Elon Musk, CEO of Tesla Motors
Tesla (Nasdaq:TSLA), or TSLA as it will trade under on Nasdaq, has been priced at $17 per share, allowing the electric car start-up to raise more than $226 million in its IPO. Investors were expecting the share price target range to be between $14 and $16 but the overflow of excitement saw Tesla increase the number of shares it plans to offer to 13.3 million, nearly 20 percent more than originally planned.
Most of that excitement is riding on news of the upcoming Model S electric sedan, which is expected to go on sale in 2012 priced at around $50,000. News also broke recently that the company is planning several other models all based on the Model S, including a crossover, convertible and commercial van.
Tesla is desperate need of new models if it ever hopes to earn a return for its investors. Last year the company lost $55.7 million, which brings its total lost since inception seven years ago to $260.7 million.
The new round of funding raised in the IPO, as well as the $465 million in DOE loans and $50 million stake sold to Toyota, should help Tesla considerably with its future model plans.
The company will be offering up its shares to the public for the first time on June 29.