• May 3rd 2010 at 7:49PM
  • 12
Darryl Siry, who used to be CMO at Tesla Motors and is now CEO of NewsBasis, and so has a better-than-most insight into the situation, hears word that Tesla's upcoming IPO will go out for somewhere between $1 and $1.5 billion. This will mean that the opening price could be around $10-$12 a share, which is typical, he says, and follows a 1-for-3 reverse stock split that the board recently approved. After the split, there will be 100 million shares outstanding. While we can't know the future – and Tesla has a habit of doing things people don't expect – Siry writes:
All in all, while Tesla is a blockbuster brand and a much anticipated name on the street, it is unlikely to be a "blockbuster" IPO or cleantech's "Netscape moment". This one looks more like a public financing event that will provide the company with easy access to the additional funding they will need for the next few years to complete the Model S and gives existing investors an opportunity to get liquid after a pretty wild ride in the past few years.
What else might affect the IPO? The fact that Tesla CEO Elon Musk is going through a divorce trial that started today. Tesla spokesperson Ricardo Reyes told Venture Beat, "We don't expect the case to have an impact on the S-1 filing." But the divorce filing could impact Tesla (and Musk's other companies, Space X and SolarCity) because Musk could lose a "significant portion" of his Tesla shares to his wife (they separated in 2008) thanks to California's community property laws. Tesla's DOE loan could also go into default if Musk loses control of his shares. There are more details over at Venture Beat and you can find Musk's divorce filings after the jump, but this is one ride that's not over yet.

[Source: Darryl Siry, Venture Beat]

Case file: Elon and Justine Musk Divorce Trial -

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    • 1 Second Ago
      • 7 Months Ago
      At the bottom of page 1 under "Parties" Elon is listed as the Petitioner. I'm not a lawyer but I believe that means Elon was the one who filed for divorce, not his soon-to-be ex-wife.

      I'm not sure how smart Elon is but he seems to be good at playing his cards right so I'd bet he thought through, and probably got legal council on what the worst-case scenario is for Tesla, as well as Space X and SolarCity, during the "this is who-gets-what" session of the divorce.
      • 7 Months Ago
      If this world respected privacy, what people do in their private lives would remain between them and their families. Respect for family means respecting their privacy and obligation to determine for themselves how to deal with differences or bad faith.

      As it is in this world of yellow journalism and puritanical judgment - people think they have a right to judge the private lives of public figures. Eventually we may reach a mature enough state to refrain from judging - especially in matters of fidelity and marriage.

      Respect for privacy... aka "enlightenment."
      • 7 Months Ago
      no prenup?

      if he's gonna cheat he better have a massey prenup
      • 7 Months Ago
      I wouldn't touch this IPO with a ten foot pole.
      • 7 Months Ago
      If Telsa becomes a corporation, are they going to be purely about the bottom line and lose their sense of changing the world? Probably...
        • 7 Months Ago
        You are assuming they are not about the bottom line now. Musk did not take over tesla to NOT make money. He thinks he can make a killing in the EV field, yes he talks a good (green) game but he is a true capitalist. Nothing wrong with that.
      • 7 Months Ago
      Whyyyyyy do chicks always have to ruin anything that has to do with new cars!?
        • 7 Months Ago
        Look up some reports . . . his behavior was pretty reprehensible. Getting a divorce happens . . . but his behavior . . . well . .
      • 7 Months Ago
      • 7 Months Ago
      The lesson here: don't marry if you plan to be a successful CEO and do a billion$ IPO.

      Seriously, do we need to see the divorce filing papers? Leave this stuff to the Perez Hilton.
      • 7 Months Ago
      Wonder how much of the achievement of Musk's companies is directly attributable to the wife? Community property should evaluate direct contributions from each partner - not an award of half everything just cause its a significant other. Coddling partners in these marriages is another form of welfare.
      • 7 Months Ago
      If Tesla loses the DOE funding, they are screwed. The IPO would have to float the Model S launch as well as the next gen projects, and that would be a hard sell without the stability provided by the DOE loan.

      I don't know why the guy got remarried to begin with - his first wife, and mother of his 5 boys, left him because he was consumed by his business ventures.

      It would be a damn shame to see Tesla fail, after all they've been through, because dear Elon couldn't keep it zipped.