First off, unless you were an insider, I doubt you would have gotten shares after the fact anywhere near $17. So you would have end up buying near $23.
Second, this company has yet to prove it can be profitable. Hell, buyers of their roadsters would be leery of getting their money back IF they go belly up. And the deposits are pretty sizeable closer to production. There had been some rumors perculating that Tesla was using customer’s deposits on cars to fund day to day expenses to keep it afloat, which is a big no no (again, can you say Tucker).
Third, it most likely won’t be profitable for some time. Unlike high flyer .dot.com, this it’s going to take a lot of capital just to get the first products out the door. It’s going to take a bunch of money to get a vehicle passed through all the federal regulations (The Roadster got an exemption, otherwise it wouldnt have passed through completely otherwise).
Forth, insiders have and are going to be selling like mad after the lockout window…Particularly, Mr. Musk…because he needs the money..The story goes he’s close to broke before this IPO, borrowing money from friends, and he’s going through a divorce right now, and funding Space X (which also isn’t profitable)….So this dude will be selling.
