3 Reasons to Buy Tesla Stock Hand Over Fist

With its shares up a whopping 103% year to date, (NASDAQ: TSLA) clearly has a loyal following even as it faces near-term challenges related to a slowdown in electric vehicle (EV) demand and weakening margins. It seems investors are convinced that the company has the tools to navigate the currently choppy waters and emerge stronger than ever. Let's dig deeper and look at three ways Tesla is successfully pushing forward.

2023 has been a challenging year for the EV industry as headwinds like competition and slowing demand take their toll. The problem was evident in Tesla's third-quarter earnings report, where its total automotive revenue grew by just 5% year over year to $19.6 billion -- a sharp deceleration from the 55% growth rate it enjoyed this time last year.

According to CEO Elon Musk, the weak results have a lot to do with macroeconomic challenges like high interest rates, which make it harder for consumers to buy cars with loans. But competition is another problem as more companies pivot to the new opportunity. In response, Tesla has embarked on a cost-cutting strategy that has eaten away at margins.

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Source Fool.com