Tesla just hit the public markets at $18.60.
That’s a nice pop from Tesla’s initial pricing of $17. Apparently some investors are interested in Tesla, despite all the scary signs about the business.
Remember, CEO Elon Musk was flat broke, and is selling 1 million shares to get some money. Also, Tesla only sells a $100,000+ electric car. It has plans to sell a more affordable car in the next two years, but…that’s two years away.
If you’re buying Tesla stock you are making a bet on Elon Musk’s ability to deliver an affordable electric car in 2012.
Tesla’s IPO is good timing for Elon since he ran out of money, but it’s bad timing from a market perspective. Stocks are tanking today.
See Also: REVEALED: Tesla’s IPO Roadshow