Tesla Surges 40.53% In First Day Of Trading
Shares of electric car company Tesla Motors (TSLA) rallied $6.89 or 40.53% from its opening price of $19, to close at $23.89, making the first U.S. auto manufacturing company IPO since 1956, when Ford (F) went public, a huge success. 18,767,561 shares of Tesla traded hands.
Yesterday, Tesla announced that it was raising the size of the IPO by 19.81%, from 11.1 million to 13.3 million. The company ended up selling those 13.3 million shares at $17, compared to its planned offering price of $14-$16.
Highlighting the huge demand for Tesla’s stock, the it was a horrible day for the stock market, with all the major indices down over two and half percent. The NASDAQ and the S&P 500 indices actually dropped 3.85% and 3.10% respectively.
All thirty stocks in the Dow Jones Industrial Average closed lower and only one stock, Zimmer Holdings (ZMH) among the five hundred in the S&P 500, managed to close higher. ZMH added $0.03 to close at $54.60.
