Tesla Motors filed for an initial public offering of up to $100 million
By Andrew C., 30 Aug, 2010. 0 Comments
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US electric sports car maker Tesla Motors filed for an initial public offering of up to $100 million, a move that is considered a landmark in the resurgence of electric car technology. Many carmakers had previously dismissed this technology as impractical but now, investor interest had been rising on battery-powered vehicles and green technology. Tesla Motors, best known for its $109,000 all-electric Roadster, aims to take advantage of the renewed interest. Analysts say that Tesla's IPO, with underwriters including Goldman Sachs, Morgan Stanley, JP Morgan and Deutsche Bank Securities, is expected to generate enthusiasm for IPOs generally.
Matt Therian, analyst with Connecticut-based IPO research firm Renaissance Capital, said that people will be monitoring how this move progresses. Therian added that he thinks it's a good sign for the IPO market. Meanwhile, Ben Holmes, founder of MorningNotes, said that an IPO is sometimes the best form of advertising, especially if the deal is successful, for companies like Tesla.
Holmes described this IPO to be a bell cow, which he says is a deal that's so impressive that it brings other deals waiting to the market. A Reuters report last November says that Tesla was preparing to file for an IPO. Tesla said that in the nine months ended Sept. 30, it lost $31.5 million, down from a loss of $57.3 million in the same period a year earlier. Meanwhile, revenue rose to $93.4 million from $580,000.
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