Why Tesla Will Stall in 2013
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 | $3.9 billion |
Industry | Automobile manufacturers |
Trailing-12-Month Revenue | $146.3 million |
Management | Co-Founder/Chairman/CEO Elon Musk |
Return on Capital (average, past 3 years) | (41.5%) |
Cash/Debt | $85.7 million / $474.5 million |
Competitors | General Motors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 66% of the 29 members who have rated Tesla believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star TopAustrianFool, succinctly summed up the Tesla bear case for our community:
[Electric vehicle tech] has serious technical problems. With batteries costing 1/3 of the total cost of the car and the technology at an impasse I don't see [Tesla] going too far. The company doesn't have a record at all, and it is surviving on govt money from a govt that is going bankrupt. It's a matter of time before this pipe dream comes crashing taking unsuspecting investors with it.
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.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Tesla Will Stall in 2013 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 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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