Atlis Motors IPO: StartEngine Investors Celebrate 137,000% Gains
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Chapter 1: A Historic IPO for Atlis Motors
StartEngine’s initial investors have just experienced a remarkable financial success.
Atlis Motors, a company specializing in electric vehicles, conducted its IPO today. What sets this IPO apart from the typical ones is its significant backing from retail investors. Atlis Motors initially raised funds on StartEngine at a mere $0.29 per share. Upon its IPO, Atlis Motors’ stock closed at $82.12, even reaching a staggering $200 per share in after-hours trading. It’s important to note that a 2-for-1 stock split followed their second funding round on StartEngine, adjusting the effective share price to $0.145.
This means that those who sold their shares at $200 each witnessed returns exceeding 137,000%. To put this into perspective, the entry investment for that round was $203, which has ballooned to an astounding $278,000. The first round attracted 1,881 investors, with an average investment of $568, aggregating to a total of $1,070,000. Consequently, each investor now averages a profit of $778,000, as the initial $1.07 million investment is now valued at over $1 billion.
While there have been various success stories in the realm of crowdfunding, many have not yielded such impressive results. For example, Knightscope saw its stock surge by 200-300% following its IPO, only to experience a significant decline thereafter. There are a few notable exits from platforms like SeedInvest and Wefunder, but they were either small-scale, limited to accredited investors, or generally underwhelming. This indicates that retail investors either had limited access or simply did not achieve substantial gains.
Atlis Motors appears to be the breakthrough many have anticipated. The company raised additional funds through both StartEngine and its own website, maximizing potential profits for retail investors. The last funding round before the IPO was priced at $27.50, meaning even those investors are witnessing gains approaching 1,000% as the stock approaches $200.
It will be fascinating to monitor the developments over time, but this significant victory is certainly a positive highlight for the industry.