To expand its production line, Tesla would need an additional capital investment of $6 billion, a Wall Street analyst said.
Tesla CEO Elon Musk announced last month the plans to build a new battery factory to meet the targeted goal of 100,000 EVs in the next year. The long term goal plans to roll out 500,000 cars annually. In 2013, the car company said it would produce 21,500 sedans, reported by the San Francisco Chronicle.
If Tesla wants to mimic the popularity of Apple’s iPhone or Ford’s Model T, the company must produce 1.8 million a year to 3.2 million vehicles a year by 2025, according to a Bloomberg report.
“With numerous projects laid out (as well as those not currently communicated) ahead for Tesla, we see a possible need for additional capital,” said Patrick Archambault, Goldman Sachs analyst.
JPMorgan Chase and Morgan Stanley also contributed to the dipping stock.
JPMorgan suggested proceeding with caution when it comes to Tesla due to uncertainty of steel, nickel and copper prices.
Tesla released a statement not about its declining stocks, but a new software update for its Model S. Owners of the car will be able to get route suggestions based on real-time traffic, get commuting advice, synch their smart phones to the car to look up the daily calendar, and a handful of other special features.