What happened

Week to date, shares of Tesla (TSLA 3.17%) were down 11% through Thursday's close, according to data provided by S&P Global Market Intelligence. The stock has been under pressure in recent months over worries about demand trends for electric vehicle amid a weak economy.

Year to date, the stock has fallen 51%, but some analysts are still bullish on the stock heading into 2023. 

So what

Earlier this week, reports surfaced that the electric vehicle (EV) maker was cutting production of the Model Y at its Shanghai Gigafactory in China.  Regardless of whether those reports are accurate, Tesla is still growing quite fast in a tough economy. In the third quarter, Tesla grew revenue 55% year over year, with free cash flow more than doubling.

While management cited a recessionary environment in China and Europe, the company is still on pace for a strong fourth quarter. Morgan Stanley analyst Adam Jonas believes Tesla will outperform in the near term, even with electric vehicle sales across the industry expected to decelerate. 

Earlier this week, the company delivered its first long-haul truck to PepsiCo. Tesla is also in the process of preparing its Texas factory to ramp up production of Cybertruck next year. 

Now what

Tesla's ability to continue posting solid growth in this environment speaks to the power of its brand. Analysts expect the company to grow full-year revenue by 55% in 2022 before another 39% increase next year. 

Tesla is emerging as a vehicle that people aspire to own, and that is the most important quality about the company that stacks the odds in favor of continued market share gains and returns to investors.