US: Goldman analyst says Tesla needs $6 billion for advancements image

The industry analysts have hit the US electric automaker again, after a Morgan Stanley analyst called the company’s future in question with the advent of driverless cars.

Now, it’s time for a Goldman Sachs Group’s insider to cast a few dark clouds over the prospects of the company – which has been the most successful US startup in many years. Patrick Archambault said in a note that Tesla might need, according to his estimates on the company’s growth goals, at least $6 billion in capital for the next 11 years.

“With numerous projects laid out (as well as those not currently communicated) ahead for Tesla, we see a possible need for additional capital,” commented Archambault.

For the predictions to become relevant though, the cars built by Elon Musk’s company need to become “disruptive,” as the automaker is aiming to push production to 100,000 units in 2015 and wants to go up to more than 500,000 units annually soon. Under the popularity scenario, the Goldman Sachs analyst said that by 2025 Tesla’s production should reach 1.8 to 3.2 million vehicles per year, with the bulk of the estimates set for the 2017-2025 period. Following the note’s release, the shares dropped 1.7% to $259.32 at the close in New York on Friday. So far, Tesla’s stock has been up 72% through 2014.

Via Bloomberg