TSLA and RAX

16 Jun

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Tesla Motors earlier today filed documents for an Initial Public Offering.

Tesla Motors started out as a Silicon Valley venture-backed electric car company that was founded in 2003 by ex-PayPal CEO and Founder – Elon Musk.  He is also the current CEO and CTO of SpaceX, a space transport company fighting furiously to lower the cost to deliver equipment above out atmosphere.  He has a very impressive track record for tackling complicated problems.  It fits then, that he is the man to lead the new born electric car company in a war against such giants as Toyota and Ford.

Tesla’s first and only commercially available vehicle is the Tesla Roadster, a luxurious and purely electric speed demon that is valued at $109,000.  It is known for it’s sleek design and impressive 0-60 in 4.0 seconds and has made Tesla a household name.  They’ve sold about ~1,000 vehicles to date, which puts total revenue at about 100 million.  Unfortunately, Tesla has never reported a profitable quarter.

However, with the IPO, the partnership with Toyota, and a new strategy, Tesla hopes to take the world by storm.  Their plan is to use the funds from the IPO to expedite the time to market for their newest model – the Tesla Model S (do I smell a link to the Ford Model T??) sedan.  A much more affordable vehicle with a price tag at ~$50,000.

Tesla plans to offer their shares between $14 and $16 dollars, and I am interested.  Although they will face hard times in the next few years as sales of their Roadster dwindle and production of the new model ramps up, I think Tesla has a huge opportunity to shake up the Detroit-based old school Automobile Industry with their Silicon Valley roots.

In other news, I bought some RAX last Friday.  Rackspace is an IT hosting company.  They operate data centers all over the world and have a very promising cloud hosting platform.  In fact, I am using their cloud platform for one of my projects and can attest to it’s quality and affordability, as have many other techies I’ve talked with.

The rate at which data generation is increasing is higher than the pace at which our capacity to store data is increasing.  Their services will be in strong demand for the foreseeable future.  Their product is strong, and they are well positioned to take advantage of the huge growth of data generation in the next 10 years.

So much excitement this week, hope you are all enjoying it!

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