UPDATE 3-Tesla to raise $185 mln, IPO to trade June 29

* IPO to price June 28, shares to trade June 29-source

* Private 3.3-mln share sale to Toyota to raise $50 mln

* Net proceeds to Tesla seen at $185 mln (Recasts, adds details on IPO timing, analyst comment, background, byline and edits throughout)

By Poornima Gupta

SAN FRANCISCO, June 15 Shares of Tesla Motors Inc are expected to trade on June 29 with the U.S. electric carmaker planning to raise $185 million from an initial public offering and a private sale to Toyota Motor Corp (7203.T).

Tesla, best known for its $109,000 Roadster, said in a regulatory filing that it will offer up to 11.1 million shares in its initial public offering at $14 to $16 per share.

Also, Tesla will sell about 3.3 million shares to Toyota at the IPO price, in a private placement that will raise $50 million.

After costs, the net proceeds to Tesla from the IPO and private placement will come to $185 million at $15 per share, said the company, which has applied for a listing on the Nasdaq stock market under the symbol "TSLA" (TSLA.O).

The Palo Alto, California-based company's shares are expected price on the night of June 28 and trade on June 29, an IPO market source told Reuters.

Tesla's public debut comes amid growing interest in green technology and battery-powered vehicles, and as major automakers are gearing up to launch electric cars.

Tesla would be the first U.S. car company to go public since Henry Ford's Ford Motor Co (F.N) made its debut in 1956.

The electric carmaker would be "one of the few exciting IPOs of the year," said IPOdesktop.com President Francis Gaskins.

The company's alliance with automotive giants Toyota and Daimler (DAIGn.DE) is a vote of confidence in the company and gives it a big boost, he added.

Tesla, which is working on a $50,000 Model S sedan, recently announced its intention to develop a new model with Toyota.

But despite the enthusiasm that Tesla's IPO is generating, the company's business plan is fraught with risk.

Tesla has said in regulatory filings that it is facing a production shutdown of its only car, Roadster, after 2011, due to tooling changes at an unnamed supplier. A next-generation Roadster is not expected until at least a year after the launch of the Model S sedan in 2012,

Also, the company has yet to make a profit, and its losses widened to $29.5 million for the quarter ended March 31, from $16 million a year ago. It does not expect to make money until its Model S starts selling in significant volume.

Tesla said it will use the IPO proceeds to fund expansion of Tesla dealerships, for working capital and for general corporate purposes. The company will sell 10 million shares while shareholders will offer 1.1 million shares.

Underwriters of the IPO are Goldman Sachs, Morgan Stanley, JPMorgan and Deutsche Bank Securities.

Tesla's largest shareholder, Chief Executive Elon Musk, will own at least 28.8 percent of the company following the offering. Musk going through a divorce dispute that involves his stake in Tesla, and a settlement could diminish his stake.

The other large shareholders after the offering would be Blackstar Investco LLC, an affiliate of Daimler, with at least an estimated 8.12 percent, and Al Wahada Capital Investment LLC, a subsidiary of the Abu Dhabi Water and Electricity Authority, with 7.92 percent.

Silicon Valley venture fund VantagePoint Venture Partners, an early stage investor in Tesla, would own at least 7.3 percent after the IPO. (Additional reporting by Archana Shankar in Bangalore; Editing by Gopakumar Warrier)