Falling crude oil and gasoline prices are putting the brakes on Elon Musk’s Tesla Motors (NasdaqGS: TSLA) and alternative energy sector exchange traded funds.

There is a psychological correlation between energy prices and alternative clean technology stocks, and the plunge in oil prices have erased a good chunk of gains in the alternative energy sector.

For instance, investors fear that electric car demand will diminish as the cheap gas prices would boost sales of gasoline-powered vehicles. TSLA touched a low of $195.4 Tuesday, trading around its lowest since the May correction earlier this year as observers argue that lower oil prices will diminish demand for alternative energy-related stocks, writes Hailey Lee for CNBC.

The West Texas Intermediate crude oil futures were at $55.9 per barrel and Brent crude dipped to $59.9 per barrel Tuesday, hovering around a five-year low.

Additionally, TSLA was weakening Tuesday after Tesla’s China president Veronica Wu resigned after 9 months, reports Doug Young for Altenergy Stocks. Some argue that the departure may reflect the slower-than-expected expansion in the Chinese market.

Meanwhile, the Market Vectors Global Alternative Energy ETF (NYSEArca: GEX), which includes a 9.8% weight toward TSLA, has declined 16.5% over the past three months while the First Trust NASDAQ Clean Edge Green Energy Index Fund (NasdaqGS: QCLN), which has a 8.0% tilt toward TSLA, decreased 18.2%. [Tesla Hampers These ETFs]