UPDATE 3-Tesla increases size of IPO by 20 pct

Mon Jun 28, 2010 4:32pm GMT
 

* Number of shares raised to 13.3 mln

* IPO now seen raising about $200 million (Adds details on market capitalization, analyst comment)

By Poornima Gupta

SAN FRANCISCO, June 28 (Reuters) - Electric carmaker Tesla Motors (TSLA.O: Quote) raised the number of shares it will sell in its initial public offering by 20 percent, an early sign that investor interest in the startup is strong.

The increase, which comes the same day the shares are expected to price, increases the number of shares being offered to 13.3 million from 11.1 million, according to a regulatory filing.

Tesla maintained the expected price range at $14 to $16 a share. Based on the midpoint of $15 a share, the IPO could raise about $200 million.

The Palo Alto, California-based company's public debut comes amid growing interest in green technology and battery-powered vehicles, and as major automakers are gearing up to launch electric cars.

The final pricing of the shares is expected later on Monday, and the stock is set to trade on the Nasdaq exchange on Tuesday under the symbol "TSLA" (TSLA.O: Quote).

Tesla Chief Executive Officer Elon Musk, during the company's "roadshow" last week, characterized the IPO as a technology play rather than a traditional carmaker stock.   Continued...

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