Tesla Sags Below IPO Price of $17
It wasnít that long ago when it would have cost you over $30 to buy one share of Tesla Motors (TSLA).
As a matter of fact - it was only last week.
As years of slow build-up, Tesla Motors finally went public on June 29th, 2010 amid great fanfare.
On the first day of trading, Tesla opened at $19 ($2 above its IPO price of $17) due to strong demand for shares. Many people are obsessed with Tesla Motors (and the idea of electric-powered cars), and this translated into very strong demand for TSLA shares on its first day of trading.
As mentioned, Tesla Motors opened at $19 on June 29th, 2010. The shares didnít stop there - by the end of trading, Tesla had closed at an impressive $23.89 per share.
Many people felt that empty hype was propelling the shares, and that things would return to normal on June 30th.
On June 30th, TSLA opened up at $25.79 per share. The stock continued to trend higher in early trading, reaching as high as $30.42/share before starting to pull back. Tesla Motors ended up closing at $23.83 on June 30th.
The people and investors behind Tesla Motors (especially Elon Musk) were obviously extremely happy with the companyís strong start as a publicly traded firm, but could it continue?
The answer, at least in the short term, has been no.
Since trading above $30 per share on June 30th, Tesla Motors has been steadily trending lower.
Actually, trending is not an appropriate word - instead, the stock has plunged lower.
At the close of trading earlier today (July 7th, 2010), Tesla Motors was trading at just $15.80 per share.
This is far below its June 30th closing price of $23.89 per share, and miles below its midday June 30th peak price of $30.42.
Investors in Tesla Motors should be very worried about the fact that the company is already trading below its IPO price of $17/share. That is never a good sign.
It should be interesting to see how shares in Tesla Motors do over the coming weeks and months, especially now that the IPO hype is starting to fade.
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Filed under: General Market News