Posted Nov 20th 2009 3:49PM
Lad's correct about IPO pre-sales. Some percentage of the block should be available to general public via lottery or some other mechanism. Tesla will not disappear because it goes public. It'll be better financed to build post Model S products and expand manufacturing facilities.
This is a great company that has inspired the U.S. move into real EVs and will continue as such. Given the power of the Tesla brand going forward, I'd look for them to enter other energy technologies - including partnerships with commercial space travel.
Invest as long as you understand that IPOs in the U.S. are a scam run by Wall Street; The scam allows pre approved investors to reserve shares of the IPO company at a given price and for the Wall Street firms to talk up the price of the IPO. This almost guarantees an increase in the IPO after its introduction and a nice payoff for the VIPs who are in. If the SEC was worth it's salt, it would control this process to insure the process is fair for the investors who cannot pre buy. IPOs are a form of legal massive insider trading. And, it's a good way for Musk to time his departure from the car business with lots of money. TMC won't be a problem for the existing car companies; TMC has some unique technology in it's battery designs; but, that lead can fast fade as other companies complete their battery plans. I look to see TMC as a pioneer in BEVs but not a survivor of the car business in the long run.
November 20 2009 at 9:55 PM Report abuse Permalink rate up rate down ReplyThe article was also on MSNBC, that's where I spotted it earlier today. The article said that it typically takes a few months to arrange an IPO, so I wouldn't expect it until sometime next year.
Of course that gives the rest of us time to plan any potential investments...
Good thinking. Nissan and GM are about to undercut Teslas price by over 50%.
Musk knows when to bail.
Wouldn't that provide an opportunity for Big Oil to interfere?
November 20 2009 at 6:51 PM Report abuse Permalink rate up rate down ReplyI encourage every reader of ABG to invest heavily when the IPO happens. Anyone have any idea what the ticker symbol will be?
November 20 2009 at 5:06 PM Report abuse Permalink rate up rate down Reply
