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Tesla Drops as Goldman Says $6 Billion Needed for Growth

Tesla Motors Inc. fell after a Goldman Sachs Group Inc. analyst said the company may need at least $6 billion in capital, most of it over the next 11 years, if its electric car becomes a “disruptive” product.

The automaker led by Elon Musk is targeting production of 100,000 premium electric cars by late next year and has an eventual goal to sell at least 500,000 cars annually. The capital may be needed to fund growth if Tesla’s vehicles prove to be as popular as Apple Inc.’s iPhone or Ford Motor Co.’s Model T. Under such scenarios, production would range from 1.8 million a year to 3.2 million a year by 2025, Patrick Archambault, an analyst at Goldman Sachs, wrote today in a note.