Tesla IPO Expected To Start Trading Tomorrow (TSLA)

Tesla Motors' IPO is expected to price tonight at the high end of the $14-$16 range and the shares will begin trading on the Nasdaq exchange tomorrow under the ticker TSLA. The company manufactures high end electric cars and was founded by Elon Musk, a co-founder of PayPal. Despite the fact that Tesla has not turned a profit, and likely won't for some time, there appears to be demand for the shares. On Monday, the company boosted the number of shares it plans to offer in the deal by 20% to 13.3 million. In all, the IPO could fetch $244 million. Scott Sweet, senior managing partner of IPO Boutique, said that the Tesla IPO is "multiple times oversubscribed," and could pop 10% to 15% over the offering price on its first day of trading. Skeptics abound, however, pointing to the company's lack of profitability. Through March 31st, the company's net loss since inception is nearing $300 million, and Tesla is not anticipating becoming profitable until at least 2012. As of March 31, Tesla had sold 1,063 Roadster models to customers in 22 countries. The company said, however, that future profits will depend on the sales of its $50,000 Model S sedan. The Roadster sells for over $100,000. Certainly Tesla is an exciting company and the deal is attracting some interest, but a long term investment in the car maker should be viewed as speculative at this point.