Thanks to a blockbuster IPO, Tesla Motors has finally secured additional financing and investment from Toyota Motors. The Toyota Motors/Tesla Motors partnership is one of the numerous Tesla motors has developed in a quest for a mass-market, all-electric car. Is the investment going to be enough to keep Tesla Motors in business?
Article resource: Tesla Motors secures Toyota's investment with IPO by Auto Deal Expert
Now Tesla Motors
Tesla Motors is a business with the goal of creating all-electric vehicles. There are two Tesla Motors electric automobiles on the market right now -- both more than $100,000. The goal of Tesla is to, eventually; bring an all-electric sedan to the market for less than $50,000.
Toyota's investment in Tesla
The investment that Toyota and Tesla announced a few months ago was conditional upon Tesla completing an first public offering. Now that the TSLA IPO is completed, Toyota motors will complete its investment. Tesla motors will purchase the now-closed NUMMI plant. Toyota is there to advice Tesla in getting a vehicle to market.
Tesla Model S is new
An all electric sedan automobile is what the Tesla Model S is going to be. The 300-mile range of the current Tesla roadsters is the target range for the sedan. Tesla aims to sell the Model S for under $50,000, which is considered the "midrange" price point for most autos. Government tax credits shared with fuel cost savings are likely to add up to make this car more affordable for most buyers. The model S should be on the market by 2012.
Tesla receives some other investments
Tesla Motors has gotten investment from more places than just Toyota Motors. Daimler-Chrysler as and also the U.S. Government has given Tesla Motors loans to help bring the Model S to market. These investments come despite the fact that Tesla Motors has run at an operating loss each year. The hope is that with the IPO investment money, Toyota's help, the U.S. Government's help, and also the Daimler-Chrysler investment, Tesla may become profitable in the next 3 years.