Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electric vehicle maker Tesla Motors
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||$2.4 billion|
|Trailing-12-Month Revenue||$99.0 million|
Chairman/CEO Elon Musk
CFO Deepak Ahuja
|Trailing-12-Month Operating and Net Income Margin||(119.3%) and (128.4%)|
|Cash/Debt||$96.6 million / $57.4 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 61% of the 557 members who have rated Tesla believe the stock will underperform the S&P 500 going forward. These bears include fellow Fool Rich Smith (TMFDitty), who is ranked in the top 1% of our community, and A6EIntruder.
Late last year, Rich kindly warned Fools about getting burned: "$100M cash, burning same at the rate of $150M a year ... and about to go even more cashflow-negative when it stops selling the only product it has, to begin getting its next product ready. Share dilution, anyone?"
Many Fools remain concerned with Tesla's whopping cash burn, questionable competitive position, and seemingly unsustainable valuation. Currently, Tesla trades at a massive price-to-sales (25.8) premium to U.S. auto giants GM (0.4) and Ford (0.5), as well as foreign players Toyota (0.6), Honda
CAPS member A6EIntruder elaborates on the bear case:
Tesla makes a niche product that gets tongues wagging and eyeballs popping. It will continue to garner press, reviews about how its product lineup heralds the future, and lots of dishy coverage on CNBC and spreads in magazines liked Wired. I am not saying it will fail. The George Clooneys of the world will always be able to afford a very expensive statement of style and eco-values. On the other hand, the green car revolution cannot ride on the spaceframe of a two-seater that costs more than $80k. ... The Japanese Import Revolution was borne on fuel-efficient and practical cars like the Toyota Tercel and the Honda CVCC. They didn't cost a mint and lasted. Tesla doesn't fit this bill in any way, shape, or form.
What do you think about Tesla, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. GM is a Motley Fool Inside Value pick, and Ford is a selection of Stock Advisor. Try any of our Foolish newsletter services free for 30 days.
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