On a day when the rest of the stock market was tanking, Tesla Motors cruised to an IPO win worth $226.1million.
Concerns over consumer confidence, the European economy and growth in China brought the market to its lowest level of the year finishing down 268 points. Don’t tell Tesla. In a clear testament to the position the automaker has already achieved as a brand, investors lined up for a ride as the company became the first American car manufacturer to go public since Ford in 1956.
Tesla managed to rake in considerable cash, topping the tape on a day when stock valuations seriously stumbled.
Shares of TSLA opened at $17, jumped to $19, then fell as low as $17.54 in the first 15 minutes of trading on Nasdaq. The price leveled out at $18.11.
It may be time to begin talking about Tesla’s magic. This is a company best known for producing a high-priced and extremely elegant electric roadster. Tesla has yet to turn a profit and has burned through more than $300 million since its founding in 2003.
But the company has become an international hit with key investments from Daimler and Toyota, which agreed to buy $50 million worth of stock upon completion of the IPO. The U.S. Department of Energy loaned Tesla $465 million to help build the Model S, which the company has described as an “all-electric family sedan.” Barely off the drawing boards, the Model S will be for families that will admire its sleek lines and are willing to fork over the nearly $50,000 sticker price.
With the IPO, the company’s momentum is clear, leading to some speculation about whether we can expect a Tesla takeover somewhere down the road. CEO Elon Musk appeared to leave one of the sleek doors ajar. “Our goal is to remain independent,” Musk said in an interview with Bloomberg Television. “Being acquired isn’t out of the question. It’s just not something we’re aiming for.”