The Tesla IPO – Buy Now or Wait?
Tesla shares under the NASDAQ name TSLA are going on sale today at $17 a piece in a move that Tesla CEO Elon Musk hopes will bring in close to $226 Million USD for the fledgling electric automaker. Much of the excitement around the car company rests on the shoulders of the anticipation of the upcoming Model S sedan, a $50,000 USD 4-door sedan with a 100% electric drive-train due out sometime in early 2012.
Tesla Motors has drawn huge investments from the US Government, Toyota and Daimler-Benz over the past 24 months, which for many potential investors, has been proof enough that the potential of the Palo-Alto startup is anything but a flash in the pan. Other more sceptical investors have pointed out that the company has burnt through over $260 million in capital since its inception and only sold just over 1,000 of its Roadster model electric sports cars. All in all, the company is not expected to generate serious revenue until at least 18-24 months into its full production run of the Model S sedan, of which Tesla is aiming to build 20,000 per year at its newly acquired NUMMI plant in California.
Keep an eye on the NASDAQ today, electric cars are here to stay and events like the Tesla IPO will go down in the history books.