[/caption]Those who believe in an environmentally and a socially responsible way of investing will get a chance to put their money where their ideology is.
Telsa, the brain child of PayPal founder Elon Musk, is a seven-year-old electric car company, and they will be offering an initial public offering (IPO) to potential investors.
Although the company has lost money since its inception, Telsa Motors will offer its' shares - some 13.3 million - for purchase on the stock exchange.
Musk has said that he has invested his entire fortune into Tesla Motors, a testament of his faith and the courage of his conviction, as he dedicated himself to proving that there are viable alternatives to the gas guzzlers out there on our roads.
Telsa Motors operates out of Palo Alto, and the mood is that investors are giddy over the proposed IPO…so much so that the 13.3 millions shares is an increas from what was initially offered, CNN reported.
The company will be traded on the Nasdaq under the ticker symbol “TSLA,” with an offering price of $14-$16 dollars. This IPO is expected to raise $185,000,000, and gives Tesla Motors a market value of almost $1.5 billion.
The problem in the past with electric cars was that they were too expensive; case in point, Tesla’s Roadster sports car was priced at a whopping $100,000. But the new Model S, an electrical sedan, will be sold for $50,000, a marked difference in price that will be more financially reasonable to the average consumer.
The sedan will give an owners between 160 miles and 300 miles per charge, a fantastic capability for an electric running vehicle.
But the problem facing Telsa Motors is that it only has one prototype, and the plant's need to build its' projected 20,000 sedans in 2012 is not yet realized. Therefore, the logistics of having electrical stations strategically placed to charge the cars, and the coming competition in this niche area by more established car companies like Toyota, are giving a few headaches to the company.
Although Telsa Motors is only in the process of procuring a plant to build its projected 20,000 Model S sedans, this bodes well, as it shows that there is an over abundance of good will towards Telsa. This is because it would create “green” jobs, and said jobs will be located in America.
Telsa’s benefactors have been the federal government, through the Department of Energy, which has loaned it some $465 million; and Toyota, which has invested $50 million.
I hope that Mr. Musk's vision of an affordable, environmentally conscious transport comes to fruition, and will be part of the lexicon of the new industrial revolution waiting to be born.
Just a correction - the stock symbol is TSLA.
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