Tesla interest wanes, stock below IPO price

TSLA.png By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Shares of Tesla Motors sank below their initial public offering price Tuesday and continued to remain depressed Wednesday.

The electric car maker raised $266 million through its June 29, IPO, which put a $17 price tag on shares. And investors snapped up the stock, sending shares up as high as $30.42, or up 79% over the IPO price.

But since that opening run, the Palo Alto, Calif.-based automaker's shares have waned. Tesla's (TSLA) stock fell 19% Tuesday to $16.11, down more than 5% from its IPO price.

Shares fluctuated Wednesday, falling as low as 3.4% to $15.56 and edging up a mere 2.1% to $16.45 in early trading.

The sell off could be linked to Tesla's lack of financial strength. Owned by PayPal founder Elon Musk, the seven-year old auto company lost $55.7 million last year and $260.7 million since its inception.

"Tesla is a company that has tremendous promise, but has been unable to turn the perception of what it can do into a financially profitable model," said David Menlow, president of IPOfiancial.com, an IPO research site. "It's going to take years to accomplish that."

The early enthusiasm was likely thanks to Tesla's launch of the Model S, an electric sedan that the company says will sell for a minimum of $50,000 in 2013, more affordable than the $100,000 Roadster sports car Tesla currently sells.

But the Model S so far just has just one operable prototype, and no final design or manufacturing process. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 28,989.73 -170.36 -0.58%
Nasdaq 9,314.91 -87.57 -0.93%
S&P 500 3,295.47 -30.07 -0.90%
Treasuries 1.68 -0.06 -3.39%
Data as of 2:27am ET
Company Price Change % Change
Intel Corp 68.47 5.15 8.13%
Advanced Micro Devic... 50.35 -1.36 -2.63%
Ford Motor Co 9.00 -0.14 -1.53%
General Electric Co 11.71 -0.06 -0.51%
Bank of America Corp... 33.54 -0.58 -1.70%
Data as of Jan 24
Sponsors

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.