Follow us on Twitter Follow us on Facebook View our linked in profile View our RSS feeds
SustainableBusiness.com
 
News
Your daily source for sustainable business & sustainable investor news.

(view sample issue)


This is an archived story. The information and any links may no longer be accurate.

06/23/2010 10:54 AM     print story email story  

Tesla Motors Schedules IPO for June 29

SustainableBusiness.com News

Electric car company Tesla Motors plans to begin selling shares on the Nasdaq under the symbol TSLA on June 29, according to numerous reports.

The company originally planned an IPO for fall 2008, but the global financial crisis put those plans on hold. Since then, Tesla has acquired U.S. Department of Energy funding to build its Model S sedan--a follow-up to the company's two-seater Roadster, which sells for $109,000. 

Tesla has also attracted investments from auto industry heavyweights Daimler (NYSE: DAI) and Toyota (NYSE: TM). 

Tesla aims to sell 11.1 million shares between $14 and $16 each to raise about $177 million. Some analysts suggest the price might be high for a company that has recorded only one profitable quarter--especially considering other cleantech companies Solyndra and Xinjiang Goldwind Science & Technology recently withdrew IPO plans due to unwelcoming market conditions. 

But Tesla has built a high profile in recent years that could give its shares a surge out of the gate.

CEO Elon Musk has been travelling around the country giving pre-IPO pitches to investors. The website Jalopnik.com spoke with an attendee of one of the pitch sessions, who questioned the company's viability.

Mike Omotoso, senior manager for J.D. Power and Associates’ Global Powertrain division, told earth2tech that a best case scenario for Tesla would be an oversubscribed IPO that could boost sales of the Roadster and raise much-needed cash. 

But Omotoso also warns of a worst case scenario where prices drop, the Toyota deal falls through and the company is gone in a couple of years.

Read that story at the link below.

Website: earth2tech.com/2010/06/22/tesla-ipo-will-tesla-see-a-powerhouse-public-offering/



Reader Comments (0)

Add Your Comment

(Use any name, your real name is not required)
Type the characters you see in the picture below.

home |about us |contact us |advertise |feeds |privacy policy |disclosure

Compare Green Cars   |   Find Alternative Fueling Stations