest gasoline in more than four years will damp consumer enthusiasm for the company's luxury cars, according to Bloomberg.
A disappointing forecast of Tesla's November U.S. sales by the industry website InsideEvs.com fed the decline yesterday, Bloomberg noted.
Consumers paying less at the pump may have diminished the need for vehicles that run on an electric charge and can cost as much as $100,000, Bloomberg said. Gasoline prices in the U.S. have fallen for 68 days to an average of $2.67 per gallon, according to the motoring club AAA.
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"With the low oil prices, people will think 'I can buy a normal car, it's more beneficial that way'," Ole Hui, a Hong Kong-based analyst at Mizuho Securities Asia, told Bloomberg. "There's less incentive to go to electric vehicles."
Separately, TheStreet Ratings team rates TESLA MOTORS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally high debt management risk."