With I.P.O., Tesla Bets on Electric Car’s Future

As Tesla Motors begins selling stock to the public on Tuesday, the offering’s success depends on how much investors are willing to bet on a car company that has never made a profit and expects to lose money until at least 2012.
Tesla will be the first automaker to go public since the Ford Motor Company held its initial public offering in 1956. It expects the stock sale to raise up to $185 million, The Associated Press reports.
The start-up company, which is based in Palo Alto, Calif., believes Americans’ taste in cars is changing. Most analysts agree that electric cars like Tesla’s will catch on as gas prices rise and environmental worries mount.
But Tesla faces bigger questions. It has lost $290.2 million since it was founded in 2003 and has not had a profitable quarter.
It does not expect that to change until it starts selling its next vehicle, a four-door electric sedan called the Model S, in large numbers. That is not scheduled “until 2012, or possibly later,” according to its filing with the Securities and Exchange Commission.

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