According to a filing Tesla Motors Inc. submitted to the Securities and Exchange Commission, it will raise the number of shares that it will sell in its initial public offering by 20%.
This IPO marks the first time that a US automaker will do so in about 50 years. The last time that an American car company went public was in 1956 with Ford Motor Co.
Tesla is an electric sports-car company that lists Brad Pitt and George Clooney as two of its customers who bought the $109,000 electric Roadster.
The SEC filing revealed that Tesla will now offer 13.3 million shares at $14 to $16 each, a marked increase from the initial plan to sell 11.1 million. An existing shareholder, CEO Elon Musk will sell 1.42 million instead of 1.1 million.
Tesla, which has yet to earn a profit since it was founded in 2003, wants to raise as much as $213 million to spend on factories and potential acquisitions.
Musk, who is known to be staking his fortune in this venture after getting nearly $300 million for selling PayPal Inc. and Zip2 Corp., is hoping that investors will fund a startup that is anticipated to lose more money in the next two years as it works on its project to build a battery- powered sedan.
Last week, Rochdale Investment Management LLC commented that the IPO will help Tesla's standing as the only producer of highway-legal electric cars sold in the US; however, Tesla may still not be profitable due to the less expensive alternatives that established automakers would offer.