GM Stock in Neutral, Tesla Still Soaring

GM Stock in Neutral, Tesla Still Soaring

Less than a week after General Motors Co.'s initial public offering last Thursday, the price of GM stock has retreated into a narrow channel with little movement after an initial flurry raised the stock to a high of $35.60 from its offering price of $33.

At mid-afternoon today and with the broad market down considerably over geopolitical concerns, at $33.60 GM stock was trading at just 2 percent over its offering price. The lowest GM has closed since returning to public ownership was $33.41 last Friday, the day after an IPO. Judging from the reported exuberance to buy GM stock prior to the offering and some analysts' quiet contention the stock price could rocket, the stock's price performance so far has not been extraordinary and reinforces the notion the initial offering price was accurately formulated.

Another high-profile automotive IPO, meanwhile, has gone ballistic after early skepticism.

The price of California-based Tesla Motors today doubled its IPO price of $17 and at midday was trading around the $34.50 mark. The day also marked a high for Tesla since going public on June 29.

The price of Tesla stock had been as low as $14.98, but has been in a steep climb since Toyota Motor Corp.'s announcement of a $50-million investment in Tesla as well as a collaboration with the maker of the all-electric Tesla Roadster to jointly develop an electric variant of Toyota's RAV4 crossover using Tesla-engineered lithium-ion batteries.

Adding fuel to Tesla's ascent was a subsequent announcement from Panasonic Corp. early this month that Panasonic also was investing $30 million in Tesla, which later reported improved financial performance in the third quarter, including its highest-ever backlog of orders for the 2-seat Roadster, the company's only product until it builds a 4-door sedan, the Model S, for 2012.

Bill Visnic:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter