Tesla Motors Preparing to Go Public With an IPO

In brief: Reuters is reporting that insiders at Tesla Motors are stating that the electric car maker is preparing an initial public offering (IPO).

The word

The Reuters report is that two inside sources at Tesla have said that growing interest in green technology and battery powered vehicles is fueling the new interest in an IPO.

In 2008, Elon Musk (Tesla CEO) stated that an IPO was a possibility, giving a 2008/2009 date for it. The economic downturn changed that, it appears.

Other electric car industry manufacturers have recently gone public and had thier IPO met with enthusiasm on the market. A123 Systems went IPO in late September this year and rose by 50% in the first day.

It takes several months to file an IPO and so far, Tesla Motors has not officially stated they are doing so. So a new public offering from Tesla would come in the first quarter of 2010 at the earliest.

And so ...

Achieving corporate profitability in July, Tesla is finally positioned to make a strong IPO to the market. This could mean a release from the venture capital funds that still own large stakes in Tesla (Valor Equity, Technology Partners, Westly Group, and Compass Venture). That is usually the largest step from "startup" to "established."

Photo credits: Tesla Motors