Bull’s Take: Why Smart Investors Are Snapping Up TSLA Stock Now $TSLA

Consumer preferences are tilting toward EVs
Tesla stock is primed for future growth as consumer preferences increasingly favor EVs over other types of vehicles. One factor driving consumer preferences is improved pricing. I have written before in various articles that lithium prices have fallen significantly compared to where they were in 2022.
The fall of lithium prices has been a result of relatively dampened demand in China coupled with oversupply that has built up in the market. Because lithium is a key input price in manufacturing an electric vehicle, as prices for this rare earth mineral decline, so will the average EV price. Nonetheless, as lithium batteries have become ubiquitous, the technology and energy density have also improved. This makes TSLA stock one of those companies to watch.
Moreover, Tesla has a loyal fan base and a strong brand image, which help it attract and retain customers. In 2023, Tesla’s quarterly earnings have come in above analysts’ estimates, and the price-cut strategy the automaker began to pursue in the beginning year has increased quarterly deliveries while also placing pressure on gross margins. All of that to say, demand for Tesla’s vehicles remains steady and can improve over time.