Tesla needs at least $8 billion to make rechargeable cars a reality, says UBS analyst

Tesla needs a whopping $8 billion to make rechargeable cars a reality in the United States only.


We all know that one of the biggest plans that the American automaker, energy storage company, Tesla, is working on is the rechargeable cars. Recently, UBS analyst Colin Langan predicted the amount of money Tesla will actually need to make it a reality. It is a whopping $8 billion only for the execution of this futuristic feature in the United States. Moreover, the company intends to make recharging of cars as convenient as filling up the gas tank, so one can guess the amount Tesla will need for the project.

The article by Langdon further said, "geospatial imaging of the U.S. suggests that Tesla will have to add about 30,000 new superchargers in order to compete with the network of gas stations all across the country, at an estimated cost of $250,000 per station."

According to Clean Technica, "Langan's latest note reiterates a sell rating on the stock, with an estimated $160 price target. Tesla shares were recently trading at $250.56 on Friday afternoon, March 3, 2017."

After the Langan report started making the rounds, other analysts, who came into the scenario, said that there are plenty of things wrong in the report and the assumptions are flawed. Other analysts think that it's like a spreadsheet exercise where the math is not the actual problem, but the assumptions, which have little basis in reality. It means that Langan's projection is definitely a possibility, but it is extremely hard to be incorporated into reality.

However, Tesla will have to spend a lot of money in order to keep growing as a super company; to actually execute the future plans that it holds, says Barron's.

Right now the company is busy with the upcoming launch of the Model 3, which is a product from its GigaFactory. The company is also planning for more cars which include a possible pickup truck.

This article was first published on March 7, 2017