NEW YORK — Shares of high- end electric-car maker Tesla Motors ran low on voltage Tuesday, falling beneath the stock’s initial-public-offering price after a stunning run-up last week. Tesla shares lost more than 16 percent of their value to close at $16.11 — below the $17 the company got when it first sold the stock June 29.
Tesla’s shares had jumped 40 percent in their first day of trading as investors bet on the automaker’s future as a player in the electric-car market. “The euphoria has worn off,” Scott Sweet, senior managing partner of IPO research firm IPO Boutique, noted Tuesday. “In this market environment, people are not buying $109,000 cars.”
Tesla has not turned a profit since it was founded in 2003, and so far the company has sold only about 1,000 of its high-end electric cars. The Associated Press
