Tesla Motors IPO - Interim Results

Most recently, I mentioned the ambitious plans of Tesla Motors for the first public offering of shares on the "technological" NASDAQ exchange. It happened - on June 29, the company, which started the first mass production of all-electric cars in the world, successfully began to be quoted on the exchange with the ticker TSLA . Of course, such emissions cannot be compared with the emissions of companies technological, as the auto industry is a more conservative sector of the economy, but the results achieved in the first days of trading clearly cannot fail to please the owners of large equity stakes, represented by Toyota Corp. and other large institutional investors.

Let us try to abstract a little from the fact that today one NASA share of Tesla Motors sold for 19.20 due to disappointing data on the American economy in general and population employment in particular - everyone who wanted a profit has already managed to take it off in the first days. Fast investors are not interested in serious investors, where they are more shaking for the company's market value. We, however, is also not particularly concerned.
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Two amusing facts: the stock price started at a price of $ 17 dollars, the closing price of trading on the first day was already $ 23.89 with a volume of 1.5 million shares. A good result for the first day, during which the price of one paper rose by more than 40% even despite the general decline in the stock market. The NASDAQ lost 3.85% on that day, and the Dow Jones lost 2.65%

Tesla Motors, which actually became the first American automaker to enter the secondary securities market since Ford (quoted in 1956), calculated the average price to start selling in the range of $ 14-16. As I already mentioned, the bidding started at an even higher price of $ 17, besides, Elon Musk, the CEO of the now-public company, had to additionally send 2.2 million of its own shares to the market due to the huge demand that arose during the first days of trading. .


However, not everything is so rosy in the electric kingdom as we would like. But it seems that investors are not at all embarrassed by the fact that Tesla Motors has yet to work out its money. To date, only one month has been profitable for the entire existence of the company - July 2009, Tesla only spends the rest of the time spending money, digging deeper and deeper into the debt trap. $ 55.7 million spent last year, $ 82.8 million a year earlier. Since the establishment of the company in 2003, she spent in the amount of ... more than $ 300 million.

"Many people are wondering about the feasibility of an IPO for a company that does not make a profit," Max tells reporters at Times Square, near the exit from the NASDAQ building. “The reason why we have no profits today is that we are now in the middle of the road to expand the production of the Model S sedan.”

Before the official announcement and the start of production of the promising sedan, a year and a half remains, and the US Department of Energy yesterday gave the company a loan of $ 465 million. Not to mention the serious stakes of Dailmler and Toyota in the company itself.

However, despite all the financial injections, the managers of Tesla itself and the auditors working with them talk about the course of an “independent corporation” that will finance itself. It sounds beautiful, but it is hardly realistic in the conditions of an innovative workflow into which Tesla Motors has driven itself.

However, time will tell. Shows whether Tesla Motors will be able to make a profit in the next two or three years, produce and sell 20,000 Model S and delight the public with new four-wheel speed eaters without sound.

source: Wired