The relationship between Tesla’s business and stock prices continues to expand.

Since the beginning of 2022, the macroeconomic and geopolitical background has hit the stock market hard. From year to year, the S&P 500 It is down 21%, and many investors believe that the economic downturn is increasing.

The sale has created many amazing buying opportunities for discerning investors. Despite the success of their work and financial success, many companies continue to shed significant market value.

That’s right. Tesla (TSLA 1.24%) Today. The electric vehicle (EV) King’s business is booming, but stock prices have risen 44% since the new year. Corrections are inevitable, so we can use them instead of fearing them. Here’s why Tesla is a huge stock owned today.

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The EV leader is firing on all cylinders.

Don’t be fooled – Tesla is not struggling financially. In the last quarter, EV’s gross domestic product increased by 81 percent year-on-year to $ 18.8 billion, and adjusted earnings per share rose 246% to $ 3.22 billion.

As the business progressed rapidly, the company’s business grew rapidly. In Q1, the GAAP gross margin and operating margins increased by 779 and 1,349 base points year-on-year to 29.1% and 19.2%, respectively.

With high inflation and ongoing supply chain bottlenecks, Wall Street analysts are still pushing the company into a strong year. In fiscal year 2022, analysts expect Tesla’s gross domestic product to grow from 58 percent to $ 85.3 billion, and adjusted earnings to jump 77 percent to $ 11.99 per share. Those impressive growth rates have been reduced by 43 percent for a company, but not just Tesla.

The company has $ 17.5 billion in cash and cash equivalents and $ 100 million in debt – excluding vehicle and energy finance. Also, EVJugernut generated $ 2.2 billion in cash flow (FCF) in Q1, an impressive 660% year-on-year increase.

Once seen as a speculative investment, Tesla has grown into a highly profitable business with strong balances and strong cash flows. Going forward, EVI’s leader is well-prepared to expand his work and cope with the potential economic storm.

Great time to buy

The EV Commander seems to be a very good investment right now. The relationship between performance and evaluation has grown over time, which has long been a clear buying signal for investors.

Given the current economic situation, I am not surprised to see this stock fall in the coming trading sessions. That said, it’s not a good idea to test the market on time – I still think it’s a good opportunity to buy a share of EV. For long-term investors, it is time to back up the truck and buy Tesla stock.