Now that electric car startup Tesla priced the range for its IPO last week, and could raise $185 million, you might be wondering what Tesla intends to use all those funds for? Well, while most of the funds will go for manufacturing of its next-gen car the Model S, Tesla also says in its latest filing that it “may also use a portion of the net proceeds to potentially expand our current business through acquisitions of complementary businesses, products or technologies.”
Tesla currently doesn’t currently have any acquisition agreements, according to the filing, but there are significant amount of electric car startups out there that could make good candidates, like Coda Automotive, Bright Automotive, or even the former Tesla tech makers over at AC Propulsion (who do you think Tesla should buy, add your thoughts into the comment section).
Here’s some of the other things Tesla intends to spend the money from the offering on according to its filing:
- At least half (a maximum of $100 million) of the net proceeds of the offering and private placement will be put aside for potential overruns in cost for its powertrain and Model S manufacturing facility projects.
- Potentially $33 million in costs related to the development of our Model S and our planned Model S manufacturing facility.
- Tesla says “We currently anticipate making aggregate capital expenditures of between $100 million and $125 million
during the year ended December 31, 2010”
- $42 million to purchase our planned Tesla manufacturing facility for the Model S in Fremont, California, excluding any manufacturing equipment we may subsequently acquire.
- Tesla also expects to use a portion of the net proceeds to fund expansion of Tesla stores, which it estimates will cost “approximately $5 million during the year ended December 31, 2010 and an additional $5 million to $10 million annually over the next several years thereafter to establish approximately 50 stores globally.”