Tesla Motors

1987 Words8 Pages
TESLA Motors IPO June 2010 By: Brad Taylor Tesla Motors, Inc. was formed in 2003 to design and produce affordable EV’s (electric vehicle) and sell into the mainstream market place. The company is in the auto manufacturing industry and the consumer goods sector. To sustain its significant cash flow needs to support its heavy research and development spending and growing infrastructure needs (dealerships), the company completed a public offering in June of 2010 where it sold 13.3 M shares at a price of $17.00 in a successful IPO that raised $226.1 M and listed Tesla on the Nasdaq (TSLA). Combine the $226.1 M raised with its IPO, with its four private offerings, various investments from other partners, $465 M in term debt from the…show more content…
The other facts that the SEC filings yielded, is that in addition to the IPO and the proceeds that generated, Tesla has also had investments from: * Four rounds of funding yielded a total of $105 M in private funding through 2007 * Mercedes Benz invested $50 M in 2009 for approximately 10% of the company and a seat on the board. * Toyota invested $50 M in 2011 for validated electric vehicle powertrain systems * Panasonic invested $30M in 2011 and signed a Supply agreement with to provide lithium Ion batteries. Additionally, in 2009 the Department of Energy’s Advanced Technology Vehicles Manufacturing program loaned Tesla $465 M to set up a production facility for the new S sedan, and per the 2011 annual report balance sheet, still had to do a secondary offering of 5,300,000 shares in 2011 for an additional $172.4 M in capital. 3. What was the Price of the IPO? What was the P/E Multiple? a. What was the Price of the IPO? The date of the IPO was June 29, 2010 and while it was initially priced to be in the $14 - $16 range, it actually opened up at $17. In addition, they increased the amount of shares by 20% to 13.3 M because of the demand. Closing share price for the day was $23.89. With 13.3 million shares offered at the price of $17, Tesla raised $226.1 M to help fund the development of its Model S sedan. b. What

More about Tesla Motors

Get Access