Report: Elon Musk made at least $15 million from Tesla’s IPO

Article by Christian Andrei, on August 29, 2010

Tesla Motors Inc. raised at least $15 million from its initial public offering. CEO Elon Musk said that it has started to restore some of what was staked on the company and other startups.

Tesla set a price of $17 per share and Musk sold 908,958 shares. Last Tuesday, Tesla stock rose by about 41% -- the second-biggest rally for a US IPO.

Last February, Musk said that he possessed $650,000 in liquid assets and that he got loans from friends to pay fees and support for estranged wife Justine Musk. Musk had actually gained about $300 million from selling PayPal Inc. and Zip2 Corp.

Based on last Tuesday's $23.89 closing price on the first day of Nasdaq Stock Market trading, the value of Musk's remaining Tesla stake had gone up to $654.5 million. Bloomberg gave the $15 million estimate for the sale of Musk's shares.

Tesla is reportedly using proceeds from the IPO to start producing the battery-powered Model S sedan and to develop a range of rechargeable models.

Aside from its celebrity customers, Tesla investors include Daimler AG. Last May, Toyota Motor Corp. had revealed a plan to buy a $50 million stake.

Topics: tesla, ipo, united states

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