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


Automobile manufacturers

Trailing-12-Month Revenue

$146.3 million


Co-Founder/Chairman/CEO Elon Musk
CFO Deepak Ahuja

Return on Capital (average, past 3 years)



$85.7 million / $474.5 million


General Motors
Toyota Motor

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Steve Myers

Toyota in not a competitor to Tesla, they are a CUSTOMER of Tesla.
So is Damlier Benz.

Get your facts straight before you try to bash the best idea "Made In America" for decades...

December 27 2012 at 6:13 PM Report abuse rate up rate down Reply

Competitors - General Motors, Pininfarina & Toyota Motor?

Anybody that thinks the above companies are Tesla's competitors is clueless.

December 26 2012 at 8:53 PM Report abuse rate up rate down Reply

As it has been for the past 100 years or so , the Achilles heel of the RCBEV has been the battery. As good as Li (and all the associated LI technology) batteries are, thay just ain't good enough for an EV. Eventually, the Fuel Cell will out-do the RCB and become the power supply for EVs. Tesla, and all the other RCBEVs are just battery operated toys for the 1%ers to play with and have a new status symbol. The old line ICE status symbols are worn out and the "evil" rich need a new one, which Tesla seems to fill. The main auto mfgs. will be putting their Fuel Cell powered 4 wheel platforms on the market soon, and it will be interesting to watch the race between RCBEVs and FCEvs. Both technologies have their plus and minus points and they can be argued all week long. Me, I'm betting on the Fuel Cell. And that is a personal opinion, like it or not. So-- may the best technology win (or maybe even both). But the EV wins either way!

December 26 2012 at 8:04 PM Report abuse rate up rate down Reply