TSLA: Tesla Motors IPO Details

New York (GaeaTimes.com) - Tesla Motors IPO was held today, June 29, 2010. Though it lost millions of dollars after it was founded in 2003, investors have shown faith in the company and it was a successful IPO for the company. There was confliction between two groups of Tesla motors to initialize public offerings. Executive directors and part of officers of Tesla group did not want to sell the shares of the company. But last year Tesla has faced a huge amount of loss around 55.7 million dollars. So the officials decided to go with the IPO. It was decided that company will sell 13.3 million shares and the cost of each share was fixed at $17. They earned $226 million from it.

At first CEO and other officials decided that they would sell 11.1 million shares at a price of $14 to $16. So total earning could be $178 million. After starting the share trading each share of Tesla Motors was settled up at $18.02. Its highest margin was $19 and lowest margin was $17.54 within the first 15 minutes of start. The CEO Elon Musk collectively sold an additional of 1.4 million shares. It is seen that market has been volatile nowadays so many companies have been cutting of the size of their IPOs. Tesla motors felt that it has something special and they did.

Investors hope that within a very short period of time it can compete with companies like BMW, Nissan, Mitsubishi.

Tesla Motors is a Silicon Valley based company mainly offering design, manufacture and sales of electric vehicles and electric vehicle power train components. Tesla’s first vehicle was Tesla Roadstar run by lithium ion battery.