Shares of Tesla (NASDAQ:TSLA) have swung violently up and down over the past year, rallying big on positive catalysts and dropping big on negative catalysts. Unfortunately, neither permanent bear nor permanent bull has been right thus far. Positive and negative catalysts have been mixed in with equal frequency. The net result? Despite multiple 20%-plus rallies and drops, TSLA stock price has barely budged since March 2017.

But there’s reason to believe that the bull thesis on TSLA stock will win out in the long term.

Why? Because if you look at all the catalysts that have impacted the stock over the past several quarters, the positive ones have been rooted in fundamentals. The negative ones, meanwhile, have been rooted in optics. In the long run, fundamentals almost always trump optics. As such, given Tesla’s recent catalyst flow, it is reasonable to believe that positive fundamental catalysts will eventually entirely outweigh negative optics catalysts. When that happens, TSLA stock should rally to permanent new highs.

Here’s another way of looking at this. The big picture outlook of Tesla turning into a leader in the enormous and rapidly expanding EV market remains on track. So long as this narrative remains on track, the long-term outlook for TSLA stock to head materially higher remains favorable.

Fundamentals Trump Optics

There have been multiple catalysts which have significantly impacted TSLA stock over the past several quarters. Although positive and negative catalysts have been exchanged with roughly equal frequency, a pattern has emerged which should give bulls hope: positive catalysts have been rooted in fundamentals, while negative catalysts have been rooted in optics.

For example, TSLA stock dropped big during August 2018 on concerns related CEO Elon Musk’s leadership. Most of those concerns were centered around the now infamous “funding secured” tweet. That is a negative catalyst related to the optics surrounding Musk’s leadership. Then, TSLA stock bounced back throughout most of September 2018 as positive updates rolled in regarding Model 3 production ramp. That is a positive catalyst related to the fundamentals surrounding new EV production ramp.

Another example: in late September 2018, TSLA stock dropped big on news that the SEC was suing Musk, and that possible DOJ action would follow. That is a negative catalyst related, again, to the optics surrounding Musk’s leadership. A month later, TSLA stock rallied in a big way following a monster earnings report in which Tesla showed a surprise profit. That is a positive catalyst related to the fundamentals surrounding Tesla’s long term profitability.

Time and time again, you will see examples of this. TSLA stock drops big on bad optics. It rebounds big on strong fundamentals. It drops again on bad optics, and then rebounds again on strong fundamentals. Lather. Rinse. Repeat.

This is a favorable long-term dynamic for bulls. Eventually, the positive fundamental catalysts will entirely outweigh the negative optics catalysts. In other words, all the negative headlines surrounding potential SEC action, Musk tweets, and other optics related issues will be drowned out next to Tesla turning into the world’s largest electric vehicle maker.

Long-Term Outlook Is Healthy

Given the volatility related to the Tesla narrative, it’s nearly impossible to tell when positive fundamentals will permanently outweigh negative optics. As such, trying to time the big rally in TSLA stock is equally impossible. Instead, investors should do two things here. One, focus on the big picture. Two, so long as that big picture remains favorable, use optics-related dips to buy shares when they fall below $300.

On the first point, the big picture fundamentals supporting TSLA stock remain favorable. Tesla is pioneering a global EV revolution that is still in its early innings. The two things keeping this revolution from moving into the latter innings are price points and infrastructure. Tesla is aggressively lowering price points, and just as aggressively building out infrastructure. On both fronts, they are miles ahead of the competition.

As such, Tesla projects to remain the unchallenged leader in the secular growth EV market. Over time, this market will be worth hundreds of billions of dollars, making Tesla’s present $50 billion market cap look like a steal (my math indicates that TSLA stock could have a market cap of over $200 billion one day).

On the second point, because the big-picture fundamentals remain healthy, optics-related drops towards and below $300 are buying opportunities in TSLA stock. They should continue to be viewed as such until the big picture fundamentals materially change.

Bottom Line on TSLA Stock

Tesla is a long-term winner with a lot of near-term distractions. Investors shouldn’t let those distractions impact their game-plan. Buy TSLA stock on optics-related dips towards and below $300. Sell some shares on fundamentally-driven rallies towards and above $350. And always keep a core holding for that long overdue breakout moment when global Model 3 production and delivery ramp drives TSLA stock to permanent new highs.

As of this writing, Luke Lango was long TSLA.