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 and see what CAPS investors are saying about the stock right now.

Tesla facts

Headquarters (founded)

Palo Alto, Calif. (2003)

Market Cap

$3.0 billion

Industry

Automobile manufacturers

Trailing-12-Month Revenue

$153.9 million

Management

Co-Founder/Chairman/CEO Elon Musk

CFO Deepak Ahuja

Trailing-12-Month Return on Capital

(43.2%)

Cash/Debt

$210.6 million / $439.0 million

Competitors

General Motors (NYS: GM)

Pininfarina

Toyota Motor (NYS: TM)


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

On CAPS, 42% of the 957 members who have rated Tesla believe the stock will underperform the S&P 500 going forward.

Just last month, one of those bears, fellow Fool John Divine (TMFDivine), succinctly summed up the underperform case for our community:

Let's be honest: this market is going to take a WHILE to develop and mature. The days of all-electric cars aren't really even visible on the shorter-term horizon. In the meantime, Tesla is boldly forging ahead. Bold. But unfortunately, the old adage "pioneers get slaughtered, settlers prosper," describes this business pretty accurately. With an entire stock market universe to pick from, why choose a risky company in an uncertain industry that's never made a profit?

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

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Tesla Motors. Motley Fool newsletter services recommend General Motors Company and Tesla 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 Motley Fool has a disclosure policy.

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