Shares in the electric carmaker, Tesla have fallen below its offer price, just a week after beginning trading in New York, the BBC reports.
The Silicon Valley firm known for its electric supercar, the Roadster, saw shares in its company drop to $15.83 on Tuesday (July 6, 2010). It’s the first time the company has seen its shares drop below its asking price of $17 since it debuted on the stock market on June 29.
The fall comes after a strong start for the indebted carmaker, when its shares traded at $23.89 – a whopping 40.5 per cent above the offer price- on its first day of trading.
Analysts are reported to credit the fall in the share price to the carmaker’s niche product offering and a wider nervousness among investors due to the unsettled economic climate.
Tesla is the first US car company to float since Ford went public in 1956.
