Tesla hits $17 mark in expanded IPO


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Tesla Motors ( TSLA ) attracted heavy investor interest as it priced its initial public offering after trading on Monday, selling 13.3 million shares for $17 each. That represents 14 percent of the company and gives Tesla a healthy market capitalization of almost $1.6 billion.

Tesla will become the newest stock on the NASDAQ exchange, and its IPO is being characterized as a major success by analysts and experts. Initially, the company had planned on selling 11.1 million shares in the range of $14 to $16.

There are causes for caution and concern in the experimental car maker's offering. First, the company has had several years of negative revenue and its mass-market sedan, the Model S, is still several years away. In the meantime, it has only the sales of its Roadster and Roadster sport models to sustain it. Both are exclusive, low-volume sports cars.

The company has also been fraught with bad luck, with several of its executives dying in a tragic plane crash earlier this year. In 2009, a problem with Lotus' chassis necessitated a recall of many Tesla Roadsters.

Still, Tesla is a unique company, the first U.S. automaker to conduct an IPO since Ford in 1956. If the technology manifests itself in an affordable, luxurious sedan it could alter the way people commute forever. ADNFCR-1724-ID-19862430-ADNFCR

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance Business
Referenced Stocks: TSLA

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