Tesla IPO Launches Unexpectedly High at $17/Share, Company is Worth $1.33B USD
June 29, 2010 3:05 PM
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.
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
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
Tesla will announce electric lorry in September
April 19, 2017, 6:20 AM
Dubai announces passenger drone plans.
February 14, 2017, 7:56 AM
Lucky LA Residence
January 28, 2017, 4:00 AM
Debuted at CES 2017 - Corning Gorilla Glass Concept Car
January 7, 2017, 3:02 AM
Happy, healthy and feastive New Year to you and everyone in the world that about to celebrate the Season Holidays
January 1, 2017, 12:01 AM
In 2017, Here are the New Autos of 2018
December 30, 2016, 5:00 AM
Most Popular Articles
Surface Pro 5 Rumors - New Release Date and Price
April 22, 2017, 6:45 AM
ASUS RT-AC5300 – Ultimate Game & 4K Streaming
April 18, 2017, 7:45 AM
Dell Inspiron 17 7000 – A Premium Laptop featuring 7th Gen Intel Core i7 in a 2-in-1 Frame.
April 19, 2017, 7:45 AM
Meet the Smartphone with four cameras - Alcatel Flashphone
April 5, 2017, 11:20 AM
Vivo V5 Plus – the Selfie Softlight is on You.
April 17, 2017, 7:05 AM
Latest Blog Posts
Samsung Galaxy S8 and S8 Plus – Lots of Glass that Breaks Easily
Apr 25, 2017, 7:20 AM
Samsung Galaxy S8 – Warning for Pet Owners
Apr 24, 2017, 5:59 AM
Sound Bars and the Costs?
Apr 23, 2017, 6:30 AM
Link your Brain to Your Computer – In Four Years…Maybe
Apr 22, 2017, 7:03 AM
Google Home can now identify users by their voice.
Apr 21, 2017, 7:15 AM
Amazon Lex – Now Available for Developers.
Apr 20, 2017, 6:58 AM
You can now use Instagram offline on your Android Smartphone
Apr 19, 2017, 8:00 AM
Now you can livestream to YouTube from your mobile device.
Apr 18, 2017, 8:05 AM
Google Home – Is It a Spy Device?
Apr 17, 2017, 7:30 AM
Apple added to self –driving test permit list
Apr 15, 2017, 6:21 AM
Project Scorpio – Coming on June 11
Apr 14, 2017, 6:20 AM
Looks Like Samsung Has Been Forgiven.
Apr 13, 2017, 6:50 AM
United Airlines - Blasted on China’s Social Network and the Stock Market
Apr 12, 2017, 6:50 AM
Amazon's Third-Party Sellers Hacked
Apr 11, 2017, 6:25 AM
Microsoft Surface Pro5 Details Revealed
Apr 9, 2017, 6:41 AM
Own An Android Phone? Then you could be hacked over Wi-FI
Apr 7, 2017, 6:47 AM
Apple confirms iOS 10.3 bug and its effect on iCloud Services
Apr 6, 2017, 6:30 AM
Apple Rolls Out New Version of Apple Music
Apr 5, 2017, 10:35 AM
Apple in the News
Apr 4, 2017, 9:03 AM
Apple iPhones Will Soon Feature Graphics Chips Designed BY Apple
Apr 3, 2017, 6:23 AM
AMD Ryzen Desktop Processors Performance
Apr 2, 2017, 6:30 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information