A flurry of news, plus the recent uptick among growth stocks, has sprung Tesla (NASDAQ:TSLA) shares back to life. In the past month, TSLA stock has bounced back to the tune of around 15%.

To some Tesla skeptics, this may seem like little more than a “dead cat bounce.” After falling during the tech/growth stock selloffs earlier this year, to those who believe shares in this electric vehicle (EV) industry leader are mostly hype may believe that this bout of excitement will cool, and the stock will find itself moving sharply in reverse pretty soon.

My view? I agree that said excitement could cool down in the near term. That said, if you have a long time horizon, this may work in your favor. Weakness in the near term could be a buying opportunity. With this, let’s dive in, and find out why.

TSLA Stock and Its Midsummer Spike

Tesla’s midsummer spike in price can be attributed to several factors. Yes, the July/August growth-stock rally has played a role. Increased hopes that inflation is peaking, and therefore the Federal Reserve will start to ease on its rate hike plans, has resulted in the market warming back up to such plays.

However, not all of the big jump in TSLA stock can be chalked up to macro developments. News with the company has also helped get shares moving back in the right direction. For example, progress with a bill making its way through the U.S. Congress right now. Among other things, this bill provides tax incentives that could benefit the EV industry.

Alongside this is another bit of news more directly related to the EV maker: an update on the planned release date for Tesla’s long-awaited truck models. Per a tweet from CEO Elon Musk, the company plans to start delivering its semi-truck this year, with Cybertruck pickup deliveries starting in 2023.

Yet while the skeptics may be wrong in saying this rally has been fueled by hype and not real news, they may be right in thinking that this rally could cool in the short term.

Possible Weakness Ahead?

While TSLA stock has moved higher on mostly positive news, in the near term, some newer developments may emerge that could put pressure on the stock again. So far, news of Elon Musk’s big insider selling hasn’t had much of an impact, but further sales could have an impact.

That’s not all. The upcoming stock split could result in weakness for shares. On Aug. 24, Tesla will split on a 3-to-1 basis. Why would a split be bad news for shares? Although splits change nothing about a company’s underlying value, it’s possible that some traders have been buying it up this month, ahead of the split date, hoping the split sparks buying demand among retail investors.

However, in the past few months, this split trade hasn’t really worked. Instead of post-split rallies, post-split dips have become more common. The same thing could play out here with after the split date.

In short, there’s enough out there to not only bring Tesla’s rev up rally to a halt, but send it slightly lower as well. So, should you stay away? Not necessarily, if you are a growth investor with a long time horizon.

The Takeaway

Tesla stock earns a B rating in my Portfolio Grader. Near-term traders dabbling in shares could find themselves frustrated in the short term. A slight pullback may lie ahead. The skeptics may be right that this rally is about to reverse course.

This doesn’t mean, though, that long-term investors should avoid it. While possibly right with their short-term forecasts, the skeptics could again be proven wrong when it comes to this EV leader’s long-term stock performance.

Recent developments like the aforementioned potential tax incentives for electric vehicles may help further speed up EV adoption. The release of its truck models starting later this year also bodes well for the company’s long-term prospects. Expanding its offerings, all while demand keeps rising, points to continued revenue and earnings growth in the years ahead.

Bottom line: keep TSLA stock on your watchlist. The opportunity to scoop up a position on weakness could soon emerge.

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.