By Silicon Valley / San Jose Business Journal

Tesla Motors Inc. stock fell below its initial offering price of $17 on Tuesday, closing at $16.11 a week after its debut.

The Palo Alto electric car company dropped about 16 percent on Tuesday and are down about 47 percent from their high of $30.42 during trading last Wednesday.

Tesla has not had a profitable quarter since it was founded in 2003, but it was able to raise $226.1 million in its IPO last week.

The company has said it doesn't expect to become profitable until after it begins selling its second car, the Model S sedan, in volume. So far it has sold more than 1,000 of its initial vehicle, the $109,000 Roadster.

The company plans to assemble its sedan at the former New United Motor Manufacturing Inc. facility in Fremont that was abandoned by General Motors and Toyota Motor Corp. in the past year.

Toyota and Tesla have agreed to partner on new vehicles to be built in Fremont as part of a deal in which the Japanese company is investing $50 million in the electric car company.

Tesla has lost $290.2 million since it was founded in 2003.

For more of the Business Journal's in-depth coverage of Tesla, click here.

Copyright 2010 American City Business Journals
Copyright 2010