Tesla Motors IPO unlikely to come before late 2010
Tesla Roadster – Click above for high-res image gallery
Back in the comparatively sunny days of early 2008, Tesla Motors was still hoping to launch an initial public offering of stock by the fall of that year. Unless you've been pulling a Rip Van Winkle, you're well aware of what transpired in the world's financial markets almost exactly a year ago. Needless to say with stock markets shedding value at a rapid pace, trying to sell new shares in a startup company likely would not have yielded nearly as much cash as initial investors were hoping for.
Even with the markets now relatively more stable, it still isn't the best time – especially with the company's financial performance still an open question. Tesla reported its first profit in July of this year, but unless Roadster sales pick up that may not last and, with Model S production still at least two years away, revenues could be a problem. Stephan Dolezalek, managing director of VantagePoint Venture Partners, one of Tesla's investors, told a conference Thursday that a Tesla IPO was unlikely before the end of 2010. With additional investment this year from Daimler, and the low cost DOE loans, Tesla's finances are more stable than they were at the start of the year, making the need for an IPO much less urgent.
Gallery: Jason Calacanis' Tesla Roadster
Photos copyright ©2009 Drew Phillips / Weblogs, Inc.
[Source: Reuters]
Reader Comments (Page 1 of 1)
Mike 1:30PM (9/11/2009)
im pretty sure Tesla Motors will have no trouble grabbing a giant bag of cash from an IPO even in the current volatile market. If they can turn profit in the bottom of a recession they will only do better when the market recovers
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rlewis01 1:53PM (9/11/2009)
I usually don't like orange on cars, but that's a beautiful color on the Tesla. At the InsWeb Blog I wrote a 'sexiest green cars' article: http://blog.insweb.com/2008/09/sexiest_green_cars.html Looking back, I should have included the Tesla! If I could afford one, I'd be first in line to get it. Hopefully more 'green' supercars will be put into production to help fuel-efficiency and alternative energies become part of mainstream automotive thought in ALL forms, not just run-of-the-mill passenger vehicles.
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FitFan 3:56PM (9/11/2009)
It's a bit early for Musk to cash out.
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Nick From Montreal 5:47PM (9/11/2009)
Yeah, plus Musk has stated publicly that the deal with Mercedes had a condition that he remains CEO for few years. Being CEO of a public company may not be something he is looking forward to.
Throwback 5:52PM (9/11/2009)
It's never to early to cash out if you have other plans. Being familiar with the IPO market, now is definitely not the time to try to raise some cash.
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southalljr 12:05AM (10/13/2009)
What's happening with the stock I already have in Tesla? Trading is frozen right now for TESLA so will those certificates be any good when TESLA new IPO returns in 2010?
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