Is the Long-Awaited Tesla IPO Coming?

by Michael Kanellos

Tesla Motors is preparing to move forward with an IPO, according to unidentified sources at Reuters.

There is no S-1 on file right now, according to the SEC's website, but that would be the first step.

Many have waited for Tesla to start moving on an IPO. It is one of the most visible green companies and, with its loan from the government, will likely be able to fulfill its ambitions of bringing out a sedan in a few years.

The A123 Systems (AONE) IPO likely had an effect as well. A123's stock zoomed up the first day of trading and sparked hopes that more would follow. (A number of people, in fact, sent Tesla CEO Elon Musk news articles on the A123 IPO the day it occurred, I'm told.)

Of course, not everything goes as planned. Although A123 nearly hit $20 on the first day of trading, it is now wallowing around $15. The company went out at $13.50.

Comments

[tripleblack]

Tesla's much written-about sports coupe was recently reviewd by BBC's Top Gear...

And failed miserably. All the typical teething problems of the long history of electric cars.

We can only hope that they figure it all out one day soon, but I am not eagerly awaiting any IPO. I would think that it is more likely that they will at some point simply reach a deal with one of the majors (perhaps Ford) and plug their more useable electric drivetrain design into a Tesla body.

2009 Nov 24 10:59 AM

[dividend_growth]

AONE is losing more than one dollar per one dollar of sale, Tesla is at least profitable.

However, automobile manufacturing is extremely competitive, with many governments considering it a "strategic industry", which means they will subsidize it disregarding economic fundamentals.

2009 Nov 25 01:54 PM