Tesla Motors (TSLA) IPO Breaks Syndicate Price

After surging higher on its debut, the IPO for Tesla Motors, Inc. (Nasdaq: TSLA) broke its $17 syndicate price today for the first time.

Shares are currently trading at $16.26, down 15 percent on the session.

After rallying 41% to $23.85 on its its first day of trading and jumping to an intra-day high of $30.42 on the second day, shares have been in free-fall since. Out of five trading sessions, including today, the stock has only closed higher once - the first day.

The IPO, first consider a success, will now be looked at like a failure.

The maker of the sexy electric cars, which will see losses into the foreseeable future, is betting its future on the customer adoption of electric as a preferred fuel method.

Tesla's hopes its Model S will move it into the mainstream. The vehicle, slated to begin volume production in 2012, is priced at $49,900, versus its current Tesla Roadster which is priced at $100,000. The company has targeted annual production of up to approximately 20,000 cars per year of the Model S.

Longer-term plans includes using the Model S's adaptable platform to make additional electric vehicles.

Market Moving News and Intelligence - Free Sign-Up
http://www.streetinsider.com/premium_content.php