Summary Box: Shares of electric car maker Tesla gain more than 40 percent on 1st trading dayBy AP
Tuesday, June 29, 2010
Summary Box: Tesla shares soar in 1st-day trading
THE STOCK: Shares of Tesla Motors Inc. soared in their first day of trading Tuesday, gaining $6.89, or 40.5 percent, to close at $23.89. That marked the second-biggest first-day gain among initial public offerings this year.
THE OFFERING: Tesla’s initial public offering raised $226.1 million after selling 13.3 million shares for $17 a piece. Tesla had expected to sell just 11.1 million shares at $14 to $16 per share.
THE RISK: Tesla has never made a profit and has sold just 1,000 of its Roadster electric cars. But it is betting that buyers will take to electric cars once it rolls out its Model S sedan in 2012.