Next week, one of the most highly touted electric car companies will go public. Tesla Motors will debut with an IPO on the Nasdaq under the ticker TSLA in order to help raise cash for its expansion. The company hopes to raise around $180 million in order to expand manufacturing capacity to produce the Model S sedan electric car. They are pinning their hopes on the $50K sedan in order to move the company to profitability within the next three years.
Like most lithium battery and electric car companies, there is quite a bit of hope, but no profits to speak of. It's all about the future. While Tesla is a company with lots of big names behind it, including the tax payer to the tune of hundreds of millions, the success of Tesla is anything but guaranteed. Hundreds of millions have already been burned through and sales of the Roadster continue to diminish as the novelty wears off. No doubt, Tesla Motors will be a very interesting company to watch as it rides the electric car revolution, but investors might be better off on the sidelines for now.
Filed under Tesla Motors by on Jun 25th, 2010. Comment. 
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