Tesla: Buy The Dip, Focus On Deliveries First And Margins Later

Tesla, Inc. shares have dropped ~30% YTD, erasing last year's gains and entering a bear market. I maintain a Buy rating on TSLA stock, viewing the recent ~20% post-Q2 correction as a potential buying opportunity. Short-term margin and cash flow concerns are driving the current selloff, but I see these as less critical and more temporary than sentiment suggests. Tesla's deliveries and FSD subscriptions have hit record highs, setting the stage for future margin expansion. An expansion in robotaxi routes should also begin to drive additional services monetization and help to sway the TSLA stock narrative.

After a brief halo from the SpaceX IPO, investor sentiment has suddenly shifted against Musk Inc., and carmaker Tesla, Inc. (TSLA), which is one of the world's most actively