Is This Automaker Throwing Away Your Money?

Updated

This video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

Tesla is simultaneously one of the most loved and most hated automakers out there right now. With so many people hoping for a big success, and an equal number betting on a huge failure, even the smallest hiccup can send shares spiraling. That's why Tesla's dangerous game of using customer deposits to fund existing operations heightens the importance of an on-time release for its Model S. Many have patiently waited for this vehicle's release, and with good reason. The success of this vehicle will define Tesla's future as a viable automaker.

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At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford.Motley Fool newsletter services recommendFord, General Motors, and Tesla Motors. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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