Electric car Tesla launches IPO at $17 per share, beating expectations
Electric-car company Tesla Motors launched its IPO today, becoming the first U.S. automaker to go public since Ford did so in 1956.
Tesla is listed on the tech-heavy Nasdaq and priced at $17 per share, raising $226 million in its offering. Tesla trades under symbol TSLA.
The Palo Alto, Calif., automaker sold 13.3 million shares and beat expectations of an opening bid of $11 to $13 per share. The company has never been profitable, having lost $290 million since it was founded in 2003.
The company hopes to use its IPO money to build a more affordable $50,000 sedan, as the company's original two-seater sports car came in at $109,000. The IPO is expected to trigger a $50 million investment from Japanese auto giant Toyota. The Tesla sedan will be built at the New United Motor Manufacturing plant in California, which was the previous site of a joint venture between Toyota and General Motors.
The Tesla already has some celebrity fans, including owners Brad Pitt and San Francisco Mayor Gavin Newsome.
June 29, 2010; 9:57 AM ET
Categories: Wall Street
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