Tesla Motors, Inc.: The First U.S. Car Company IPO Since 1956

Silicon Valley based automotive technology company, Tesla Motors, aims to develop a greater worldwide acceptance of electric vehicles as an alternative to the traditional internal combustion, petroleum-based vehicles that currently dominate the automotive market. Although its innovation to reduce gas emissions has won high acclaims, Tesla has limited sales in a limited market, and is making low margins due to high product costs and a lack of economies of scale. However, if oil prices continue to climb toward $200 a barrel and new electric cars, such as the Chevy Volt and Nissan Leaf, catch on with consumers, the upside for Tesla could be enormous. Can Tesla reach the tipping point?