Tesla IPO. My thoughts


I’m interested in the IPO of electric car maker Tesla, but I know almost nothing about how to really get involved in IPOs, so I called Etrade where I have a small account. They showed me how to see the “IPO Underwritiers” for Tesla, TSLA, I looked at Goldman Sachs, but their telephone number didn’t jump out at me, so I called Morgan Stanley, who put me in touch with a local Morgan Stanley financial advisor in Vermont. He was nice enough to talk to me without a hard sell, so I kept talking. He said that while they may get some shares for their clients,  after they file an “indication of interest” they are not sure how many. If I want a certain amount of shares, I might want to go to a person or company that specializes in IPOs more, or maybe another one of the four underwriters. He also said some of these stocks open on the secondary market (public), lower then their IPO, or go lower after they start trading, or go lower after a quick rise. I could just put in a standing open order to buy at a specific price or lower.


I feel that there’s a slim chance the first IPO since Ford in 1956 might be able to successfully map the computer/web ethos onto a car company. And that they might also have the timing right. If that happens, then they could make it. What needs to happen is what Apple did with the iPod, iPhone, and iPad. An old product, made more usable and attractive then before, launched into the market with the right services and support.

Leave a Reply