1-Star Stocks Poised to Plunge: Tesla Motors?
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.
|Headquarters (founded)||Palo Alto, Calif. (2003)|
|Market Cap||$3.6 billion|
|Trailing-12-Month Revenue||$204.2 million|
|Management||Co-Founder/Chairman/CEO Elon Musk|
CFO Deepak Ahuja
|Trailing-12-Month Return on Capital||(40.1%)|
|Cash/Debt||$280.3 million / $280.2 million|
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.
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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