SAN FRANCISCO, June 30 (Reuters) -Motors Corp shares jumped more than 7 percent on Wednesday, a day after the electric carmaker made a soaring debut on the public market.
shares were up 7.24 percent at $25.62, in afternoon trading after having soared to an early high of $30.42, as investors continue to bet that electric cars would be a bigger part of the future transportation scene.
Tesla's scorching run on the Nasdaq happened despite weakness in the broad market and as major automakers gear up to launch various types of battery-powered vehicles, including plug-in hybrids.
"I personally see this as an initial IPO run up," said Oliver Hazimeh, Detroit-based director of electric transportation consulting at PRTM. "This will probably be calibrated in the next few weeks."
Tesla's real work starts now, including working simultaneously on both the next car, the lower-cost Model S, and the products beyond that, he said.
"They need to drive scale quickly," he added.
Tesla's IPO is often compared to that of lithium-ion battery supplier A123 Systems Inc that began trading last September.
The battery maker, which is also betting on the electric vehicle market, saw its shares jump 50 percent on the first day to close at $20.29. The stock has since plummeted and currently trades at around $9.
Like A123, Tesla is still losing money. The company has burned through $230 million of cash while recording revenue of just $148 million.
It expects losses to deepen as it devotes the next year to preparing to manufacture Model S, a luxury electric sedan it plans to launch in 2012 and to sell starting from $57,400. (Reporting by Poornima Gupta, editing by Maureen Bavdek)