Tesla boosts offering

The electric car maker, based in Palo Alto, says its IPO will be 13.3 million shares, instead of the planned 11.1 million. That would suggest a stronger-than-expected interest in the company, even though it could be a decade or more before electric car technology gains a foothold in the market. Company lost about $55 million last year. For now, it seems like a vanity stock. From the WSJ:

"They're trying to sell this as a tech company, but it's still a car," said John Fitzgibbon, president of IPO rating firm IPOScoop.com, who has reservations about the company's financial performance but believes the IPO will perform well. "It's still a ways from a touchdown; they need to be producing a sufficient number of cars in order to generate net income."

Trading is expected to begin tomorrow. Company is looking to raise up to $185 million.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
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