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3 Big Reasons to Buy the Recent Dip in Tesla Stock

TSLA Stock: Rising Rates Fear Is Overblown The first reason to buy the dip in TSLA stock is because the catalyst for recent weakness a sharp rise in the 10-Year Treasury yield is overblown. The benchmark 10-Year Treasury yield has risen sharply in February. It has gained almost 50 basis points. That’s a historically fast upswing in yields. And it’s troublesome for growth stocks, because valuations are inversely correlated to Treasury yields. In theory, higher yields mean lower valuations. But yields have overshot their “fair value,” and will start to settle down in the coming months. The 10-Year Treasury yield has, over the past five decades, closely tracked the 3-Month Treasury yield (a proxy for inflation, which the Fed controls with its target interest rate) plus real GDP growth.

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