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Tesla Motors Inc.'s Greatest Weakness

By Daniel Sparks and Blake Bos – Feb 12, 2014 at 8:59AM

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Will this weakness stand in the way of Tesla's audacious aspirations?

In the video below, Fool contributor Daniel Sparks and industrials bureau chief Blake Bos take a close look at Tesla (TSLA 0.08%) stock using a SWOT analysis. A SWOT analysis is a great way to analyze a company's strengths, weaknesses, opportunities, and threats. In this segment, Daniel and Blake look at Tesla's greatest weakness: production bottlenecks.

In a years time, Tesla went from producing hundreds of cars per year to thousands per year -- 22,450, in fact. While Tesla's progress on production so far can be seen as a strength, proving that the company can execute, it is also a weakness when the scale of Tesla's production is viewed in relation to its well capitalized U.S. peers. Even more, considering that Tesla's market capitalization already equals about one-third of Ford's, the market has already priced in nearly perfect execution on production.

Check out the video below to learn more about Tesla's greatest weakness.

Blake Bos has no position in any stocks mentioned. Daniel Sparks owns shares of Tesla Motors. The Motley Fool recommends Ford, General Motors, and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors. 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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TSLA
$194.86 (0.08%) $0.16

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