Tesla Motors shares closed a whopping 40.53% higher than their starting price of $17 a share in their first day of trade.
Trading in Tesla’s shares on New York’s Nasdaq opened at $19 on Tuesday, 12% above the $17 offer price, before closing up 40.50 per cent at $23.89.
Tesla on Monday boosted the share offering by 20% to 13.3 million shares due to strong demand.
Most analysts said the electric car company’s strong debut was to be expected, though many also cautioned that Tesla has a long way to go before becoming profitable and stable. The company must first successfully produce and market its $57,000 Model S electric sedan.
Tesla is the first carmaker in more than 50 years to go public. The last was Ford Motor Co. in 1956.
