Tesla, Inc. (NASDAQ:TSLA) shares have been trading in a range since the pullback that followed the release of the electric vehicle maker’s second-quarter results on July 19. Bullish analyst Dan Ives, however, isn’t losing sleep over the current lackluster phase.

UAW Strike Win-Win For Tesla: There’s a minimal possibility of Tesla employees demanding more pay or clamoring for unionization in the wake of the United Auto Workers’ union strike that has brought operations standstill at the Detroit big three, said Ives in an interview with CNBC on Tuesday.

It’s a win-win situation for Tesla, given the likelihood of the Detroit automakers passing on the higher costs to the consumers in the eventuality of a deal with the UAW, the analyst said.

“This is a gut punch for [Mary] Barra and [Jim] Farley,” he said.

He suggested that if General Motors Corp. (NYSE:GM), Ford Motor Co. (NYSE:F), and Stellantis N.V. (NYSE:STLA) took the UAW deal, it would essentially impair their business models for the next decade.

These automakers will be up against a non-union Tesla, non-union Rivian Automotive, Inc. (NASDAQ:RIVN), and foreign automakers, Ives said.

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In China, Tesla is starting to gain market share, the analyst said. “That’s why in our view, this is more what I view as the pause into the next phase of the Tesla growth story … which is why we’ve been telling our investors to continue to hold this name,” he added.

Tesla Pursuing Right Strategy: Demand has definitely softened, as is seen in China, where companies are resorting to price cuts, Ives said. The Poker move of cutting prices was the right thing to do, as seen in terms of the stimuli in demand for Tesla, he added.

The analyst conceded that Tesla is going through a transition in terms of demand in the U.S. and globally. Going by Tesla’s scale of production, the analyst said Tesla could see deliveries and production of 2.5 million-3 million units over the next two years. He sees the current period as the middle phase of the next phase of the Tesla growth story.

The analyst also noted that Chinese consumers, especially in the high-end and rising middle class, want Teslas. But it would become an issue if the Chinese EV makers came into the U.S.

Tesla Not Merely An Auto Company: Ives is of the view CEO Elon Musk will introduce a sub-$30,000 EV by the end of next year. “Plus with Cybertruck, and that’s why I just view this is in the early days, with supercharger in the sum-of-the-parts,” he said.

“This is not an auto company, this is a disruptive technology company. That’s why we are buying here,” he added.

Tesla ended Tuesday’s session down 2.02% at $246.53, according to Benzinga Pro data.

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