Speculators say this is usually the case when new shares are on offer; the price takes a hike initially and thens drops below the initial public offer price - in this instance, $17 - but then settles again above the IPO price. This doesn't appear to be the case though. Scott Sweet, senior managing partner of IPO research firm, IPO Boutique, said in a recent report, "The euphoria has worn off. In this market environment, people are not buying $109,000 cars."
Tesla has failed to make a profit since opening up business in 2003, and has only sold around 1000 of its Roadster models. Elon Musk, inventor of PayPal, was anticipated by some investors to be the creator of the next 'Google' with the marketing of his electric sports cars.
The company did made history last week by holding the second highest price increase for an IPO this year, when share prices shot up to $23.89. We hope there's still plenty of prospect left in the company and its shareholders though as we can't wait for the release of the upcoming Model S.