Tesla expects $14-$16 share price (Silicon Valley)
Tesla Motors Inc. said Tuesday it expects its stock will sell in the $14 to $16 a share price range.
The Palo Alto-based electric car company could raise up to $239 million at the high end of the price range between the 10 million shares it will sell in its initial public offering, the 3.3 million shares that Toyota Motor Corp. has agreed to buy, 1.1 million existing shareholders plan to sell and 565,000 in additional shares the IPO's underwriters have the option to buy. (More coverage of the Telsa-Toyota partnership available here and here.)
The company's market cap at the high end of the price range would be about $1.5 billion.
In its updated prospectus filed on Tuesday, Tesla revealed that it made an error in its previous filing, understating its stock-based compensation for the 2009 fiscal year by $2.7 million. It said the error is a non-cash item and that it will correct it by recording additional stock-based compensation expense of $2.4 million in the current quarter ending June 30.
Tesla has applied for the ticker symbol "TSLA" to trade on the Nasdaq exchange.
Since the company's founding in 2003 through March 31, Tesla said it had cumulative revenue of $147.6 million and an accumulated deficit of $290.2 million. It posted a $55.7 million loss for the year ended Dec. 31and $29.5 million for the three months ended March 31.
Read the full story in the Silicon Valley / San Jose Business Journal and additional analysis in the Wall Street Journal.
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