Tesla Motors Inc.'s initial public stock offering is set for June 29. Tesla, an electric car maker based in Palo Alto, Calif., aims to raise up to $178 million through the sale. New government filings indicate that the company intends to sell 11.1 million shares priced between $14 and $16 per share.
Last January, Tesla's filing with the Securities and Exchange Commission indicated that it wants to raise as much as $100 million. Shares will list on the Nasdaq stock system under the symbol TSLA.
The Tesla stock sale doesn´t come at a favorable period for public offerings. Since May 1, over 30 companies have postponed or delayed stock sales due to concerns about the European debt crisis and the pace of the recovery of the US economy.
In fact, General Motors Co., which is under partial government ownership, wants to go public this fall. A SEC filing reveals that proceeds from the Tesla offering will be used for factories and to fund possible acquisitions.
Tesla also said that its existing stockholders, including CEO and co-founder Elon Musk, will sell 1.1 million of the 11.1 million shares and that Toyota Motor Corp. will purchase an additional $50 million of stock in a private placement.
Since Tesla was created, it had never posted a profit and in recent years, has incurred almost $300 million in losses. As of March 31, Tesla has only sold 1,063 of its $109,000 Roadster models but still piques the interest of environmentally conscious investors and exotic-car enthusiasts.