Tesla shares slump below IPO price as investors bail

LA Times ^ | 7-6-10 | Tom Petruno

[dynachrome]

Investors who bought Tesla Motors Inc.’s initial public stock offering last week thought they had a hot one.

They did -- for a day and a half. But it has been all downhill since.

Shares of the electric sports car maker plunged for a third straight session Tuesday as investors bailed out, pushing the stock below the IPO price of $17.

Palo Alto-based Tesla closed down $3.09, or 16.1%, to $16.11.

Despite the high hurdles facing the company’s bid to become commercially successful, the hype surrounding the IPO -- the first for an American carmaker since Ford Motor’s offering in 1956 -- fueled strong interest.

[dynachrome]

Not a big market for a very expensive electric sports car.

[jessduntno]

“Not a big market for a very expensive electric sports car.”

Pump and dump by the green stock pimps.

[Tijeras_Slim]

Albuquerque tried to get them to build here. Out bid in incentives by Palo Alto. Dodged a bullet on that one.

[SJSAMPLE]

It seems the stock price has the staying power of the car itself.

[doodad]

See the Top Gear test of them and you will see why.

[screaminsunshine]

If it had bag racks it might make a good golf cart.

[The_Victor]

You mean the public doesn't want to pay $100k for a car that can go 125mph for 20 minutes? I'm shocked....

[org.whodat]

The problem is that it wears the playing cards out to fast when you put them on the spokes to make roar.

[ILS21R]

I like the Tesla. I’m gonna buy one and put it next to my pet rock.

[domenad]

Wow I’m stunned. I can’t believe the stock is trading over $10.

[SpottedBeaver]

If it had bag racks it might make a good golf cart.

From the tee to the green in three seconds flat.

[stainlessbanner]

Looks like their debt is mounting....limited market segment for a $100k electric car

[Thermalseeker]

Out bid in incentives by Palo Alto.

Given the ever increasing cost of doing business in CA, and the basket case that CA has become, any informed investor in their right mind wouldn't consider investing in Tesla simply by virtue of the fact that they are trying to manufacture in CA. On that basis alone is enough evidence for an investor to look elsewhere, never mind that their product isn't practical and has an extremely limited market.....

[Red Badger]

Rest In Peace, old friend, your work is finished.....

If you want ON or OFF the DIESEL ”KnOcK” LIST just FReepmail me.....

This is a fairly HIGH VOLUME ping list on some days.....

[nascarnation]

I think outfits like Tesla and Fisker only work if they can extract huge govt subsidies. Hopefully a Republican takeover in November will put a screeching halt to this stuff.

[catnipman]

So Goldman was the underwriter, hey? Hasn't everyone learned yet that the whole point of Goldman trading with you is so that they can f**k you? (BTW, I highly the book "The Big Short" by Michael Lewis. It's about how the housing crisis occurred and who was at fault. Lewis is probably the best non-fiction American writer today. He does amazing research, and is an extremely gifted writer. Most of his non-fiction books unfold as if they are an adventure or mystery story unfolding, with a surprise ending, even! His books are quite engaging, which is quite a feat for non-fiction books that most other writers would pen in a dry-as-dust style.)

Even the LA Slimes notes:

He noted that Goldman and the other brokerages backing the deal have to wait 40 days from the IPO date to issue their first research reports on the company -- at which point they’re likely to paint a glowing picture of Tesla’s future, hoping to drum up more interest in the stock.

Basically, if Goldman is involved, you should run away screaming your head off as fast as you can!

[jmaroneps37]

If we had an honest media someone would be investigating this. It stinks of fraud.

[TexasTransplant]

It’s just not enough “Stimulus Money” our Grandchildren need to make sure this Company and every Union Employee survives and Retires !!!! /s

[CapnJack]

Appropriate picture ..

[Richard Kimball]

Has Albuquerque ever been mentioned in a song besides By the Time I Get to Phoenix?