Stocks hit the ground running in 2023, with the Nasdaq Composite up by 13.6% year to date as outsized inflation levels off and resilient economic data suggest the economy could avoid a severe recession.

While it is foolish to predict the market's specific future, it's probably safe to deduce that Tesla's (NASDAQ: TSLA) stock is benefiting from these tailwinds. And I'm pretty confident asserting that the automaker's company-specific advantages will help it outperform the market over the long term. Here are three reasons why.

Competition is heating up in the electric vehicle (EV) industry, leading some analysts to expect near-term challenges among EV makers to match consumer demand. Tesla responded to recent pressures by announcing price cuts on some of its models. According to Reuters, the automaker slashed the sticker prices on some models by around 20%. This strategy is most evident in the Chinese market, where its cars are roughly 40% cheaper than in the U.S.

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Source Fool.com