Tesla (TSLA) IPO Set For June 29th

The CBOE IPO is the hot IPO on everyone’s radar today, but in a couple weeks all eyes will be on the Tesla Motors IPO.  The much hyped electric car maker with big name investors such as the Google founders, the Abu Dhabi government, Daimler and even the US government behind it, hopes to raise another $178 million through the IPO.  Toyota Motors (TM) will inject another $50 million in the stock upon a successful Tesla IPO. The company is raising cash to help produce its second electric car, the Model S, which is a 4 door sedan initially priced at $50K.

While the company bleeds red ink selling its novelty Roadster, the company hopes that the Model S will achieve volume production and  get the company moving towards profitability around the 2013 time frame, but that may be too optimistic.  I personally am not all that excited by this IPO.  Companies that haven’t turned a profit and trade on potential haven’t fared well.  If you look at US based lithium battery play A123 Systems (AONE), the initial hype wore off quickly and the stock continues to plummet to new lows.  That could very well play out with the Tesla IPO as well. 

Tesla will begin trading on June 29th on the Nasdaq under the ticker TSLA.  Once the stock begins trading, you can get your free technical analysis using the patented trade triangle technology. 

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