According to the financial overlords of Goldman Sachs, Tesla would need an $6 billion in capital within the next 11 years should its products become truly disruptive to the automotive industry.
Per Bloomberg, Goldman Sachs analyst Patrick Archambault delivered that number to his employer's clients Wednesday, based on what he believes would be needed should Tesla's electric lineup prove as popular as the iPhone 6 or Model T. The proclamation knocked the automaker's shares down 1.7 percent to $259.32 on the trading floor in New York at the final bell.
Though Tesla CEO Elon Musk plans to sell a minimum of 500,000 units per year down the road, Archambault claims the capital needed would push annual production from 1.8 million to 3.2 million units by 2025. Other projects, such as the upcoming Gigafactory battery pack plant in Reno, Nev., would also need some of the projected $6 billion in additional capital. He adds that most of the $6 billion would be distributed from 2017 through 2025.
Meanwhile, Tesla has not given its own forecast for capital spending, according to representative Simon Sproule.
The post Goldman Sachs: Tesla Needs $6B In Capital To Meet "Disruptive" Growth appeared first on The Truth About Cars.
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