1-Star Stocks Poised to Plunge: Tesla Motors?
Jul 17th 2012 9:41AM
Updated Jul 17th 2012 9:52AM
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 (NAS: TSLA) has received the dreaded one-star ranking.
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||$3.8 billion|
|Trailing-12-Month Revenue||$185.4 million|
|Management||Co-Founder/Chairman/CEO Elon Musk
CFO Deepak Ahuja
|Trailing-12-Month Return on Capital||(46.3%)|
|Cash/Debt||$243.6 million / $365.9 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 44% of the 921 members who have rated Tesla believe the stock will underperform the S&P 500 going forward.
Currently this stock is priced as though they are going to execute their business plan flawlessly. As with any auto start-up, there are bound to be bumps along the way, and electric cars are not really taking off as previously expected. They have always lost money, and will probably continue to do so for the foreseeable future.
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The article 1-Star Stocks Poised to Plunge: Tesla Motors? originally appeared on Fool.com.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of General 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 Fool's disclosure policy always gets a perfect score.
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