Should Investors Buy the Dip on Tesla Stock?
Shares of the leading electric vehicle (EV) maker Tesla (NASDAQ: TSLA) have seesawed since eclipsing a $1 trillion market capitalization at the end of 2021. Though the stock has climbed 10% in the past six months, it remains 26% in the red since the beginning of this year, and now amounts to a market cap of $930 billion. And given the unstable economic landscape, which is overwhelmed by high inflation, rising interest rates, and the war in Ukraine, I wouldn't be surprised to see the EV stock continue to draw back in the coming trading sessions.
The big question is, should long-term investors accumulate shares of the EV king now? After all, Tesla dominates 26% of the global battery electric vehicle (BEV) market, an industry that is forecast to register a compound annual growth rate (CAGR) of 25.4% from 2021 through 2028, according to Fortune Business Insights. Since it's a clear leader in a secular growth market, investors should ignore short-term noise and focus on the long-term fundamentals of the company's business.
Let's look at where Tesla currently stands to help investors decide if it's a sound investment today.
Source Fool.com
