LAST UPDATE: 07/22/10 - DATE VIEWED:
09/04/2010
SUBTITLE:
BASIC INFO:
Tesla Motors shares sink as IPO excitement wanes
By ERIN CONROY (AP) JULY 2, 2010
NEW YORK 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."
(We have much more to say about this... and we're still wondering why Tesla refused all requests to review their cars...)
|
Log in to Read this Entire News Article
Click Here to View this topic's website:
|
Log in to Respond to this News Article
|
