1-Star Stocks Poised to Plunge: Tesla Motors?

Before you go, we thought you'd like these...
Before you go close icon

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$3.8 billion
IndustryAutomobile manufacturers
Trailing-12-Month Revenue$185.4 million
ManagementCo-Founder/Chairman/CEO Elon Musk
CFO Deepak Ahuja
Trailing-12-Month Return on Capital(46.3%)
Cash/Debt$243.6 million / $365.9 million
CompetitorsGeneral Motors
Pininfarina
Toyota Motor

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

On CAPS, 44% of the 921 members who have rated Tesla believe the stock will underperform the S&P 500 going forward.

A few months ago, one of those Fools, Straightener, succinctly summed up the Tesla bear case for our community:

Currently this stock is priced as though they are going to execute their business plan flawlessly. As with any auto start-up, there are bound to be bumps along the way, and electric cars are not really taking off as previously expected. They have always lost money, and will probably continue to do so for the foreseeable future.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 1-Star Stocks Poised to Plunge: Tesla Motors? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of General Motors. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners