Tesla Stock Shares Plummet

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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.

Source: Freep.com

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10 comments:

Because its made from high-end components! That is the reason for being too costly. I understand how did the marketing team of Tesla studied the market value of this unit.

I agree with you, I think there is a problem on the top management. However, Do have any news about the strategies they would like to implement in order to survive on the crisis they are experiencing? We have to be more observant on the things that is happening around us. Or better leave better suggestions.

@Mikko_Salvatore:yeah, you’re right they make high-end electric sportscar but no quality at all! I think the batmobile is much better compare to this car. And based from what i have remembered they don’t have a production that appeals to me.

Isn’t that what every company on wall street pretty much is? When most people start a company, they have a vision or a dream for what they want the company to become. I would say that all companies are dreams and visions of somebody.

Tesla is linked to Goldman Sachs, there is something evil brewing, someone is going to lose money and its not going to be Goldman sachs.

TESLA is a high-end electric sports car maker and no question about that. But I guess they should lower their price.

This company is going to go bankrupt. There are articles about how Elon Musk is broke. I wouldn’t invest in a company with a CEO like that.

They were betting on Tesla’s future as a player in the electric car market.

I agree, and if I’m not mistaken, they failed several times on tracking and safety testing, but for sure they’ve already learned from their mistakes.

Tesla is a pioneering Auto company. That comes with many challenges and possible faults. It comes with a lot of mistakes, and eventually they will be overtaken by other electric cars at better prices.

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