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Tesla Stock Rises After IPO Raises $226 Million

Posted in auto industry, Automotive Event, Electric Cars, General, New Cars, Newsworthy, Tesla by Kurt Ernst | June 29th, 2010 | Leave a Reply |

Tesla Roadster

If you were lucky enough to get in on Tesla’s IPO this morning, you probably paid around $17 per share. Congratulations, you’ve already made money: shares were selling for as high as $19 today, before dropping back to $18.75 in afternoon trading.

The $226 million raised by Tesla will be used to open the former NUMMI plant in California, and has ensured that Toyota will invest another $50 million in the electric car manufacturer. Tesla, whose sole automotive offering to date is the battery powered Roadster, has plans for a practical electric sport sedan called the Model S. So far, Tesla has created functional prototypes of the Model S but has not lined up a platform on which to build the car. Toyota’s investment in Tesla should go a long way towards solidifying that relationship.

Tesla’s CEO and co-founder, Elon Musk, recently declared that he’d run out of cash and was living on loans from friends and supporters. As a 28% shareholder in Tesla, Musk is now worth some $63 million, on paper at least. Someday, I hope to be that poor myself.

Source: Tesla reportedly raises $226 million with IPO of 13.3M shares

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