Tesla (NASDAQ:TSLA) is nearing the end of the marketing phase of their IPO and the current plan is to price the offering Tuesday, June 29th. (If market conditions permit.)
Many recent IPO transactions that we have been following have been pricing below range (Broadsoft (NASDAQ:BSFT), Motricity (MOTR), HigherOne (NYSE:ONE), Fabrinet) so Tesla may be offered below the filing range in order to get the deal done.
Simply put, the proposed filing range makes the stock a rather expensive call option considering that the Intrinsic Value of the company turns positive and begins a steep ramp in 2012 or 2013 depending on the timing of their Model S production ramp. Meanwhile, the shares will trade on news and investor appetite for risk, which is rather variable these days.