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Tesla Model S
Tesla may raise as much as $180 million

One of the most recognizable names in the burgeoning electric car market is Tesla. The company has been offering its Roadster since 2008. The Roadster is positioned as a luxury sports car with performance capable of matching that of some combustion engine powered sports cars.

MarketWatch reports today that the Tesla IPO is set to start on June 29 (it announced its intent to file an IPO back in January). The company plans to offer 11.1 million shares at a price of $14 to $16 per share. As soon as the IPO starts, Tesla has agreed to sell $50 million of its stock to Toyota. It was also revealed that Tesla is purchasing the idled NUMMI auto manufacturing facility, located in Fremont, California, for $42 million.

Tesla will trade with the ticker symbol TSLA. The SEC filing that Tesla filed lists shareholders with more than 5% ownership in the company including Elon Musk, Al Wahada Capital Investment LLC, Blackstar Investco LLC, VantagePoint Venture Partners, and Valor Equity Partners.

Tesla was also granted a $465 million loan by the U.S. Energy Department this year. So far, Tesla has drawn over $45 million in funds from that loan reports 
MarketWatch as of June 14. Tesla's IPO is set to raise as much as $180 million, much more than Tesla stated it would raise in January.

In May, Tesla announced a broad partnership with Toyota – the pair is teaming to produce electric vehicles at the NUMMI plant.



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I like the roadster and model S, however...
By quiksilvr on 6/16/2010 10:04:09 AM , Rating: 4
When you think big, you need a big investment in the beginning. Tesla played a very dangerous game and was very lucky to have gotten any loans whatsoever.

All I wan't to see is a 4 door sedan that looks like a car (sorry, I don't like the look of the LEAF), gives me a 200 mile range and a $20-$30k price tag.




RE: I like the roadster and model S, however...
By Dr of crap on 6/16/2010 10:17:37 AM , Rating: 3
I agree!
I like the fact that Tesla did this and has a car that has proven battery cars can go fast and far.
Now lets make it so everyone can get one!
Anything over $25K is to much!
The Leaf is close.
And it's stlying could be better.
After all the skys the limit. No need for the front grill or any of the other conventional things that cars need with ICE's.


RE: I like the roadster and model S, however...
By zmatt on 6/16/2010 10:37:18 AM , Rating: 2
I'm in agreement with everything said here. if you can make an electric sedan that costs as much, looks like and performs similar to a Camry you have the market clinched. On a semi related note, anyone else considering buying stock in these guys?


RE: I like the roadster and model S, however...
By ksherman on 6/16/2010 11:51:41 AM , Rating: 2
I'm thinking about picking up 1,000 shares or so at the IPO, sell off a portion and hang on to some for the long haul. I don't have very much money hanging around, so I can't keep $1,400-1,600 tied up for very long :(

The NUMMI plant in California is a pretty spectacular plant with an interesting history. Fitting that Tesla will be taking it over.


By ksherman on 6/16/2010 11:58:04 AM , Rating: 2
Though this is assuming I can figure out how to get in on the IPO right at the onset...


RE: I like the roadster and model S, however...
By tharik on 6/16/2010 12:25:38 PM , Rating: 2
1000 shares at 14 to 16 dollars is more than $1,400 to $1,600


By ksherman on 6/16/2010 12:33:07 PM , Rating: 2
Yeah, math fail. lol. Long day :-P


RE: I like the roadster and model S, however...
By MozeeToby on 6/16/2010 10:46:25 AM , Rating: 2
Their business plan was pretty brilliant, it acknowledged all the technical obstacles and popular misconceptions while still finding a way to be profitable and giving them tons of automatic press. Don't know if the stumbled onto it or planned it from the beginning but either way it was just about the only way for a start up electric car manufacturer to succeed.

Like you said, now they just need to get it down to the point where they don't need to market them as a luxury car anymore. I think the next step could be a FWD rally style car for around 30-35k though. That's cheap enough that the gas savings will cover the additional cost, and still gets to take advantage of all the R&D they've done in building performance vehicles.


RE: I like the roadster and model S, however...
By zmatt on 6/16/2010 10:50:01 AM , Rating: 2
Like a focus rs kind of thing? Hmmm, 300hp fwd that doesn't burn a hole in your wallet, but still tries to kill you. count me in!


RE: I like the roadster and model S, however...
By Connoisseur on 6/16/2010 2:04:43 PM , Rating: 2
is there any particular reason any all electric car would need to be FWD? It's not like they have to worry about transmission costs.


By arthur449 on 6/19/2010 4:07:17 AM , Rating: 2
Cheaper. Lighter.

FWD vehicles don't require as much reinforcement of the unibody frame.


