Why Tesla Is Poised to Keep Pulling 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 maker Tesla Motors 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

$13.5 billion


Automobile manufacturers

Trailing-12-Month Revenue

$944.9 million


Co-Founder/Chairman/CEO Elon Musk

CFO Deepak Ahuja

Return on Capital (average, past 3 years)



$214.4 million / $455.5 million


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

On CAPS, 43% of the 472 All-Star members who have rated Tesla believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, patatepoil6, wrote that the Tesla bear case all boiled down to price:

Overbought. ... This company is impressive, and might change the world. Musk has done an incredible job and no doubt he is a visionary. But people tend to exaggerate the impact of technology (here, electric cars) in the short term. The real large-scale profitability for electric cars might be 10-20 years away, and by this time, there should be a lot of competition. That said, I hope Tesla will succeed, I would just not invest in it today at this price.

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

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.

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