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Summary:

Electric vehicle startup Tesla Motors has set the terms of its long-awaited IPO at between $14 and $16 each. Combined with a private placement, that means Tesla could raise up to $185 million.

Electric vehicle startup Tesla Motors has set the terms of its long-awaited IPO and is looking to raise substantially more than it previously estimated. Tesla is looking to sell 11.1 million common shares at between $14 and $16 each, and estimates it will raise as much as $185 million, up from the roughly $100 million it said it hoped to raise back in January.

Tesla will also sell $50 million worth of shares to Toyota in a private placement (that deal was announced back in May). The offering will give Tesla a market cap of $1.46 billion. The comapny will hit the public markets under the symbol TSLA in what could be the biggest and possibly the first public offering for a U.S. car company since Ford Motor’s IPO more than 50 years ago.

Boosting its expectations for the offering is an aggressive move in this climate, given other companies eying the public markets in recent months have more often downsized their offerings. Likely Tesla’s Toyota deal — despite the fact that the ties between the two companies are actually very limited at this point — will give investors a lot more confidence in the IPO. Tesla has also managed to win approval for a $465 million in low-interest direct loans (announced a year ago) from the Department of Energy under the Advanced Technology Vehicle Manufacturing Program.

However, Tesla has never generated a profit and doesn’t expect to do so until “significant deliveries” of the Model S (its next-generation sedan) begin in 2012, at the earliest. Since its founding through March 31, 2010, Tesla generated $147.6 million in revenue with an accumulated deficit of $290.2 million. Tesla has raised over $200 million from investors including Draper Fisher Jurvetson, Daimler and Vantage Point Venture Partners.

For more research on electric vehicles check out GigaOM Pro (subscription required):

IT Opportunities in Electric Vehicle Managament

By Katie Fehrenbacher
  1. You said it all with the line “deal was announced” I haven’t seen the headline that says “deal has been signed’. I don’t see how an ipo happens without that.

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  2. [...] at $1.5B and seeking to raise $167M from the public and another $50M from Toyota. This is an increase from their expectations back in January when they first filed. Unlike Ford, which was profitable very quickly, Tesla has yet to [...]

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  3. [...] Tesla Sets IPO Terms, Now Expects to Raise $185M [...]

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  4. [...] Other greentech companies that have withdrawn IPO plans in recent months include geothermal developer Nobao Renewable Energy and amorphous-silicon solar panel maker Trony Solar. But while other companies have downsized or canceled IPOs in recent months, Tesla made a characteristically aggressive move last week to boost expectations for its offering. [...]

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  5. [...] Other greentech companies that have withdrawn IPO plans in recent months include geothermal developer Nobao Renewable Energy and amorphous-silicon solar panel maker Trony Solar. But while other companies have downsized or canceled IPOs in recent months, Tesla made a characteristically aggressive move last week to boost expectations for its offering. [...]

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