Tesla Motors Inc. (TSLA): Today's Featured Automotive Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Tesla Motors ( TSLA) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Tesla Motors fell $3.99 (-6.7%) to $55.51 on heavy volume. Throughout the day, 9,969,249 shares of Tesla Motors exchanged hands as compared to its average daily volume of 2,596,300 shares. The stock ranged in price between $55.12-$62.37 after having opened the day at $62.00 as compared to the previous trading day's close of $59.50. Other companies within the Automotive industry that declined today were: SORL Auto Parts ( SORL), down 2.1% and Motorcar Parts of America ( MPAA), down 1.6%.
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Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. Tesla Motors has a market cap of $6.3 billion and is part of the consumer goods sector. Shares are up 75.7% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Tesla Motors a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Tesla Motors as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins.

On the positive front, Gentherm ( THRM), down 7.7%, Harley-Davidson ( HOG), down 4.3%, Strattec Security Corporation ( STRT), down 3.5% and American Axle & Mfg Holdings ( AXL), down 3.4% , were all gainers within the automotive industry with Polaris Industries ( PII) being today's featured automotive industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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