$100 Millions IPO Filed By Tesla Motors

$100 Millions IPO Filed By Tesla Motors

1st February 2010

Papers have been filed by Tesla Motors, in order to go public on Friday. The company has betted that it was the right time to raise $100 on the stock market from investors, who were eager to get a share of the nascent electric-vehicle market. Silicon Valley Company of high profile has said that it has planned to use the proceeds from an initial public offering to continue manufacturing versions of its all-electric Roadster sports car and build model S, a luxury Sedan.

Tesla has indicated in its prospectus that it has already sold 937 Roadsters and has make $93.3 million through the first nine months of 2009. The balance sheet of the company has shown that it has build up a stockholder deficit of $230 million. The poor financial environment over the past year and a half had derailed the plans of going public.

To date, the 7-year old company has raised money from venture capital firms and has taken an investment from Daimler. In addition to making its own cars, Tesla has intended to build power trains for other automakers, including Daimler. With the loan and proceeds of any IPO, Tesla has anticipated that it will start making the Model S in 2012 and ramp up to 20,000 units by the end of 2013.