Tesla Motors Inc (TSLA): Should You Speculate?

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Given the capital intensive business of mining, its debt-to-equity ratio of 0.9 does not appear to be very high, but the nagging worry remains about the business itself – whether the demand of rare earth metals will pan out as expected.

Foolish bottom line

On a whole, only Molycorp Inc (NYSE:MCP)’s current market price looks inline with business fundamentals. This is not to say that Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY) have no room to rise further, but speculative interest seems to have taken over rationality in latter ones. Cautious investors would think twice before buying these stocks.

Jacob Wolinsky has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors . The Motley Fool owns shares of Tesla Motors .

The article Should You Go Long in These Speculative Stocks? originally appeared on Fool.com.

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