electric cars

Tesla Motors: Not so different after all

July 7, 2010: 11:06 AM ET

Tesla Motors' stock has become a handy object lesson in how cleantech IPOs cannot escape their fate.

By Heidi N. Moore, contributor

Tesla (TSLA) enjoyed an encouraging first day of trading when it went public last week. The stock turned in a whopping 40% increase to its $17 offering price, to close the day at $28.39. At one point, it even traded at a 70% premium to its offering price. For a minute there, Tesla looked like what famed venture capitalist John Doerr had asked for: a "Netscape moment" for cleantech IPOs.

Unfortunately, as our friends at CNN Money point out today, and as we suspected last week, the hype and dazzle weren't sustainable. Tesla's stock started trading below $17 yesterday, and today it opened at a watery $16.40. Tesla's one-week range says it all: The shares have traded at a high of $30.42 and a low of $15.56. More

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