According to a NPR report, Tesla Motors shares dropped a dramatic 15 percent on Monday. Yesterday was the first day company insiders and early investors were allowed to sell their shares after the company went public in June.
The stock’s decline was a surprising reversal for Tesla, which enjoyed a positive initial period as a public company. According to a report on TradingMarkets.com, in the six months since its IPO, Tesla’s stock had more than doubled in price amid rising expectations and high-profile deals.
I reported in June that Toyota purchased $50 million in Tesla stock when the two companies teamed up to develop electric cars that run solely on Li-ion batteries. Tesla also received high acclaim when it unveiled it’s new battery pack for its latest model, the Model S sedan.
After the sell-off, the company’s shares settled at $25.55, which is a 15 percent decline as investors traded 9.3 million shares.