• Tesla (TSLA) has faced plenty of bearish pressure this week.
• TSLA stock dropped more than 16% over the past five days and is now down 46% in 2022.
• Investors should look to the long term and take advantage of the latest drop in TSLA share prices.

Telsa (NASDAQ:TSLA) investors are accustomed to the company being in headlines. However, for the past six weeks, it has been especially chaotic, kickstarted by Tesla CEO Elon Musk’s side hustle of trying to buy social media platforms.

Things got really interesting this week. Wedbush analyst Dan Ives — a noted Tesla Bull — slashed his price target from $1,400 to $1,000. Billionaire Leo Koguan claims to be the third-largest individual Tesla shareholder. He called for the company to use its free cashflow to buy back $15 billion in Tesla stock over the next two years. TSLA stock was also removed from the S&P 500 ESG Index. Those are some pretty major headlines.

Throw in the general market volatility because of economic factors and Russia’s invasion of Ukraine, and you have TSLA stock trading at prices not seen since last August. If you are okay with the potential for further volatility in the short-term, buying TSLA stock at this price is a solid move for building your long-term growth portfolio.

The Current Panic Focuses on Short-Term Concerns

Why would you want to buy Tesla stock when it’s being battered so thoroughly?

The key to the current price drop is economic headwinds in 2022, including a Covid-19 resurgence in China. The stock market in general is being hit by economic concerns. Investors are worried about inflation, rising interest rates and the potential for a recession. All of the things would be a challenge for Tesla, of course. Keep in mind that the company has already been making big moves in response, including a series of price hikes. Doing so has done nothing to reduce demand for its EVs. 

If the situation spirals to the point of a recession, Tesla could see sales impacted. However, Tesla’s wealthy buyers are less likely to feel the effects of a recession. And recessions don’t last forever.

The China problem — the reason for Wedbush’s downgrade — is bigger, but will be short-lived. In a nutshell Wedbush’s Dan Ives is concerned about the shutdowns of Tesla’s Shanghai gigafactory due to Covid-19 lockdowns. This slashed production at the plant in April and lockdowns have impacted demand in China.

However, this is very much a short-term issue and the plant is now back in operation. The aftermath may cause additional volatility for TSLA stock, but that won’t last for long. So don’t be overly worried about the beating Tesla stock is taking at the moment.

The Growth Picture for Tesla Stock Looks Solid

Tesla is humming. It’s setting all-time electric vehicle (EV) delivery records in 2022. Its Texas and Berlin Gigafactories are open, massively upping its production capacity. The Cybertruck is coming. Earlier this week, Tesla started taking deposits on its all-electric semi truck.

Tesla is the front-runner in a global EV market that is projected to be worth nearly $824 billion in 2030. Considering $163 billion in EVs were sold in 2020 — many of those by Tesla — the long-term growth potential for TSLA stock is obvious.

Should You Buy TSLA Stock?

The volatility in TSLA and the overall downward trajectory has investment analysts beginning to look a little more cautiously at Tesla stock. However, the overall picture remains largely positive — despite moves like Wedbush slashing its price target.

Checking in with CNN Business, the 42 investment analysts polled have TSLA stock rated as a consensus “buy.” Their median price target of $1,108 offers an upside of about 70%.

TSLA stock also earns a coveted “A” rating in Portfolio Grader. If you can stomach likely continued volatility in the short term, buying Tesla stock now will add a high-performance, long-term growth stock to your portfolio at a bargain price.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.