New York/San Francisco: Electric carmaker Tesla Motors' initial public offering zoomed ahead on Tuesday with shares rallying more than 40 per cent as investors bet that electric cars would define the future of transportation.
Tesla's shining debut came despite weakness in the broad market and as other auto stocks were hit by concerns of a global slowdown.
Tesla was the top gainer on the Nasdaq on Tuesday, offering hope to other companies mulling initial public offerings but which may have shied away given recent volatility.
Tesla's closing share price of $23.89 boosted its market capitalisation to $2.22 billion, compared with $1.6 billion on Monday night.
It is the first initial public offering by an American automaker since Ford's debut in 1956.
The debut comes amid heightened interest in electric cars and as major automakers gear up to launch various types of battery-powered vehicles, including plug-in hybrids.
"They're competing against both internal combustion engines and alternative fuels like fuel cells, compressed natural gas and things like that," said Matt Therian, an analyst with Connecticut-based IPO research house Renaissance Capital.
"It's probably too early to say that electric vehicles are definitely going to be the next thing in cars, but if they are I think the potential is huge."
Analysts say that the cars may be sleek, but the shares will be volatile in the near term.
The Palo Alto, California-based company is losing money and does not expect to be profitable for at least two years.
"A lot of people were puzzled about why we were going public without profits," CEO Elon Musk, told reporters outside the Nasdaq building in Times Square.
"The reason we are not profitable today is because we are in the midst of expanding with the Model S (sedan)," Musk said.
The IPO is also the first for the eccentric and charismatic Musk, who is the inspiration for Robert Downey Jr's Tony Stark character in Iron Man and also has a cameo role in this summer's sequel.
