Electric car pulls interest on Wall Street
Shares of electric carmaker Tesla Motors opened on Wall Street nearly 12 per cent above their initial public offering price yesterday as investors bet on electric cars as the future of transportation.
The shares were still up 10 per cent in the afternoon despite weakness in the broad market.
Tesla, which at the IPO price of $17 had a market capitalisation of $1.6bn, is the first initial public offering by an American carmaker since Ford went to market in 1956.
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Hide AdThe IPO came amid increasing interest in electric cars but analysts believe the shares will be volatile in the near term.
The company, which is based in Palo Alto, California, is losing money and does not expect to move into profit for at least two years.