Why Tesla Is Poised to Pull Back

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 (NASDAQ: TSLA  ) 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 facts

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

Pininfarina

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.


Read/Post Comments (4) | Recommend This Article (4)

Comments from our Foolish Readers

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  • Report this Comment On May 06, 2013, at 12:56 PM, speechisntfree wrote:

    sounds like those 180,000 "fools" who gave two stars are also part of the shade under 50% short Tesla community..... and yes..... pun intended.....

    look at the bright side though..... those people are going to save on their water bill since Tesla is going to be giving them a bath for quite a while.....

    too bad for them..... and I love it when those who short stocks take it up the (I'll let you fill in the blank).

  • Report this Comment On May 06, 2013, at 12:56 PM, SamuelKirz wrote:

    Really? You pull a comment off of another post and repost it as another article?

    I suspect that Brian forgot to disclose that he is short tesla.

  • Report this Comment On May 06, 2013, at 3:00 PM, LoveMyTesla wrote:

    Pininfarina a competitor of Tesla??? Really? Fisker would have been a better comparison since it's mostly-made in America than the Italian-made Pininfarina. Pininfarina isn't too far behind Fisker as far as headed towards bankruptcy either....

    And reliability on an Italian-made car??? Come on.

  • Report this Comment On May 06, 2013, at 3:12 PM, ifool100 wrote:

    "On CAPS, 34% of the 1,304 members who have rated Tesla believe the stock will underperform the S&P 500 going forward." So 66% of CAPS do not believe this?

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