Tesla went public ten years ago today, with a share price of $ 17 above the expected range of $ 14 to $ 16.
The company raised around $ 226 million in its IPO, with stocks up 41% that day to close at $ 23.89. Today, the electric vehicle maker’s shares closed at $ 1,009.35, which means that Tesla’s shares have risen 4.125% since the close of its first day as a public company.
That performance of the title puts Tesla in a rarefied air, together with Netflix, which was the best performing title of the S&P 500 during the 201
The stock had a lot of ups and downs along the way, including a 30% drop in the month following August 7, 2018, when a CEO Elon Musk tweeted that he had “guaranteed funding” to make the company private. The SEC accused Musk of deceiving the public, allegedly knowing that the financing was contingent, and both Musk individually and Tesla as a company paid $ 20 million in fines to settle the lawsuit.
But shares have been on the rise since the beginning of 2020, when Tesla started up its factory in Shanghai and started producing Model Y at its US auto plant in Fremont, California. Investors also joined the company’s promises to deliver a semi electric truck called Semi, an electric pickup truck known as Cybertruck and improvements in autonomous driving technology. Despite the Covid-19 epidemic, which stopped production at its California factory for several weeks, shares increased by over 140% this year.
Since becoming public, Tesla has never achieved a full year of profitability. The company has recorded seven quarters with net income greater than zero since its IPO – the first was the first quarter of 2013. It has now recorded three consecutive GAAP profit quarters, with some accounting adjustments along the way, and is expected to report the second quarter earnings next month.
Tesla is now requesting inclusion in the S&P 500, which also requires a minimum of four consecutive quarters of profitability.