Tesla Releases IPO Details, Expects To Raise $185 Million
The end goal for most venture-capital financed start-ups is to issue an IPO and help get some money into the hands of those investors brave enough to give the company money at the early stages. Tesla Motors, perhaps the first Silicon Valley car company(and headed by Elon Musk, a former dot-com executive), is about to do just that, after filing papers with the Security and Exchange Commission, detailing terms of their IPO.
Tesla is expected to issue roughly 11 million shares of the company, with the shares going for $14 to $16 each. As a reward for the IPO, Toyota will invest another $50 million in the company, as part of an alliance between the two companies, which includes the NUMMI auto plant in California, and a new mass market sedan in 2012.
So far, Tesla only sells a 2 seat sports car, the Tesla Roadster, but the company plans to introduce a high end sedan, known as the Model S, in the near future. So far, Tesla has continually lost money each quarter, with total revenues of just under $150 million.
[Source: Detroit News]
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