This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Tesla Motors vs. GM: Whose IPO Will Win?

Stocks in this article: TSLANSANY

(Story updated with GM update on international goals and analyst reaction to GM IPO)
NEW YORK ( TheStreet) -- Two of the most widely discussed IPOs of late have been those of Tesla Motors, which launches Tuesday, and GM, which is slated for later in the year. Indeed, on Jim Cramer's Monday Stop Trading! segment on CNBC, Cramer declared that "GM's a real business ... Tesla isn't."

Tesla's much anticipated, sleek, Model S electric car has lot to do with why investors are so enthused about the company. Deliveries for the cars are expected to begin in 2012 with a base price of $49,900 -- offering car buyers a chance at owning a beautiful piece of machinery for a far cheaper price than Tesla's $100,000 electric Roadster sports car.

While investors and car enthusiasts alike are eagerly awaiting the final product, analysts have reason to be skeptical about Tesla's ability to get the product to the market on time. Why? Because neither the purchase of the plant where the Model S would be made nor its final design plans are complete.

Furthermore, the unprofitable electric automaker's mere handful of dealerships -- next to the thousands that electric vehicle competitors like Nissan (NSANY) and GM's Chevrolet have, combined -- has also been a cause for concern. As Cramer noted on Stop Trading! Monday, "it's sold like 1,000 cars."

Tesla's initial public offering occurs on Tuesday and is being priced above previous expectations; the automaker said that its IPO of 13.3 million common shares was priced at $17 a share, above the offering price of $14 to $16 a share. Tesla shares is to be trading under the ticker symbol TSLA.

Meanwhile, GM, which is barely more than a year out of its government-backed bankruptcy, is expected to launch its IPO this year. According to Reuters, GM's IPO could be one of the biggest ever in the U.S., raising as much as $20 billion and reviving consumer confidence in the company and its brands.

Reuters sources note that the GM's offering will probably result in a minority stake in GM for the U.S. government while allowing the company to raise new funds.

Currently, the Treasury has a 60.8% stake in GM stock after bailing out the automaker with $50 billion last year. Reuters reports that the Treasury wants to sell roughly 20% of this stake in the sale.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs