Tesla shares zoom on first day of trading
Tesla, appearing on the Nasdaq stock market under the ticker symbol “TSLA,” traded at about $18.40 in early afternoon trading. Shares initially opened around that level, then plunged before climbing back up.
TeslaÂ’s underwriters, sensing bigger-than-expected investor appetite for the offering, raised the initial sale price to $17, above the $14 to $16 expected range. They also increased the number of shares to be sold in the offering by 20 percent, to more than 13 million shares.
The offering garnered Tesla more than $226 million in proceeds.
So far, investors appear unconcerned about some of the risks of investing in Tesla. Among those, as noted by the company: its constant losses since its founding its dependence on access to loans from the Energy Department and its reliance on one car model, the $109,000 Roadster. The more affordable $50,000 Model S isnÂ’t expected to hit sales floors for another two years.
Related News
U.S. Electricity Sales Projections Continue to Fall
NEW YORK - Electricity producers and distributors are in an unusual business. The product they provide is available to all customers instantaneously, literally at the flip of a switch. But the large amount of equipment, both hardware and software to do this takes years to design, site and install.
From a long range planning perspective, just as important as a good engineering design is an accurate sales projections. For the US electric utility industry the most authoritative electricity demand projec-tions come from the Department of Energy’s Energy Information Administration (EIA). EIA's compre-hensive reports combine econometric analysis with judgment calls on…
