The Disconnect Between Tesla's Business and Stock Price Continues to Grow Wider
The macroeconomic and geopolitical backdrop has weighed down the stock market since the start of 2022. Whether it's surging inflation, the Federal Reserve's interest rate hikes, or negative side effects from Russia's invasion of Ukraine, stocks have been absolutely pounded of late. Year to date, the S&P 500 has tumbled 21%, and many investors believe that a recession is becoming increasingly likely.
The sell-off has created many wonderful buying opportunities for prudent investors, however. Many companies continue to shed their market value significantly despite experiencing consistent operational and financial success.
That's precisely the case for Tesla (NASDAQ: TSLA) today. The electrical vehicle (EV) king's business is operating at a high level, but its stock price has contracted 44% since the new year. Corrections are unavoidable, so we might as well exploit them rather than fear them. Here's why Tesla is a great stock to own today.
Source Fool.com
