Tesla shares surge in trading debut
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