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Old 06-28-2010, 09:12 PM
 
4,183 posts, read 6,524,262 times
Reputation: 1734

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Tesla prices IPO at $17, surpassing expectations - latimes.com

I'm excited. This electric car maker based in Palo Alto may yet revitalize the CA manufacturing sector - and it's a green company at that. It may yet be the next Google. The car designs look cool. Tesla already bought the Nummi plant in Fremont that was abandoned by GM/Toyota. Jobs jobs jobs!

Who says CA is on its way to oblivion?
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Old 06-28-2010, 09:17 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,761,592 times
Reputation: 17831
Sort of ties in to SpaceX which is CEO'd by the same guy, Elon Musk. SpaceX is based in Hawthorne and is building new rockets for space travel.


Elon Musk - Wikipedia, the free encyclopedia

Space Exploration Technologies Corporation - SpaceX
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Old 06-28-2010, 11:43 PM
 
Location: Mission Viejo, CA / San Rafael, CA
2,352 posts, read 5,253,449 times
Reputation: 539
I'm honestly surprised. The company has basically leaked money since inception.
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Old 06-29-2010, 09:42 AM
 
Location: San Jose, CA
7,688 posts, read 29,154,335 times
Reputation: 3631
Quote:
Originally Posted by Mr. Fantastic View Post
I'm honestly surprised. The company has basically leaked money since inception.
Right. They have brand recognition, but they don't have a viable business plan yet. They're basically using government funds to keep from losing even more money, and unless you're Blackrock, that can't go on forever.
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Old 06-29-2010, 09:51 AM
 
Location: Mission Viejo, CA / San Rafael, CA
2,352 posts, read 5,253,449 times
Reputation: 539
So they were able to raise $200+ million on $17 a share? That's lunacy. They only have two products, one of which has even remote general public appeal (Tesla Sedan). It took Hyundai over $1,000,000,000 to develop the Genesis Sedan and Coupe, Hyundai is still paying off the R&D for those cars.

I don't see the viability, but then again, I don't have a lot invested into the Auto Industry.
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Old 06-29-2010, 11:48 AM
 
4,183 posts, read 6,524,262 times
Reputation: 1734
Tesla's entry into the electric car market forces established car makers to retool themselves and produce cars that are "green". Whether Tesla itself will or will not be financially successful is less important than the fact that a new competitor is putting the established car makers' feet to the fire. We do need a paradigm shift in this country away from dependence on oil to run our cars.

Also, just because Tesla is receiving government loans doesn't mean that its business model is somehow invalid. Strictly speaking, the entire automotive industry was dependent on government support from its inception. Had the government not built roads and interstate highways during the 20th century, the automotive industry would not exist as extensively as it does today.

Same thing with internet-based businesses. Would Google even be around if the internet was not willed into existence by the US government? Internet - Wikipedia, the free encyclopedia
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Old 06-29-2010, 12:13 PM
 
Location: Northern California
3,722 posts, read 14,724,505 times
Reputation: 1962
Quote:
Originally Posted by Mr. Fantastic View Post
I'm honestly surprised. The company has basically leaked money since inception.
Tesla is a bottomless money pit. I wouldn't go anywhere near their stock offering.
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Old 06-29-2010, 12:59 PM
 
1,963 posts, read 5,623,003 times
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Tesla is the green Delorean! If they ever do a remake of Back to the Future, this definitely is the car for it.
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Old 06-29-2010, 01:52 PM
 
4,183 posts, read 6,524,262 times
Reputation: 1734
CNET review of the Tesla roadster: Videos - Free video downloads and streaming video - CNET TV
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Old 06-29-2010, 04:47 PM
 
Location: Mission Viejo, CA / San Rafael, CA
2,352 posts, read 5,253,449 times
Reputation: 539
Quote:
Originally Posted by ndfmnlf View Post
Tesla's entry into the electric car market forces established car makers to retool themselves and produce cars that are "green".
Umm, no. The only person who would believe the above is probably someone who bought lots of Tesla stock. That sounds almost like an advertising slogan.

Car companies have been "retooling" themselves to go green far before the "Tesla IPO". The Toyota "Prius Concept" started development in 1994. That's almost a decade before Tesla was even a company.

There's also significant debate on whether an electric car is all that green seeing as the production and disposal of the battery is one of the most pollution intensive processes in the world.
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