• Jun 15, 2010
Tesla Model S – Click above for high-res image

It looks like Tesla Motors will finally be going public the week of June 28, if a report in the Wall Street Journal is correct. The long anticipated stock offering was originally planned for the fall of 2008, but the global financial melt-down made that impossible. Tesla is hoping to sell 11.1 million shares at a price of $14 to $16 a share for a total take of up to $178 million.

The share offering must happen sometime this year under the terms of the recent agreement between Tesla and Toyota if the Japanese automaker is to proceed with its plan to invest $50 million in the California-based electric car maker. At $15 per share, Toyota would get about 3.3 percent of the company or about one-third of what Daimler got last year for a similar investment.

Aside from a single month in July 2009, Tesla has never turned a profit in its seven-year existence and is unlikely to do so until after the Model S goes on sale, now expected to happen in 2012. As of March 31, 2010, Tesla sold 1,063 Roadsters and there is no longer a waiting list for the electric sports car. Tesla officials have declined comment on the IPO report.



[Source: Wall Street Journal]


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  • 15 Comments
      • 4 Years Ago
      You usually want to invest money into income streams, at least that's what the value investment books teach me. So, I would think this stock is about $14 dollars over it's true worth.

      Anyways, I hope Tesla exceeds. The sedan looks great.
        • 4 Years Ago
        IPO are always undervalued at first. Only select people can get into IPOs like large investment forums and mutual fund companies. Although Most stock, when issued in the secondary market jumps in value it eventually goes flat on its face. I hope this is not the case for Tesla, which to my understanding is already having massive financial difficulty. They have not posted profits yet and they have been out a while. This is something I would stay away from personally.
      • 4 Years Ago
      Not knowing a lot about the details of this IPO it just seems like fanciful thinking to me. They barely sold 1000 of those $100K roadsters, and unlike Ferraris there isn't even a wait list now even given Tesla's very limited production capabilities. The "more mainstream" sedan is still 2 years away (or so they say), but its market success is far from certain since it will have to compete with Fiskers and Mercedes/BMWs in that segment. Oh yeah, it will owe Uncle Sam a cool half billion in loans, and Uncle Sam (being a debt holder) gets to collect before the equity (stock) holders if the company ever goes belly-up. I just don't get it. Must be the current investors itching to get out. The idea of a high-performance electric car is cool, but Tesla isn't the only company that can deliver such a car when it doesn't even develop/make the most critical components like battery/chassis/electric motor...
        • 4 Years Ago
        Agreed. This smacks of Musk trying to cash in his ownership.
      • 4 Years Ago
      I'm buying Hyundai.
      • 4 Years Ago
      When copious amounts of oil in the gulf is destroying so much life, our food supply and billions lost and no solution to the problem is sight with an overall damage control in the end surly costing trillions, I wouldn't laugh at and brush off an electric car company so quickly. Dirty American coal powered electricity is starting to look pretty good. Not to mention that electric cars are around 85% efficient and the most efficient turbo diesel might be able to hit 25%, but most cars are a lot less efficient with energy creating heat and very little actually making the car go.

      • 4 Years Ago
      Make money on Tesla. Short it.
      • 4 Years Ago
      This is an attempt to dump the Company that was built on hopes, dreams, smoke and mirrors. Daimler doesn't want it and I doubt Toyota does either, they both have access to electric/hybrid tech of their own especially Daimler since hooking up with Renault/Nissan
      **Cough** **Cough**.......LEAF.

      Toyota is just involved to try and rid the Nummi plant.

      Smoke and mirrors.

      Musk is broke and he wants out...or some stupid private equity company to take a controlling interest and run it into the ground on their own watch.




      • 4 Years Ago
      Isn't it generally a good idea to invest in companies that are financially VIABLE? Like, given recent history, would anyone really think that giving Elon Musk their money is a GOOD idea?
        • 4 Years Ago
        @bssplayr : I agree. IPOs are generally very risky for individual investors, and Musk doesn't inspire much confidence.
      • 4 Years Ago
      I often worry that people only invest for the sake of monetary profits. Whatever happened to putting your money where your mouth is? Investing in what you believe in ethically or spiritually is important too. Maybe Tesla is a risky investment if you want to make a bundle. But if you want to support green technology or beautiful engineering then Tesla looks pretty good. Profit is not the holy grail of life. Nor is it the only reason to invest in something. And investing in companies that have practices that go against your belief system or in companies that do wrong makes you an accomplice in their foul deeds. Everything has a cost. It is just not always accurately reflected in the immediate price.
        • 4 Years Ago
        "I often worry that people only invest for the sake of monetary profits."

        Pardon me for asking, but why else would you invest if you were not seeking a return on your investment? Giving money to an unprofitable electric car company because you believe in their mission is not investing, it's charity. If you're going to give your money to charity, there are people out there much needier than Elon Musk.

        Markets exist to allocate capital to well run companies that will presumably turn a profit, not those who who are doing the most good for society.
      • 4 Years Ago
      I predict that a lot of "Rah rah California, down with Detroit" pro-California residents will lose a lot of money over the next few months.
      • 4 Years Ago
      If I were a portfolio manager, I would get in on this and then sell in the secondary markets immediately if I go in at all. I have a feeling that this will be like most IPOs..... I terrible investment. They are already having financial difficulty. As a private investor I wont touch this with a ten foot pole.
      • 4 Years Ago
      My learnings in the investment game is that 90% of investors are stupid. That said, I see this taking off quickly then settling in a month or so. Kind of like the net banks a decade or so ago.
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