Tesla Motors’ strong trading debut sparks hopes for electric-car market

Tesla Motors

Elon Musk, the co-founder and CEO of Tesla Motors, told CNBC on Tuesday that the Palo Alto, California-based company’s initial public offering (IPO) received an “incredibly positive outcome from the smartest investors in the world” and raised over $200 million.

According to filings, Tesla managed to sell 908,958 shares at a price of $17 per share. The electric carmaker’s IPO not only helped Tesla in restoring some of its wealth staked on the company, but also helped it rise 41 percent – marking the second-biggest rally for an IPO in US this year.

Talking about the IPO, Robbie Diamond, president of the Electrification Coalition, said that the Tesla stock offering “is a good sign that people believe electric vehicles have potential.” The strong trading debut became evident from the fact that the company’s first day of trading on Tuesday, sent the share prices soaring from $17 to $23.89.

Saying that the investors were making a smart bet, Musk added: “When people look at the list of the investors . . . they will be amazed at the quality and strength of the investor group in Tesla.”

Meanwhile, as per a calculation by Bloomberg, the sale of Musk’s shares fetched around $15 million.

In February, the 39-year-old Musk said in his divorce-related filing that he had merely $650,000 in “liquid assets” and got loans from friends to pay fees and support for his separated wife Justine Musk.