Tesla’s share price has taken a tumble amid inflationary pressures, causing the company to look to downsize its workforce. However, these troubles are transitory, and its stock split significantly adds to its attractiveness.
Tesla (TSLA) is the world’s biggest automaker by market cap, but where does it stand today? Tesla’s shares shed around 9% on Friday after Musk shared his concerns regarding the economic meltdown with employees. TSLA stock took another hit on Monday and dropped by 4.8%. These shocks, though, will have little impact on Tesla’s long-term growth story.
Growth stocks such as TSLA continue to struggle due to the continual increase in inflation rates. High inflation has resulted in the highest interest rates in years, leading to a healthy increase in the cost of car loans.
The Oracle Of Omaha, Warren Buffet, has repeatedly mentioned that “interest rates act as a gravity to asset prices,” which happens to be the cause of the TSLA’s suffering.
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