Tesla shares surge in trad­ing de­but

The Kansas City Star (Sunday) - - BUSINESS | -

Shares of Tesla Mo­tors Inc. gained more than 40 per­cent in their trad­ing de­but Tues­day af­ter the elec­tric car man­u­fac­turer raised more money than ex­pected in its ini­tial stock of­fer­ing.

In­vestors snapped up Tesla’s shares even as the broader mar­kets took a beat­ing. The stock soared $6.89, or 40.5 per­cent from its of­fer­ing price, to close at $23.89 — mark­ing the sec­ond-biggest first-day gain among ini­tial pub­lic of­fer­ings this year. Tesla’s per­for­mance was a feat in a sour mar­ket that has forced many com­pa­nies look­ing to raise funds through IPOs to ac­cept lower prices to get deals done.

Tesla, based in Palo Alto, Calif., is the first U.S. au­tomaker to go pub­lic since Ford Mo­tor Co. held its ini­tial pub­lic of­fer­ing in 1956. The of­fer­ing raised $226.1 mil­lion af­ter sell­ing 13.3 mil­lion shares priced at $17 apiece. Tesla had ear­lier ex­pected to price just 11.1 mil­lion shares at $14 to $16 per share. | The As­so­ci­ated Press

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