Despite never turning a profit and selling as few as just 1,000 vehicles, Silicon Valley electric car maker Tesla Motors has raised $226 million in an initial public offering. Even more amazing is the fact that Tesla was able to generate such investment in the midst of a still shaky economic recovery that has seen dozens of other companies postpone IPOs.
Tesla has said it will use the funds to, generated by selling 13.3 million shares at $17 each, to build factories and possibly acquire new assets as it looks to introduce its second vehicle, the Model S, to market.
Company CEO Elon Musk, who founded Tesla in 2003, has risked his personal fortune on the startup automaker, after making $300 million by selling off PayPal and Zip2 Corp.
Other investors in Tesla include powerful names and companies including Toyota, Daimler, the government of Abu Dhabi, as well as Google founders Larry Page and Sergey Brin. The company has also received significant support from the Obama administration, with a Department of Energy loan totaling $465 million granted as a part of a larger plan to get 1 million electric cars and pug-in hybrids on the roads by 2015.
[Source: Automotive News]