Tesla Motors to raise $185M in IPO, Toyota deal

NEW YORK (AP) - Electric car maker Tesla Motors set terms for its highly anticipated IPO saying it now hopes to raise about $185 million by selling shares to the public and to Toyota Motors.

Tesla and its stockholders will sell 11.1 million shares for $14 to $16 each in an initial public offering. Toyota will invest another $50 million in the company. The Toyota deal was announced in May.

The Palo Alto, Calif. company currently makes just one vehicle, the high-end Roadster sports car. It is working on a mass-market sedan with Toyota Motors Corp. that is expected to start selling in 2012 for less than $50,000.

Until the sedan - the Model S - hits the market, Tesla expects continuing quarterly losses. It has lost $290.2 million since 2003.