In a move that could make it the first American automaker to go public in over half a century, Tesla Motors, the California-based electric car startup, is said to be preparing an IPO filing. To date, the company has received $268 million in venture capital, a $50 million investment from Daimler, and a $465 million loan from the U.S. Department of Energy.
Tesla has not commented publicly on rumors of an IPO, but insiders told Reuters a filing could come in the next few days. Such an announcement would be well timed considering the apparent gold rush to so-called “green” companies.
Tesla announced it reached profitability in July, with $1 million in earnings on revenue of $20 million. To date, the automaker has shipped close to 1,000 examples of its Roadster sports car, which retails for $109,000 and competes with the Porsche 911.
Flush with cash, it’s unclear why Tesla is pushing forward with an IPO at this time. The company has said it has more than enough funding to complete development of its Model S luxury sedan and construct a plant to build it. But given CEO Elon Musk’s ambitious tendencies (he’s also the founder of PayPal, SpaceX, and SolarCity), we wouldn’t be surprised if the company is considering other projects.
11/21, 9:03 PM
posted by:
Dr.Martens
i have high hopes
11/21, 11:30 PM
posted by:
Architect
I wish them well…a reward for great product. I might even buy some stock!
11/22, 12:30 AM
posted by:
TomF
I’m in. Exit dying companies like Chrysler, enter new ventures like Tesla and Fisker.
11/22, 1:08 AM
posted by:
netguru2000
Tesla’s dead. Fisker’s dead.
If either shine a nugget of profit, one (or all) of the big three will utilize their outrageous capital and influence to squash and rape anything that these guys have success with. GMs been doing it for years. These small companies are only showing early potential because the governments pot of gold, when the well runs dry, it’s Hasta la vista baby.
11/22, 2:08 AM
posted by:
Soravia
Telsa’s success will depend on electric charger grids. If the local governments starts on those, there will be much more inexpensive models for general public.
11/22, 2:24 AM
posted by:
leftwingagenda
netguru: “If either shine a nugget of profit…”
LLN article: “Tesla announced it reached profitability in July, with $1 million in earnings on revenue of $20 million.”
hmmmmmmmmmmmmmmm…
11/22, 7:44 AM
posted by:
carstuff
Why are they doing an IPO? They need development money. Per the above they use 3/4 billion in cash to develop the first car (and I would guess a lot of money from that rich owner) but it takes a lot more to develop 2 vehicles. They need money to do the 2nd one and they owe $500 million to the government.
11/22, 7:56 AM
posted by:
idrinorbarsaku
Ever since that problem with the ceo, I’ve started to hate Tesla. I hope Fisker does very well though!
11/22, 10:29 AM
posted by:
netguru2000
leftwingagenda:
It appears you believe a million is a lot for a car company. How does a million fair once it’s netted against 72 months of losses (not including debt to investors)? The government is handing them 465 million, if the well doesn’t run dry, they may have a chance.
11/22, 10:37 AM
posted by:
idrinorbarsaku
netguru2000,
regardless of that total, it is a PROFIT…for a company that sells only expensive vehicles, it is still good considering they are not at full production.
11/22, 11:50 AM
posted by:
johnnycanuck
Age old story… how do you make a small fortune in _________, start off with a large one. Fill in the blank.
11/22, 1:32 PM
posted by:
orangecones
I can really see this taking off. Given Model S is 1/2 the price of the Roadster, and then there were rumors of yet another car in the pipes (maybe 2014-5 release?) which would be “an affordable compact”…. given pressure from several other manufacturers showing interesting in building $25-30k EVs, I wouldn’t be surprsied Tesla would launch their volume model in teh same price range sometime mid next decade.
11/22, 3:57 PM
posted by:
leftwingagenda
i gave no indication as to whether i believe a million is a lot or a little…you said they weren’t profitable, yet the article just stated they turned a profit…i found that amusing…
it’s also amusing you think you can discern my position on whether a million is a lot when the content of my post was “hmmmmmmmmmm….”
11/22, 4:01 PM
posted by:
SomeGreek
None one can take off by selling rumors, orangecones. Except of the news sites.
11/22, 5:11 PM
posted by:
jdasch1
Tesla cannot deliver enough vehicles for the demand. They bascally shut off taking orders by restricting people like myself from ordering one because of where I live. When they finally can build enough vehicles for demand, then they can be measured by the same methods that we use on current car companies. Just think for a minute before you write them off. I want one but I cannot order one or purchase one. What happens to this company when they can change cannot to can?? I will be buying stock when they come out with their IPO.
11/23, 1:23 AM
posted by:
Ashes to Ashes_Dust to Dust
“They need money to do the 2nd one and they owe $500 million to the government.” It’s $465M, and it much better than owning the government a $50B supposed loan (aka bailout) to the government!
11/23, 6:51 AM
posted by:
jayjc08
Leftlanenews- I’ve been having trouble with this page on my other computer. I’m using firefox and it keeps saying that there is an error with one a video on this page and with java. I don’t see any videos aside from your advertisements, so I’m not sure what that could be, but it only happens with this one page.
11/23, 10:27 AM
posted by:
Borat
Chrome has the same issue with a lot of pages on this site. The problem seems to be adobe animation script that runs amok. I don’t know if it is error in the script of adobe player at fault , but pages are crushing. Let’s blame player – should have handled an error.
I hope this company will make it. You can’t expect incompetence rule the roost forever. Eventually, GM will disappear (give it another few billions on subsidies and it will be gone).
On the subject of million profit: if I could borrow 450 millions, I would guarantee at least 15 millions profit per year (3.75 per quarter). This is simple: invest into US government bonds at about 4.2% (on 30 year bond) and you don’t have to screw a nut to make the money