Tesla raises $226 million with IPO price at $17

Tesla raises $226 million with IPO price at $17

California-based electric car maker, Tesla Motors has managed to raise $226 million through its IPO which was priced at $17.

This is the first IPO in almost half a decade in US which has been able to sell its issue at the price which is higher than its earlier forecast price.

The car maker was able to sell 13.3 million shares and much above its estimated price of $14 to $16, showed the data released by Bloomberg.

In its filing with the SEC, Telsa has said that it will be using the money thus generated for paying for its factories and also look out for possible acquisitions.

Talking to the media, before the IPO came to the market, analysts had said that the issue will be risky for the investors. They now say that the issue has given good returns, not only to the company but also to its investors.

Interestingly, the IPO not only came to the market but also became a hit after 35 companies withdrew their issues looking at the volatile situation of the US capital markets. This data is for May alone.