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Tesla Motors Sets IPO For Week Of June 28
11–20 of 32 posts
Re: Tesla Motors Sets IPO For Week Of June 28
#12This seems insane - these guys have sold, what, 2000 models at the most? And they would be even worse off the instant all of their government subsidies dry up. Their innovation may be remarkable, but the fact is that they make a product which isn't economically feasible without a lot of help from taxpayers doesn't bode well for the long-term health of the company.
maybe oil companies should invest in Tesla. they have billions to spare, it would give them green cred, and act as a hedge for the case where demand shifts from gas to electric powered vehicles.
I don't think demand is going to shift to electric until it becomes more economical than combustion. Path of least resistance still rules the economy. Telsa's current state of affairs indicates that electric has a long way to go before it can viably compete in the mass market.
Re: Tesla Motors Sets IPO For Week Of June 28
#13This seems insane - these guys have sold, what, 2000 models at the most? And they would be even worse off the instant all of their government subsidies dry up. Their innovation may be remarkable, but the fact is that they make a product which isn't economically feasible without a lot of help from taxpayers doesn't bode well for the long-term health of the company.
I don't see the insane part. Making cars is very capital intensive and it's virtually impossible to ship a high-volume car without large amounts of capital. I think that Tesla's demo of a small volume roadster with private money sets the stage for a larger future offering.
But it's not "high-volume" - it's sold less than 2,000 units! And they can't even get the price under $100k even with all of the subsidies!
Re: Tesla Motors Sets IPO For Week Of June 28
#14Do you guys think it's a good idea to buy TSLA on day one?
Re: Tesla Motors Sets IPO For Week Of June 28
#15I wonder if a liquidation event like this is going to make it hard to keep key employees around. The company is hardly at a place where it can afford to lose people and "hold the line".
Re: Tesla Motors Sets IPO For Week Of June 28
#16Earlier quoted context omitted.
I don't see the insane part. Making cars is very capital intensive and it's virtually impossible to ship a high-volume car without large amounts of capital. I think that Tesla's demo of a small volume roadster with private money sets the stage for a larger future offering.
But it's not "high-volume" - it's sold less than 2,000 units! And they can't even get the price under $100k even with all of the subsidies!
I said:
Roadster: small-volume: 1063 sold using VC money: good demo
Model S: high-volume: needs public money
Re: Tesla Motors Sets IPO For Week Of June 28
#17Tesla's main competition right now is Nissan with the LEAF. They need to scale up and drive down the price of the Model S and 3rd model rapidly, or they'll get buried by the big players.
What they've done is great from a technological standpoint, but they need economies of scale to keep going.
Re: Tesla Motors Sets IPO For Week Of June 28
#18This seems insane - these guys have sold, what, 2000 models at the most? And they would be even worse off the instant all of their government subsidies dry up. Their innovation may be remarkable, but the fact is that they make a product which isn't economically feasible without a lot of help from taxpayers doesn't bode well for the long-term health of the company.
What Tesla offers is more than the cars they sell. They have put battery technology into practice in a way few other car companies have done. This is going to be worth money in the future. Toyota and Tesla announced a collaboration in May 2010.
http://www.teslamotors.com/media/press_room.php?id=2509
I think Tesla may well play an important role in the future where they teach other car companies how to "do" battery cars, and I can see that if they do this well they may be hot property.
Re: Tesla Motors Sets IPO For Week Of June 28
#19Tesla's main competition right now is Nissan with the LEAF. They need to scale up and drive down the price of the Model S and 3rd model rapidly, or they'll get buried by the big players. What they've done is great from a technological standpoint, but they need economies of scale to keep going.
You think a $50,000 luxury sedan with a 200-mile range, more interior room than an SUV, and a < 6s 0-60 time competes with a $25,000 econobox with a 100-mile range and a top speed of < 90mph?
Re: Tesla Motors Sets IPO For Week Of June 28
#20This seems insane - these guys have sold, what, 2000 models at the most? And they would be even worse off the instant all of their government subsidies dry up. Their innovation may be remarkable, but the fact is that they make a product which isn't economically feasible without a lot of help from taxpayers doesn't bode well for the long-term health of the company.
Auto companies are hugely capital intensive (which is why you don't see many new ones) so I don't see what's insane about it. They are going public to raise funds to hopefully one day make loads of cash. It's a different kind of IPO than something like Google which was simply to make the employees wealthy, but not insane.
tl;dr this is an IPO at its finest--a make it or break it company trying to raise funds on the open market.