As predicted, electric car company Tesla Motors has filed the documents required for an initial public offering later this year.

According to a statement filed to the US Securities and Exchange Commission, the company wants to raise up to $100 million. Tesla is mainly famous for its electric sports car the Roadster, although it has announced plans for a sedan, the Model S.

“This could propel them into a more prominent position in the auto industry,” David Menlow, president of IPOfinancial.com, told the LA Times. “The question is how they’re going to be able to rein in their costs.”

It’s a big question, and anyone who fancies owning a chunk of Tesla should glance over the ‘risk factors’ section of the Securities and Exchange filing.

Among other things, this notes, “We have a history of losses and we expect significant increases in our costs and expenses to result in continuing losses for at least the foreseeable future.

The company notes that the performance of the batteries in its cars declines over time and that after about 7 years they will hold around 60 to 65% of their original charge, with a concomitant decrease in the car’s range. The “may negatively influence potential customers’ decisions whether to purchase our vehicles”, it warns.

It also says that it has received only a “limited number” of current reservations for Roadsters and Model S sedans. There are also “significant barriers” to be overcome in the production of the Model S.

The Wall Street Journal notes that another car company is also plotting an IPO this year: General Motors. “Tesla still has a far way to go before becoming anything more than a niche, feel-good vanity car,” it says writes. “Right now, neither of these companies represents a deeply compelling purchase.”

Image: Tesla