But analysts have questioned whether its momentum can be sustained.

Stocks in California-based Tesla bucked the market’s general downward trend on Tuesday to close the first day of trading at $23.89, up 26% on the $19 opening price and 40.5% on the $17 issue price. Mid week trading followed a similar pattern.

While Tesla, manufacturer of the zero-emission Tesla Roadster, is yet to generate a profit, enthusiasm for the Nasdaq listing was high.

“I do think [the Tesla IPO] is going to be one of the watershed events, hopefully, to invigorate sentiment that companies can be successful in coming to market amongst the very dismal performance of other almost-rans,” Neil Auerbach, managing partner for Hudson Clean Energy Partners in Teaneck, New Jersey, told attendees of the Renewable Energy Finance Forum (REFF) in New York this week.

Brian Kremer, California-based senior clean-tech analyst at investment bank firm Roth Capital Partners, told Environmental Finance the buzz surrounding Tesla’s launch was part of “the growing expectations for the broader electric vehicle sector”.

“Our take is that Tesla represents one of the few ways to invest in this nascent market, which has huge growth potential in our opinion,” he said. “We estimate that by mid-decade, more than 400,000 plug-in hybrids/EVs will be sold globally each year.

“Add to this, the visibility of the company with its Roadster and well known CEO and we believe you have the potential for the type of IPO we just saw.”

The car marker launched its IPO on Monday with 13.3 million shares at $17 each, up from its orginal target of $14-16 per share.

The total capital raising was valued at $226.1 million and, after taking into account underwriter fees and sales by existing shareholders, the IPO generated $188.8 million for Tesla.

The amount surpasses the $185 million Tesla was targeting in early June, and nearly double its original $100 million objective announced in January.

The enthusiasm surrounding the listing has been viewed by some as a vote of confidence in the electric car sector and the wider clean-tech industry. But, given Tesla’s lack of profits to date, the relative novelty of the technology and the financial troubles of its founder Elon Musk, analysts have also expressed doubts over its ability to maintain momentum.

Kremer at Roth said the current economic climate created a challenge for any entrant to the automotive market but even more so for a company “that does not have very, very deep pockets”.

High product costs would further limit Tesla’s market potential, he added.

Tesla’s yet-to-be launched Model S sedan is expected to cost $57,000, excluding any government rebates. The Tesla Roadster currently retails at $109,000.

The carmaker has said it expects to remain loss-making in the near term as it commits funds for the development of its Tesla Model S vehicle.

Nancy Floyd, founding and managing director of Nth Power in San Francisco, said investors see the clean-tech sector as a venture investment opportunity, but one that does not yet have a strong track record of realised returns.

“Once we have a couple of more Teslas, we’ll see investors embrace this sector,” she told REFF attendees.

Managing director of IHS Automotive Consulting Phil Gott said while Tesla occupied an unusual position in the market, as time went on, the company may have to work hard to maintain its uniqueness, lest its product become “just another car”.

Kevin Genieser, managing director of Morgan Stanley’s clean energy and renewables effort in New York, which was involved in the Tesla IPO said: “I think one of the questions we’ll all be asking ourselves is, is [Tesla] a one-off transaction or is this starting a new wave of IPOs?”

He said the IPO market has been “pretty painful” for companies such as Jinko Solar and solar equipment manufacturer Solyndra, withdrawaing IPOs amid questions about profitabilty and difficulties demonstrating a market leading position. However, he said “higher quality names should be able to access the market.”

Charlotte Dudley and Gloria Gonzalez