According to a recent article that was spiraling online, UBS analyst Colin Langan has predicted that Tesla will have to invest up to another additional $8 billion in its network of high-speed charging stations. However, this will just be in the U.S. alone, if it truly intends to make recharging a car as convenient as filling up the gas tank.
The article has further quoted Langan's research note, stating that "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."
About Langan's Predictions
Langan is a known bear on Tesla stock, yet there haven't been any comments towards Langan's motivations behind the data and analysis on Tesla. But 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."
The Drawback With Langan's Prediction
Many analysts believe that there are a lot of things wrong in Langan's Picture. Langan's model and assumptions are similarly flawed much like those that have been made way back in 1998-1999, during the dotcom bubble.
Langan's Prediction Is Flawed
Many analysts also believe that projections much like Langan's are a spreadsheet exercise where the math is not the true problem, but the underlying assumptions actually possess little basis in reality. This simply means that Langan's projection, though a possibility, is extremely hard to be incorporated into reality.
Tesla's Money-Spending Situation
According to Barron's, Tesla needs to spend a lot of money in order to keep growing as a super power company. It currently has the upcoming Model 3 launch, the build out of its GigaFactory, and energy storage business, as well as plans for more cars which includes a possible pickup truck. Tesla has a lot of plans for its future, which is why it needs to spend a lot of money in order for this aspiration to come to fruition.