After a better-than-expected pop on the first day of its IPO, Tesla’s stock (under the ticker symbol TSLA) started to slide a few days after. It is now hanging 7 percent below its initial pricing of $17, closing at $15.80 per share today.
Only a week on the market, Tesla’s stock has fluctuated greatly, trading at a high of $30.42 and dropping to a low of $14.98. While some hoped Tesla would provide the “Netscape moment” for clean tech IPOs, Tesla seems to have the same struggles other greentech IPOs have experienced. Just last month, commercial rooftop panel maker Solyndra canceled its IPO plans.
Greentech companies often face high production costs and initially low profits, a combination that makes some investors skittish. The industry also receives fewer government subsidies than traditional fuel industries like oil, which continues to receive billions in subsidies.
One wonders whether Tesla’s IPO roller coaster might worry Zipcar. The company filed for a $75 million IPO of its own in early June. Investors who bought at the IPO, as well as partner Toyota which bought $50 million worth of stock in a private placement at the same time, better have a lot of patience.