Why Tesla's Strong Growth Is Likely to Continue, Despite High Interest Rates

It's easy to quickly conclude that 's (NASDAQ: TSLA) growth is likely to slow dramatically in a high interst rate environment. After all, vehicle affordability suffers in high-interest rate environments because consumers often finance their vehicle purchases. But investors betting Tesla's growth will take a hit may want to think twice.

There are three main reasons Tesla could continue growing rapidly even if interest rates remain high for a multiyear period.

The most obvious reason to be bullish on Tesla's near-term growth prospects is the launch of its long-awaited Cybertruck. The all-electric truck, with its polarizing design, has garnered more than two million reservations, according to estimates from a crowdsourced reservation tracker. This is an extraordinary number for a vehicle virtually no one has been inside or seen on the road. Even if this crowdsourced figure is off materially, we know interest for the Cybertruck is high because Tesla CEO Elon Musk said shortly after the truck was first unveiled that pre-orders for the vehicle broke 250,000 in less than a week. 

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Source Fool.com