Tesla (TSLA) IPO A Success: Increased Share Offering & Priced Above Expected Range

All the hype around Tesla Motors (TSLA) appears to have investors clamoring for a piece as the company increased the share offering by 20% and priced at $17/share which is higher than the expected range of $14 – 16, raising nearly $50 million more than expected.  Elon Musk must be a very happy man this morning. 

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Now that the IPO is behind them and a smashing success, Tesla is expected to sell a $50 million stake in the company to Toyota Motors which will help Tesla tap into the company’s production volume expertise and manufacturing capabilities.  I still don’t like Tesla as an investment opportunity.. at least not this early on.  While it might provide some decent short term trading opportunities, which could very well come on the short side, I’d stay out of this one for the longer haul until visibility improves. 

Based on early momentum, expect shares of Tesla to trade even higher once it opens for trading on the Nasdaq this morning.  I may day trade it, but I’d want to see some firm intraday support and resistance areas set up in the first few hours.

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