After rising 41 percent on the first day of trading, stock in Tesla Motors has been in an alarming freefall. Yesterday, shares of Tesla Motors fell another 16 percent, landing below their initial offering price of $17 each. For those keeping track of such things, company head and largest shareholder Elon Musk's shares are now worth $433 million, a good bit less than their $457 million value after the IPO.
We're clearly not experts on the subject, so we'll tell you what more qualified people have to say. According to Josef Schuster, the Chicago-based founder of IPOX Capital Management LLC, "The company is a great concept with relatively weak fundamentals. Markets are weak and in a weak market right now this is hurting the company even more."
Financial expert Michael Holland explains, "They brought this thing into a market that was not rewarding hype... The stock did get its pop, and now it's plagued by the reality of the marketplace. The reality of the marketplace is that people aren't paying for dreams and visions."
[Source: Business Week, MarketWatch]