Tesla Shares Plummeting
A few weeks ago, we brought you the story of Tesla Motors’ amazing IPO. After opening with a higher price than predicted, stock prices soared in the first 24 hours as buyers clamoured for their share in the first American automaker to issue an IPO since Ford did it back in the fifties.
However good the first day may have been, the critics were quick to point out the company’s massive debt, slow sales, small production capacity, far-off new products, and rocky executive history. Host of the famous Mad Money show, Jim Cramer, went as far as to tell viewers that “You want to get some on the deal and then get out. I think it’s going to be a bad company.”
And apparently he was right. After a 41% gain on that first day, the stock has fallen with alacrity. Trading right back around the $17 dollars it cost when it opened on June 29th, the stock has proven quite volatile, leading to speculation as to the stock’s future. With Tesla employees and Elon Musk himself locked in to 180-day stock ownership periods, this could prove to be the straw that breaks the overpriced electric camel’s back.
