Tesla Motors Inc., raised $226 million selling shares above its forecast in the first IPO of a U.S. automaker in almost half a century.
The Palo Alto, California-based company will use proceeds to pay for new factories and acquisitions, the SEC filing showed. This is the first U.S. automaker IPO since 1956 when Ford Motor Co. joined the markets.
C.E.O. Elon Musk, put up his personal fortune for Tesla while making almost $300 million selling his shares in PayPal Inc. and Zip2 Corp., the funds will be used to fund a startup that expects to lose more money in the next two years as it tries to build a battery-powered sedan.
The sale came after at least 35 companies worldwide postponed or withdrew IPOs since the start of May as the European debt crisis sent the Standard & Poor’s 500 Index down as much as 14 percent from its 2010 high. Can this spark a new wave of innovation in the U.S. automotive sector?
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