Tesla Prices IPO at $17.00 per Share
29 June 2010
Tesla Motors announced its initial public offering of 13,300,000 shares of its common stock—an increase of 20% over the planned offering—at a price to the public of $17.00 per share—above its earlier indicated range of $14 to $16 a share.
The shares will begin trading today on the NASDAQ Global Select Market under the ticker symbol “TSLA.”
Of the shares in the offering, 11,880,600 shares are being offered by the company and 1,419,400 shares are being offered by selling stockholders. In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional aggregate of 1,995,000 shares of common stock to cover over-allotments, if any. Tesla will not receive any proceeds from the sale of shares by the selling stockholders.
Goldman, Sachs & Co., Morgan Stanley, J.P. Morgan and Deutsche Bank Securities are acting as the joint book-running managers for the offering.
This stock is going to go nowhere. Tesla is not like Chipotle, which keeps going up. Tesla is not poised for growth at all. When they have dealerships all over the country and / or their cars start getting sold all over the country, maybe that will be a good time to get into the stock. Maybe they should run to the government for handouts like so many other renewable energy companies.
Posted by: ejj | 29 June 2010 at 05:14 AM
They already did that.. I highly doubt tesla will survive. I rather much expect someone will gobble em up for any patents.
Posted by: wintermane2000 | 29 June 2010 at 05:18 AM
Maybe this stock will go up, maybe not. Maybe the company will go out of business, but now is certainly the time to buy in at $17 a share, not when they have dealerships all over the country and are selling 100K cars per year. By that point, the stock will be at $100 or $1000. ejj, you fundamentally misunderstand the nature of investing. A savvy investor will buy this stock and maybe 10 or 100 other similar green start-ups. Maybe half or even less will survive. But of the ones that do, the potential upside is extraordinary and will likely make up for the loss from the others. Sure, if you're looking for steady retirement income, this probably isn't the stock to buy, but if you're looking for potential long-term growth and can handle some ups and downs along the way, this is the way to go.
Posted by: Peter9909 | 29 June 2010 at 07:15 AM
A savvy investor does not put his / her money into investments that are going nowhere for the foreseeable future when there are many, many other investment options available. If this stock is anticipated to flatline or trend very slightly upward for 5 years, it would be idiotic to put money into it right now. If at year 4 they unveil a high growth plan & start producing a variety of cars that are wildly popular, putting money into Tesla then would make sense. Sure, like wintermane2000 said, it could be a takeover target which could result in nice gains, but that would be risky and require serious intestinal fortitude waiting for the time, if ever, Tesla was taken over / bought by another company.
Posted by: ejj | 29 June 2010 at 08:13 AM
Tesla admits they won't be profitable until 2014. Hardly a wise investment.
Posted by: Mannstein | 29 June 2010 at 08:59 AM
There are two types of savvy investors: The professional and the layman. The professional has the time to watch the market every day and keep track of companies like this. He can afford to wait and then jump in when the time is right to maximize his gains. The layman OTOH always has other things that keep him too busy to put this kind of plan into action. If he waits too long he risks missing the launch and playing catch-up later. His best course of action is to buy early and wait; he's "looking for potential long-term growth and can handle some ups and downs along the way." 'This is my way to go' and it has served me well enough.
Posted by: ai_vin | 29 June 2010 at 09:26 AM
A123 went out above $17 and is now below $10 per share. At some point the stock is worth the risk, but there are many IPO ready people waiting for stocks and this could be one of them.
Posted by: SJC | 29 June 2010 at 10:38 AM
The IPO is going very well on a horrible day for the market. For the latest news and views check out http://tesla.evnewssite.com/
Posted by: The Eco Gift Source | 29 June 2010 at 11:00 AM
If Tesla was going to offer $10,000 electric cars, SUV's and trucks, with EEStor ultracap batteries, with power equal to 400 HP engines, with appealing styling and features....I'd buy some stock. I think the Nobel Prize Winning Crazed S e x Poodle might invest a little money, but not any serious investors.
Posted by: ejj | 29 June 2010 at 06:55 PM
@ejj
About those EEStor ultracap batteries? Do we know if they are real or just vapourware? They keep setting back the launch date for them.
Posted by: ai_vin | 30 June 2010 at 01:57 PM
By the time ESStor has a workable unit on the market, lithium batteries + many others will have superior performance. That's what happens to very long gestation products.
However, China, India, Brazil and other countries with high productivity potential will mass produce e-vehicles at less than (2010) USD 10K by 2020. They may not have all the 100+ gadgets that we are used to but they will be functional.
Posted by: HarveyD | 01 July 2010 at 10:06 AM
I don't think EEStor is vaporware yet. What is sad is that ZENN laid off people, restructured their company and are in limbo waiting for the product...how long can that go on? But, they've also brought in a new VP of business development 6 months ago --- http://zennergy.com/media/press_rel/01_10/ZMC_VP_Business_Development.pdf probably a $75k - 100k per year job...why would this guy go work for a company (and gamble with his career) that isn't making or producing anything unless there were some kind of assurances made that a product will be forthcoming soon?
Like HD said, this thing might be in limbo so long that other cheaper alternatives are already mass produced & then Zenn will really be s c r e w e d.
Posted by: ejj | 01 July 2010 at 06:52 PM
What could be interesting is the "S" model Tesla versus a range extended EV like Fisker. From a marketing perspective, it will be informative to see if people favor an all electric versus range extended.
Posted by: SJC | 03 July 2010 at 08:56 AM
Surprise, surprise...
July 06, 2010
Tesla Shares Drop Below Initial Offering Price of $17
http://www.businessweek.com/news/2010-07-06/tesla-shares-drop-below-initial-offering-price-of-17.html
Posted by: ejj | 06 July 2010 at 03:15 PM