Tesla Motors may have an IPO within a year
If Tesla Motors is to move forward with building an assembly plant of their own to build the WhiteStar sedan and other future products they will need a lot more cash on hand. The current venture capital investors don't seem inclined to put up that kind of money so it looks like the company will be going to the stock market to raise additional funds. Speaking to Reuters, Chairman and investor Elon Musk indicated that an initial public offering is likely by the end of 2008 or early 2009. Partnering with other companies is also an option to develop lower cost EV's but when I spoke to Darryl Siry about the subject recently he indicated that that pathway is problematic. Any time multiple companies are involved, it gets harder to make decisions about strategic direction. Musk want the follow-on vehicle to WhiteStar, currently code named BlueStar, to be a more affordable mainstream vehicle with volumes approaching 100,000 annually.
[Source: Reuters, Tesla]
Reader Comments (Page 1 of 1)
Kardax 12:29PM (2/07/2008)
Hopefully the stock market is in better condition by then :)
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meme 1:02PM (2/07/2008)
100k a year in just a couple years? As if. Not going to happen unless something revolutionary like EEStor can change the name of the game when it comes to low-cost, high density batteries. And even then, there will still be the problem of convincing that many people to go electric. Humans are stubborn.
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Phil L. 1:31PM (2/07/2008)
But humans adapt remarkably quickly when they're faced with a dilemma - and a clearly superior alternative that makes sense. We're getting very close to that point.
Personally, I have a hard time seeing Tesla becoming a large, independent automaker. As their technology matures and (hopefully!) their products prove themselves in the marketplace, they'll become attractive to the large automakers.
Of course, this is just idle speculation; it's hard to tell how it might work out. Maybe a big OEM wants to create a "green" division, and would use the Tesla name and technology to get started.
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NICE! 3:09AM (2/09/2008)
Well IPO would be awesome. Because there are so many believers in Tesla there'll be a resounding amount of support.
@meme
Blue star would be at least 5 years away. By then, there will be many more EVs on the road and people will have already see the benefits of it since the plug-in hybrids like the Volt and Prius will be running on the streets.
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OhmExcited 2:02PM (2/07/2008)
IPO pump and dump here we come.
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meme 2:17PM (2/07/2008)
[quote]But humans adapt remarkably quickly when they're faced with a dilemma - and a clearly superior alternative that makes sense. We're getting very close to that point.[/quote]
Not really. Humans are notoriously slow at changing habits. Look at how slowly the general public has adopted hybrids, despite how easy it is to make a case that an extra few k$ in purchase costs easily translates to a cost savings several times over over the life of the car. Look at how long it's taking CFLs to catch on with the general public, despite the *major* economic advantages to consumers for using them. And these are light bulbs -- incandescents burn out every six months or so, and it only costs a couple bucks to go to a CFL, and these people *still* are taking a long time to switch over.
Don't hold your breath for some rapid switch to electrics. It'll be a long, hard slog. What is needed is to built the case that electrics are clearly superior to gasoline cars, to patch up any doubts or question marks we find in the public's mind whenever we encounter them, and then to be patient --both for supporting infrastructure (charging stations, which will come online as EVs become more common) and for people to decide to give it a shot. As for me, I'm doing my part -- I'm getting an Aptera. And you better believe I'll be using every opportunity I can to evangelize with it :)
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Throwback 4:37PM (2/07/2008)
Who did not see this coming? This is what start ups do. It will be interesting to see if a large car company looks to buy them. Not even Porsche could remain independent, they made the smart move of buying into VW to ensure they controlled their future.
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texmln 12:01AM (2/08/2008)
OhmExcited knows what's up. NOBODY goes out for an IPO at this stage if they really have something. This is a huge red flag that Tesla ain't all it's cracked up to be. Watch for the VC to cash out and leave a bunch of suckers holding the bag. Luckily, it'll most likely be only panty-waste tree-huggers who lose their dough.
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beanieville 1:16PM (5/20/2008)
I like Tesla.
http://beanieville.blogspot.com
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