Even With Tesla Under $400, I'd Still Rather Buy This Unstoppable Growth Stock in July
Tesla shares are trading for less than $400, but one fast-growing restaurant chain looks like the better stock to buy.
Overview
Tesla (NASDAQ: TSLA) has slipped below $400, and plenty of investors see the pullback as a bargain on a future robotaxi empire. I understand the appeal, but with July cash to put to work, I would rather own a consumer growth story I have far more conviction in: Cava Group (NYSE: CAVA).
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Tesla's recent drop is worth understanding before moving on. The company actually delivered a strong quarter on volume, beating expectations, yet the stock sank anyway. Investors zeroed in on the less flattering details: shrinking profit margins as Tesla leaned on discounts and inventory to move cars, months of declining sales in its home North American market, and heavy spending on autonomy and robotics that is squeezing cash flow.
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Originally published at www.fool.com.