Tesla IPO Launches Unexpectedly High at $17/Share, Company is Worth $1.33B USD
June 29, 2010 3:05 PM
comment(s) - last by
Tesla's upcoming Model S entry-level luxury EV
The Tesla Roadster
(Source: Drag Times)
IPO gives electric vehicle startup plenty of cash to work with
A vital chapter in Tesla Motors' history has now been written, with the company's first public stock offering. The epic success should help Tesla flourish in the short term and help its financially troubled founder, as well.
The stock release comes as the company prepares its entry-level Model S luxury sedan to bring electric vehicles to the masses. The compan also is working on plans for a
, which is being phased out, an electric SUV/crossover, and an electric van.
Propelled by these ambitious plans the company's
entrance into the world of public trading
proved an emphatic success. The company raised over $226M USD from share purchases. Shares, which were expected to sell from between $14 and $16 sold for approximately $17. Additionally, where initially the company planned to release around 11.1 million shares, it was able to offer 13.3 million shares at this higher cost.
The initial public offering was the first for a U.S. automaker since Ford Motor Co. in 1956. That IPO was
with 10.2 million shares sold, raising nearly $660 million (in 1956 dollars).
Still the Tesla Motors IPO was a tremendous success and should give the young company the money it needs to thrive. Tesla initially expected to get less than half of the sum it pulled in, initially seeking only $100M USD from stock purchases.
The IPO will also prove vital to Tesla Motors founder and CEO Elon Musk. Musk says he's
virtually out of money
. Musk, who invested $70M USD in Tesla, sold 909,212 shares raising $15.3M USD in much-needed cash.
His stake now drops from 36 percent to 28 percent after his sale. It should be noted that Tesla Motors as a whole only unloaded 17 percent of its shares to the public. That means that it is still primarily held by private owners -- the largest of which is Musk.
That also means that Tesla is now valued at roughly $1.33B USD, based on the price of publicly traded shares.
Stock has since risen to over
$21.50 a share
, earning those who purchased it initially, a healthy 25 percent gain. That price will likely drop somewhat on profit taking, but its certainly a promising sign for this new star.
This article is over a month old, voting and posting comments is disabled
RE: The bottom line on Tesla...
6/29/2010 6:06:55 PM
And don't forget their deal with Daimler.
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
Tesla Reveals Three New Upcoming Vehicles in Preparation for IPO
June 22, 2010, 11:01 AM
Study: EV Adoption Will Increase China's Emissions; Tesla Motors CEO is Broke
May 31, 2010, 6:03 PM
Tesla Adjusts Roadster Production Schedule, Sales Will Continue Through 2012
March 15, 2010, 8:07 AM
Tesla Motors to File IPO, First Gen Roadster Production Ends in 2011
January 31, 2010, 4:15 PM
Report: Vehicle-to-Vehicle Communications Could Make New Cars, Trucks Costly
March 13, 2014, 7:19 PM
BMW: Demand for i8 Hybrid Sports Car Outpaces Production
March 13, 2014, 10:08 AM
Toyota's Takeshi Uchiyamada Says Hybrids Will Soon Have 20% Global Share
March 13, 2014, 9:24 AM
Tesla Loses Out in New Jersey's Vote for Direct Auto Sales Ban
March 12, 2014, 12:44 PM
Bids Sought to Build New Presidential Limo
March 12, 2014, 10:21 AM
Audi Traffic Light Recognition System Hopes to Save Fuel
March 11, 2014, 9:54 AM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Windows 8.1 Update 1 Leaked Early
March 7, 2014, 9:30 AM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Vine Users No Longer Allowed to Post Pornographic Videos
March 7, 2014, 1:47 PM
Staples Closing 225 Stores Across North America
March 7, 2014, 1:24 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information