Tesla Motors Stock Falls, Focus on the Model S
Some Tesla Motors stockholders decided to take profits this week. The stock closed down 15% yesterday as investors who bought into the IPO 180 days ago were able to sell. The company’s IPO was in June.
The stock, which has soared from a low of $14.98 to $36.42 closed Monday at $25.55. The company’s only available product is the all-electric Tesla Roadster.
The Roadster gained an instant reputation as an exquisite sports car with exceptional acceleration (0 to 60 in 3.7 seconds) and a range of 236 miles on a single charge of its batteries. However, the luxury and power come with a price tag of over $100,000.
As of March of this year 1063 of the cars had been sold. The company’s new bet is on the Model S to be rolled out mid-2012. The seven passenger sedan will also be all-electric and feature a price tag of roughly $50,000, making it almost a mainstream vehicle. In the meantime, Tesla is not counting on quarterly profits, but is focusing its energies on getting the Model S to market on time.
Investors have been enthusiastic about deals with Toyota and Daimler who have made big investments in the company but will also be buyers of its “electric drive system” including the lap-top like batteries that power the Tesla autos.
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