1-Star Stocks Poised to Plunge: Tesla Motors?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electric vehicle maker Tesla Motors (NAS: TSLA) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Tesla's business and see what CAPS investors are saying about the stock right now.

Teslafacts

Headquarters (founded)Palo Alto, Calif. (2003)
Market Cap$3.6 billion
IndustryAutomobile manufacturers
Trailing-12-Month Revenue$204.2 million
ManagementCo-Founder/Chairman/CEO Elon Musk
CFO Deepak Ahuja
Trailing-12-Month Return on Capital(40.1%)
Cash/Debt$280.3 million / $280.2 million
CompetitorsGeneral Motors
Pininfarina
Toyota Motor

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 50% of the 841 members who have rated Tesla believe the stock will underperform the S&P 500 going forward.

Earlier this year, one of those Fools, All-Star BuffettJunior1, succinctly summed up the bear case for our community:

Extremely overvalued stock. The company's [capital expenditures] is growing faster than its revenues, and free cash flow has never been positive. The auto manufacturing industry in general has never been very profitable, and most likely never will. I wouldn't touch this stock with a ten foot pole!

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Tesla and GM. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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