Electric Automaker Tesla Motors' (TSLA) Stock Price Closes 40% above IPO Price on First Day

Business IPO News: Tesla's electric Model S, which the company hopes will reboot its fledgling empire

Tesla Motors, an electric car manufacturer, broke into the NASDAQ today with its share price closing around $7 above its initial offering price. Under the symbol TSLA, the stock officially made its debut at 11:26 a.m., and exceeded many expectations by closing 40% above its IPO price. In less than an hour, more than 8.4 million shares of Tesla stock had been traded, largely due to excitement over their newly announced Model S.

TSLA chart on first day of trade
Initially priced at $17 a share, the rush by investors bumped up the price and raised $266 million for profit-challenged Tesla Motors. Though Tesla has only sold a dismal 1,000 vehicles to date, many investors have high hopes for the company's upcoming Model S - a stylish electric sedan it plans to sell for a minimum of $50,000. The Model S is slated to go on sale in 2013.

Tesla has never had a profitable quarter, and doesn't plan to until late 2012 when the Model S launch looms closer. IPO analyst, Matt Therian, reiterates this statement: "Investors that are interested in Tesla know that it's going to continue to burn cash until it gets Model S into commercial production. Tesla investors are really looking out to 2012.”

The first American car company to make an initial public offering since Ford in 1956, Tesla Motors has re-defined the electric car. The sleek Tesla Roadster is arguably the sole reason why larger automakers have seriously considered manufacturing electric vehicles. The highway-approved Roadster, Tesla's finest achievement, sits at the height of the electric car's potential in all aspects: power, speed, range and overall look.