Tesla Motors Inc.'s initial public offering of shares was trading at Tuesday at $18.13, above market expectations of $14 to $16 each
, according to NASDAQ.
The Bay Area-based electric automaker had hoped to earn $209.7 million if shares sold at $15, with every extra dollar per share worth $11 million to the company, money slated for a planned electric sedan.
Shares opened at $17, suggesting a $22 million windfall.
The IPO is also a windfall for CEO Elon Musk, whose stake will fall from 36 percent to as little as 28 percent after the IPO, Dow Jones reports.
The offering includes 13.3 million shares, with 93 million outstanding following the offering.
|Nikola would be proud...|
In May, the company announced a partnership with Toyota whereby Tesla would build electric cars in the old NUMMI plant in Fremont
, which it purchased.
Musk had projected a NUMMI operation that would initially produce 1,000 jobs, ramping up to 10,000 jobs in 2012 as the company produced a projected 20,000 cars annually. At the time, those seemed like rosy numbers from a company that has yet to make money selling boutique electric sports cars. By March 31 it had sold 1,063 $109,000 roadsters, with reservations for 110.
Musk had said the lack of profitability to this point could be attributed to investment in the company's ambitious plans to target mainstream consumers. Tuesday's IPO windfall suggests the company now has a $231.7 million war chest to follow through with its grand plans.