Tesla Motors shares sink as IPO excitement wanes |
| The Associated Press - Jul 1, 2010 |
Shares of Tesla Motors Inc. sank Thursday as the fervor surrounding the electric car maker's blowout public offering washed away.
The stock slid $1.87, or 7.9 percent, to settle at $21.96 on its third day of trading, but was still 29 percent above the $17 IPO price. Investors ran shares up to trade as high as $30.42 Wednesday, betting on Tesla's future as a player in the electric car market.
But that excitement waned as investors began to consider the Palo Alto, Calif.-based company's current performance. Tesla has not had a profitable quarter since it was founded in 2003 and has sold only about 1,000 of its high-end electric cars to date.
"There has just been so much buzz and people have been motivated to buy the stock based on the notion of a sexy, green-tech company and not on an understanding of its business plan," said Francis Gaskins of IPOdesktop. "Tesla brought in people who wouldn't normally invest, a lot of inexperienced IPO buyers."
Read Full Article from The Associated Press
- Posted: 2010-07-01 22:58:57
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