Why Tesla Is Poised to Pull Back

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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 operator Tesla Motors has received a distressing two-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

Headquarters

Palo Alto, Calif. (2003)

Market Cap

$6.3 billion

Industry

Automobile manufacturers

Trailing-12-Month Revenue

$413.3 million

Management

Co-Founder/Chairman/CEO Elon Musk

CFO Deepak Ahuja

Return on Capital (average, past 3 years)

(45.9%)

Cash/Debt

$201.9 million / $466.7 million

Competitors

General Motors

Toyota Motor


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

On CAPS, 34% of the 1,304 members who have rated Tesla believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, TMFrank, touched on Tesla's seemingly unsustainable valuation:

Just plain expensive. This company might have some big growth ahead -- but not this much. There are still enormous questions about the feasibility of the electric vehicles. Don't get me wrong, it could work out, but there's still a high probability of failure that the price doesn't reflect.

Near-faultless execution has led Tesla Motors to the brink of success, but the road ahead remains a hard one. Despite progress, a looming question remains: Will Tesla be able to fend off its big-name competitors? The Motley Fool answers this question and more in our most in-depth Tesla research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.

The article Why Tesla Is Poised to Pull Back originally appeared on Fool.com.

Motley Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends General Motors and Tesla Motors. The Motley Fool owns shares of 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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