Tesla Motors Sets IPO Terms, Hoping for $1.4 Billion Valuation
Tesla Motors, a San Carlos, Calif.-based maker of electric vehicles, has set its IPO terms to 11.1 million common shares being offered at between $14 and $16 per share. It would have an initial market cap of approximately $1.46 billion, were it to price at the high end of its range.
The company reported $20.59 million in sales for the first three months of 2010, which is basically flat from the same period in 2009. Its net loss in those months grew to $29.5 million in 2010 from around $16 million in 2009.
Tesla has said to expect continued losses until it begins making “significant” deliveries of its Model S sedan, which is not expected until 2012. The Model S production will be aided by a recent partnership with Toyota Motors Corp., which also agreed to purchase $50 million worth of common stock in Tesla post-IPO.
Tesla has raised over $220 million in VC funding from firms like Draper Fisher Jurvetson, Daimler AG and VantagePoint Venture Partners. www.teslamotors.com
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bob said on June 15, 2010
The Toyota deal is not signed yet. Any investor who buys into the ipo without a signed deal deserves what they will get. The valuation is a strech with the Toyota deal signed.
bob said on June 15, 2010
It would seem to me that investors should wait until the Toyota deal is signed before they buy the ipo.
Dan Nita said on June 19, 2010
Moving in the right direction. GM has also set up a $100 MM fund for electric.