Tesla increases IPO size by 2.2 million shares


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Tesla Motors Inc. ( TSLA ), the most famous electric-car manufacturer in the world, said that it and its underwiters would offer 2.2 million more shares than previously announced, for a total of 13.3 million share. The IPO will raise as much as $244.8 million, reports the Wall Street Journal . Tesla's filing with the SEC puts the price range between $14 and $16 per share.

The deal is expected to price after close, and will begin trading on NASDAQ under the ticker symbol "TSLA."

So far, the company has not been particularly profitable, increasing its losses to $29.5 million in the first quarter of 2010 and enduring a recall in 2009 for almost 350 of its Roadster electric sports cars as a result of a manufacturing error at Lotus, the English auto manufacturer which builds the chassis.

The Tesla Roadster and Roadster Sport have been widely publicized and critically acclaimed as the first serious, "green" performance cars, with a 0-60 time of under 4 seconds, quarter-mile times of about 12.5 seconds and an electronically limited top speed of 125 mph.

However, with the car's niche appeal, high price point (over $100,000 even after tax credits) and limited production, only slightly more than 1,000 have been sold. The company is planning to produce and sell a more practical family sedan, the Model S, in 2012. ADNFCR-1724-ID-19862240-ADNFCR

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , US Markets

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