Toyota joins investors including Germany's Daimler, the Abu Dhabi government and venture capitalists, taking a risk and hoping for success of the upcoming Tesla IPO. Tesla is well-known for its $100,000 electric sports car and Toyota's support will allow it to move ahead with production of its 'S' model sedan which will sell for about $50,000.
All IPOs carry risk and Tesla is no exception. The Tesla IPO prospectus includes 30 pages of risk factors, but investors have still seen fit to bet on the electric car maker's ability to serve the upper end of the passenger car market, wow the public and turn a profit.
Photo Credits: Eco Auto Ninja| jalopnik
Extreme Risk Stocks
Toyota Joins Impressive List of Investors Anticipating the Tesla IPO
Trend Themes
1. Electric Vehicle Boom - The increasing investment in Tesla and other electric vehicle companies indicates a growing trend towards sustainable transportation solutions.
2. Luxury Electric Vehicles - The development of the Tesla 'S' model sedan, supported by Toyota, reflects the rising demand for premium electric vehicles.
3. Investor Confidence in Tesla - Despite the risks outlined in the Tesla IPO prospectus, investor confidence in the company's ability to revolutionize the passenger car market remains high.
Industry Implications
1. Automotive - The automotive industry has the potential to be disrupted by the electric vehicle boom, as more companies embrace sustainable transportation solutions.
2. Energy - The rise of electric vehicles presents opportunities for the energy industry to develop and expand infrastructure for charging stations and renewable energy sources.
3. Technology - The development of luxury electric vehicles like the Tesla 'S' model showcases the intersection of technology and automotive industries, leading to potential disruptive innovation in both sectors.