Tesla Bears Rev Engine on Falling Oil, China Skepticism
?By Inyoung Hwang
(Bloomberg) — Slumping oil prices have restored Tesla Motors Inc.?s status as a favorite among short sellers and bearish options traders.
Speculation that a 58-percent plunge in West Texas Intermediate crude since June and competition from General Motors Co. will hurt demand have pushed short sales to a one-year high. The difference in the cost of bearish options versus bullish ones has almost quadrupled from September, reaching the highest level since November 2012, data compiled by Bloomberg show.
The electric-car maker trails the Russell 1000 Index by about 8 percentage points this year. Investor concerns were compounded this month after Chief Executive Officer Elon Musk cast doubt on sales growth in China, the world?s biggest automobile market.
?Until there?s greater evidence of a further acceleration in sales in U.S., Europe and China, the shares will probably struggle,? said Nick Skiming, who helps oversee about $10 billion at Jersey, Channel Islands-based Ashburton Ltd. ?The fall in the oil price has also undoubtedly made something of an impact on the perception of future sales of energy-efficient vehicles.?
A supply glut in crude has sent the commodity into a bear market. U.S. sales of the main version of Toyota Motor Corp.?s Prius, the bestseller among hybrid electric vehicles, plunged 15 percent last year.
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