RE: I like the roadster and model S, however...
By Reclaimer77 on 6/16/2010 11:19:12 AM , Rating: 1
Half a billion in government bailout, err "loan" money isn't what I would call an "investment". In times of economic crisis, that kind of money going to a product that the huge majority of Americans will never benefit from, doesn't make sense to me.

I don't know, maybe it's just me. But I don't see the point in Tesla. Super limited and highly expensive sports cars, that just happen to be electric. What benefits does it bring to the table over the same priced gas powered sports cars?

Tesla is selling a status symbol. And I just don't understand why our Government needs to get involved to subsidize a social movement.


RE: I like the roadster and model S, however...
By ksherman on 6/16/2010 11:48:42 AM , Rating: 2
Because it allows Tesla to develop and refine a high quality car, then develop a more affordable version using all the stuff they learned.

Seriously, how many times have you heard of this start up or that start up with a "Truly affordable" and "Alternative Energy" phrase stamped to it, but never being released?

Tesla started big, started expensive, started fast to appeal to the right people that would for over $100,000+ for a status symbol. This means they didn't have to START looking at every possible way to cut costs at the expense of development.

This could be the foundation of an excellent, high quality and eventually affordable line of electric cars.

Sprinkle in Nuclear power, and we have a dance!

I for one am considering jumping in the IPO. Might be able to make some money this summer.


By zmatt on 6/16/2010 12:12:45 PM , Rating: 2
best friend's uncle has one, he is a banker. Great car. He dailies it quite often. When you see startup car companies now they always start with a super car. because you cant make a low volume anything else and have a reasonable cost for it. How many small time econobox companies can you think of? How many small time sports car ones can you think of? I can think of a lot. Elon Musk isn't a fool, he knows that a lot of people will pay the high entry cost to join the green super car club. Those people have a lot of disposable income, the green economy car club however costs as much as a midsize and has no market right now. It's baby steps.


By Reclaimer77 on 6/16/2010 3:17:00 PM , Rating: 2
quote:
This could be the foundation of an excellent, high quality and eventually affordable line of electric cars.


Who in the hell want's that? Batteries are for toys. And where do you people think that electricity comes from? Fossil fuels mostly. Tesla's are landfill queens, they don't reduce pollution, they just shift the pollution to a different area.

I can stop and fill up my car anywhere at any time. Electric simply isn't ready yet, it's being FORCED on the market by Government "loans". We need some serious Iron Man Star Trek type advancements before electric is really ready for prime time in everyone's garage.

All Tesla proves is there are enough idiots willing to plop down 100+k to be different. Well, big deal. It's laughable that you think somehow this will lead to a breakthrough. Tesla isn't an R&D firm. They didn't develop this technology, they are just throwing it in fancy cars.


RE: I like the roadster and model S, however...
By tdktank59 on 6/16/2010 12:30:56 PM , Rating: 2
well a few things:

1) It was coming into a market dominated by economic gas saving vehicles (prius, insight, etc...) So it did it diffrently and went all electric instead of hybrid.

2) Instant constant torque to say the least. Its a sports car, it may not be practical for everyone but to those sports car people or mid-life crisis people these cars will be fun to drive. Could you imagine feeling all 300 ft lbs of torque the instant you push the pedal up until the point your about to shift?

3) Less power loss to transfer to the wheel. Unlike tradition engines this has electric motors which are super efficient compared to traditional motors.

4) Less pollution, is always better but the fact that you can have fun while producing less is what makes it worthwhile to me. Priuses and stuff are crap as far as performance goes.

Mind you price is defiantly an issue, if I had the extra cash laying around for one I would get one in an instant (tesla roadster). Then id install some solar panels on my house to help reduce my overall electricity from the grid since I would be drawing more for the car.

Yes its not practical for most people, but as far as benefits it has tons.


By Spuke on 6/17/2010 2:38:54 PM , Rating: 2
quote:
Could you imagine feeling all 300 ft lbs of torque the instant you push the pedal up until the point your about to shift?
You won't because no tire made on this planet can put down 300 lb-ft (or even 200 lb-ft) at 0 rpm. All it results in is tire spin and little acceleration. While you're doing that my piddly 260 lb-ft @ 2500 rpm car shoots right past you. Power is nothing if you can't get it to the ground. Ask ANYONE with a high hp car and two drive wheels.

What happens is the traction control kicks in limiting torque to something the tires and chassis can handle which totally defeats the purpose of having 300 lb-ft at 0 rpm. If you could put that power down, the Tesla would be seriously fast but you can't. It still manages a 12.9@102 regardless (Tesla Sport) which, oddly, is one mph slower than the regular Tesla (according to Car and Driver).

For the price though ($130k base), you can buy a MUCH quicker car. Hell, you can match the performance for much cheaper. But I'd imagine their customers don't buy one cause it's fast, they buy it because it's different or they're trying to make a statement.


"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard














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