Tesla Costs More Than $350 a Share. Here's Why I'd Still Buy One.

Like the head-turning Roadster it reintroduced last week with some snazzy new performance features, Tesla (NASDAQ: TSLA) shares come with a big price tag. The stock enters this week at $354.72.

Despite the triple-digit price of admission, now could be a good time to buy at least a single share. Even if your broker is open to selling you fractional shares, going with a round share is more than just a cleaner transaction. It provides you with full voting power and the ability to transfer to a brokerage account, which may not allow fractional purchases.

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It can fly

There's a lot going for Tesla stock these days. A surge in gas prices is boosting the value proposition of electric vehicles, reversing the bearish narrative that began for U.S. drivers in the fall of last year after federal tax credits of up to $7,500 for new purchases or leases expired.

The high-end Roadster is just one of the many new offerings coming from the world's most valuable automaker by market cap. Tesla's Optimus humanoid robots, improvements in its autonomous driving platform, and a push into commercial vehicles leave analysts expecting annual revenue to nearly double in the next three years.

Sticking the landing

A lot can also go wrong. Profitability was cut in half in its previous quarter. Analysts see a much smaller decline on the bottom line when it reports third-quarter results later this week, but it still needs to turn that around.

The top line has recovered quickly from last year's fourth-quarter decline, bringing us to today's opportunity. The shares are down 21% this year. The fundamentals are holding up better. Even as we head into Wednesday afternoon's financial update, analysts are bracing for flat sales. This is actually a good thing, since last year's third quarter was when sales spiked as U.S. buyers scrambled to get their orders in before the federal tax credit expired.

Tesla is out of favor with investors this year. Volatility has always been part of this story, but historically, as with its new Roadster Rocket, it's just a matter of time before it lifts off the ground.

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.