Tesla shares, continuing retreat from post-IPO run-up, fall further below initial $17 price
By APWednesday, July 7, 2010
Tesla shares still falling after post-IPO run-up
PALO ALTO, Calif. — Shares of high-end electric sports car maker Tesla Motors Inc. reached new lows Wednesday in their reversal from a big run-up following the company’s initial public offering last week.
Tesla shares fell 93 cents, or 5.8 percent, to $15.18 in afternoon trading. The latest drop came a day after the company slipped below its IPO price of $17 per share. The stock briefly traded below $15 after midday.
The copmany’s shares surged as high as $30.42 last week as investors considered Tesla’s role in the future of alternative-fuel vehicles.
Analysts have said the stock drop shows investors are worrying that the company, which hasn’t turned a profit since its founding in 2003 and has sold only about 1,000 cars, was overvalued.
Tags: California, North America, Palo Alto, United States