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Tesla IPO raises $226 million

American electric car maker Tesla Motors has sold 13.3 million shares, raising around $226 million, but the share price has since dropped.

The initial public offering (IPO) will provide investment for the company’s second electric car, the Model S saloon.

Tesla CEO Elon Musk sold almost 1 million of his own shares, with a further million being sold by other shareholders.

Although Tesla sold more shares, and at a higher price than expected, the share price has since fallen, but it’s still above the $17 IPO price.

Investors were excited by the sexiness of GreenTech, but Tesla, founded in 2003, has only sold around 1000 of its $100,000 electric Roadsters and the company is not yet profitable.

A new version of the Roadster, the 2.5, is coming soon, and the four-door luxury saloon, the Model S, is due in 2012.

Tesla has also sold $50 million shares to Toyota
, and has received a $465 million grant from the US government.

Keywords: Tesla Motors IPO