Less than a week after its IPO, GM’s stock is holding steady at $33.60; 2% higher than the offering price of $33. The stock had climbed as high as $35.60.
The steady stock price comes in the face of a down broad market, due mainly to geopolitical issues. This has quieted the contention by many that the stock would rocket, and reflects that the offering price was accurately formulated.
The story is not the same however for Tesla Motors. After an offering price of $17, midday trading hovered around the $34.50 mark, a new high since the June 29 offering. Tesla stock had dipped to $14.98, but has been on a steady rise since Toyota announced a $50 million investment and a joint venture by which Toyota will produce electric RAV4s using Tesla batteries. An announced $30 million investment from Panasonic also helped fuel the fire.
– By: Stephen Calogera