Welcome back to Baby Breakerdom! This week's quest to uncover budding Rule Breakers finds electrifying support for an electric sports car and a passage to returns in India.
First up is Tesla Motors, which is developing an electric sports car for high-end consumers. Last week, the company secured $40 million in new financing. And the list of investors is impressive, including Elon Musk, founder and CEO of rocket-maker Space X and chairman of Tesla. Musk also founded PayPal, which he sold to eBay (Nasdaq: EBAY ) for $1.5 billion in stock in 2002. Musk co-led the financing round with VantagePoint Venture Partners, according to VentureWire.
Tesla's concept has yet to be revealed to the world, but it's very likely to mirror at least the function of the X1 car built by rival Wrightspeed. And that's just plain cool. I mean, seriously, any car that goes zero to 60 in three seconds, as the X1 purports to, has me curious. Save me cash at the pump and I'll be salivating. Which, I'm sure, is why VentureWire reports that the new Tesla could easily be priced over $100,000.
Regardless, the deal comes at an interesting time. Economic jitters have the stock market in a tizzy. Consumer confidence has been shaken. And mortgage bankers are lamenting the end of the housing bubble. Not exactly the time you'd think of rolling out an ultra-spendy new sports car, is it? Nope. Are those rules I hear breaking?
Next up is India. Investments there and throughout Southeast Asia increased by $1.2 billion during 2005. Plus, the Indian government says the country's gross domestic product expanded by a breathtaking 9.9% in the first quarter. And now, VentureWire reports that some Silicon Valley VCs are setting up on-the-ground operations to take advantage of what many still consider a massive opportunity.
One firm in particular, Canaan Partners, told VentureWire that it planned a local office that would assist with funding two to five Indian start-ups a year. The investments will come from a recently closed $450 million fund. That's good news for Rule Breaking investors. Two of India's largest technology services firms, Infosys (Nasdaq: INFY ) and Wipro (NYSE: WIT ) , already trade on U.S. exchanges. Sharp increases in hands-on U.S.-backed private equity funding should increase the field dramatically.
That's all for now. See you back here next Friday when we continue the quest to find the next ultimate growth stock.
For more Rule Breaking Foolishness:
- Check in with last week's infants.
- These hot stocks actually go up.
- Is India really all that? Yes! No! Vote.
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Fool contributorTim Beyersdidn't own stock in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.