Tesla Motors shares surge in second-best US IPO of the year

ELECTRIC car maker Tesla Motors saw its shares surge 41 per cent yesterday in the successful first day of its initial public offering (IPO).

Even as other stocks plunged, Tesla sold 13.3m shares at a price above its expected range of $14 (£9.30) to $16.

Its shares opened at $19 and closed at $23.89 on the Nasdaq, up $6.89 from its IPO price of $17.

The 41 per cent gain was the second-best debut from an IPO in the US this year, behind the nearly 44 per cent lift that Financial Engines saw in March.

Tesla is the first IPO by an American carmaker since Ford’s debut in 1956 and its offer comes amid heightened interest in electric cars as major carmakers gear up to introduce various types of battery-powered vehicles, including plug-in hybrids.