After an early interest in Tesla Motor common stock, things haven’t been so peachy, as a sell-off has given a big time reality check to long-term investors. Shares of the company closed on Tuesday at $16.11, down 16 percent for the day.
Near the end of the trading day, the stock fell as low as $15.83. The final closing price was 47 percent lower than the high mark for the stock, which was $30.42. That high water mark occurred on the second day of the stocks trading.
Around 13.3 million shares of the company were sold during the first public offering at a price of $17. This big first day helped Tesla raise $226.1 million for the company.
Many people believe that the reason for the stocks plummeting is down to the price of the cars. Few people are able to buy a car worth $109,000, especially an electric car. Other reasons include recall issues, delays with the Model S , and the company’s high debt levels.
The Tesla Model S should be out around 2012 at a cost of $50,000. The company plans to make around 20,000 sedans every year.