4/24/2014

Why Tesla Is Poised to Keep Pulling Back

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 (NASDAQ: TSLA  ) 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

$13.5 billion

Industry

Automobile manufacturers

Trailing-12-Month Revenue

$944.9 million

Management

Co-Founder/Chairman/CEO Elon Musk

CFO Deepak Ahuja

Return on Capital (average, past 3 years)

(47%)

Cash/Debt

$214.4 million / $455.5 million

Competitors

General Motors

Pininfarina

Toyota Motor

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 43% of the 472 All-Star members who have rated Tesla believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, patatepoil6, wrote that the Tesla bear case all boiled down to price:

Overbought. ... This company is impressive, and might change the world. Musk has done an incredible job and no doubt he is a visionary. But people tend to exaggerate the impact of technology (here, electric cars) in the short term. The real large-scale profitability for electric cars might be 10-20 years away, and by this time, there should be a lot of competition. That said, I hope Tesla will succeed, I would just not invest in it today at this price.

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