Tesla Records a Descend in Shares Below the Initial Price
Tesla Motors is facing serious share downfall despite the profitable head start the market witnessed in its debut-day. Tesla Shares recorded to worth less than their $17 original offering price on Tuesday, after the slid of the share price to $16.11.
Tesla Motor Inc. is the leading U. S. Company in the field of electric car manufacture that, although has not achieved any profit, recorded the highest initial offering in the U. S. auto market.
The decline of Tesla shares continued for four successive days resulting in a 16% loss in Nasdaq Stock Market composite trading. Tesla has previously sold 15.3 million shares at the original price of $17 before this current drop.
The falling automaker has intended to make use of the federal loan in order to upgrade its battery-powered S Model to push it into travelling for 160 miles per charge, in 2012. Tesla plans the release of 20,000 units of this model each year.
The U. S. Government has been in full support of this new technology as it will consequently reduce the U. S. oil use and, so cut down the dependence on foreign fuel sources. Barack Obama discussed the release of 1 million electric cars on the roads around U. S. A. by 2015.
However, Chairman Michael Holland reflected on Tesla’s loss by saying, “The reality of the marketplace is that people aren’t paying for dreams and visions”.
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