Tesla Stock: Well, the Brakes Work
After a few ebullient days in the left lane, Tesla Motors’ stock has careened to the right, dropping well below its offering price after an impressive IPO.
Shares in the electric-car company, which spiked to $30.42 before closing Friday at $19.20, slipped more than 15 percent Tuesday, falling to about $16–a dollar below the initial offering price of $17.
Quite the round-trip journey–and completed in just a week. Seems investors are slowly awakening to Tesla’s (TSLA) fundamentals, which, as I’ve noted here before, don’t exactly inspire the same confidence as its technology.
Comments
But if you keep one in your garage long enough, spit polished and shiny, it might just appreciate in value over the long haul. ;)
Posted by demodave at July 6th, 2010 at 11:26 pmCan anyone explain this? Their Mkt Cap is about $1.5B, but how much of the IPO money wnet back into the company? And how do they scale without consuming a huge amount more Capital. Once you get past the elitist consumer, you need customers who don't have a third car for back-up, so you need to stock spare parts in dozens of cities – CAPEX. Ad campaigns, factory recalls, etc. all need to be budgeted for the biz to scale.
Elon Musk already made his $15M. Set for life, I guess.
Posted by fstein at July 7th, 2010 at 4:10 amWow, you're so smart, I'll be sure to come to you for investment advice in the future. I guess the financials aren't bad because its a facking startup, but because of the result of some misfiring neurons in that thing you call a brain.
Posted by Shawn_The_Bohn at July 12th, 2010 at 3:45 am