Tesla Offering 20% More Shares in IPO!

Tesla Motors Inc. is an electric vehicle research and manufacturing company based out of Palo Alto, Calif. In a move to raise more capital at its initial public offering, Tesla is going to offer 20% more shares. The Nissan Leaf, another all electric vehicle can be purchased at a discount with Nissan deals. Volkswagen is releasing a hybrid Jetta that will be found at a local VW dealer, and help it compete in the electric vehicles market. Also the Mazda Tribute is a hybrid vehicle offering that can be found at a Boston Mazda dealer.

The company is the first automaker since Ford in the 1950's to hold an IPO, and the IPO will be take place with recessed and slow markets throughout the world and America. Initially, Tesla anticipated offering around 11 million shares, but that number has gone up to 13.3 million shares. The pricing will remain the same of $14 to $16 per share.

Tesla is hoping to raise at least $213 million after it has had several unprofitable years due to the high research, manufacturing, and development cost of its initial models and technology. CEO Elon Musk is also going to offer more of his own shares at the IPO. He is a co-founder of Paypal and SpaceX and a serial entrepreneur.

The money will be used to purchase more factories and possible be used for acquisitions. Tesla does not anticipate profitability for another few years until it can scale up its production levels. There are only a handful of Tesla Roadsters, the company's premiere model, produced every year. Tesla will offer their Model-S sedan which is a full electric vehicle for large scale production in 2012. In the meantime, they hope to increase their production levels with the IPO and government funding as well.

President Obama has made it clear that he supports electric vehicle research as it will reduce dependency on foreign oil and improve the quality of the environment. Obama has set a goal to have 1 million electric and hybrid vehicles on American roads by 2015. Tesla received a $405 million dollar loan from the government to fund some of its initial research and production.