1 Reason Tesla's High Stock Price May Actually Make Sense

Shares of (NASDAQ: TSLA) took a huge hit on Thursday, following the electric-car maker's second-quarter earnings report. Investors may be spooked by the company's narrowing profit margin and management's scant details on expected production volumes of the company's long-awaited Cybertruck, which Tesla has said will launch this year.

Given the growth stock's approximate 10% pullback on Thursday, shareholders may wonder whether the decline is a sign of worse things to come or if Wall Street is overlooking the stock's long-term potential. While both the bull and bear cases for the stock are convincing these days, the quarterly report importantly draws attention to one thing that helps strengthen the bull case: Tesla is getting an extraordinary number of vehicles on the road, despite an incredibly tough macroeconomic environment for auto sales.

Investors will always find a way to criticize Tesla (or really any company they want to look for flaws in). But there's one area it has arguably exceeded virtually every critic's expectations in recent years: sales growth.

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Source Fool.com