Tesla Motors to raise US$185 million from IPO: Reuters

U.S. electric sports car maker Tesla Motors Inc expects to raise net proceeds of US$185 million from an initial public offering and a private placement to Toyota Motor Corp.

The company, which is targeting growing investor interest in battery-powered vehicles and green technology, said the IPO of 11.1 million shares will be priced at US$14 to US$16 per share.

After close of the IPO, Toyota will purchase US$50 million of Tesla shares at the IPO price, the company said in a regulatory filing.

The company said it will use the proceeds to fund expansion of Tesla stores, working capital and for general corporate purposes.

The IPO from the six-year-old company, best known for its US$109,000 all-electric Roadster, said it will sell 10 million shares while selling shareholders will offer 1.1 million shares.

It also represents a landmark in the resurgence of electric car technology that most carmakers until recently had dismissed as impractical.

Reuters reported in November last year that Tesla was preparing to file for an IPO. For the quarter ended March 31, Tesla’s losses widened to US$29.5 million, from $16 million in the same period a year ago. Underwriters of the offering are Goldman Sachs, Morgan Stanley, JP Morgan and Deutsche Bank Securities.