Tesla Stock Recoils From Post-IPO Price Surge

What goes up must come down -- it's cliche that seems to be especially true in the dreary stock market of 2010. But even so, the rise and fall of electric car maker Tesla (TSLA) in the wake of its high-profile IPO seems to have been especially accelerated.

Tesla debuted on the public market last week, raising $226 million in an initial public offering priced at $17 a share. That $17 price had been lifted at the last minute from the original range of $14 to $16 a share, thanks to heavy demand among institutional investors for shares in the high-end electric car manufacturer.

Once Tesla shares hit the markets on June 29, they kept rising, surging 40% to $23.89 in a matter of hours. By midday Thursday, Tesla had reached $30.42 -- 79% above its offering price. Stories appeared in the media calling the stock a "game changer" and noting its ability to "electrify the IPO market." (more)