Since hitting a peak in 2021, Tesla (NASDAQ: TSLA) has struggled to construct a lot, if any, momentum. As soon as buying and selling at greater than $400 per share, the inventory has been crushed up for the final three years and at present sits at round $185.Whereas those that invested earlier than 2021 are probably sitting on comfy beneficial properties, those that’ve invested extra not too long ago might not be so lucky. Maybe Tesla’s finest days have already handed, begging the query: Is it too late to spend money on Tesla?Picture supply: Getty Photos.Explaining Tesla’s fallTesla’s inventory dip can largely be attributed to dwindling gross-profit margins. At its peak, Tesla’s margins had been above 30%, simply one of the best in your complete auto business. At this time, these margins have receded to 17% which, though nonetheless close to the highest, now face a lot of pressures.The rationale for this decline is diversified however could be boiled all the way down to a discount in client demand for electrical automobiles (EVs). Increased rates of interest have dissuaded would-be patrons because of the elevated prices of financing a automobile. In an try to stimulate demand, Tesla determined to chop costs in 2023. This, mixed with greater prices throughout provide chains and labor markets, precipitated margins to tumble.TSLA Gross Revenue Margin (Quarterly) ChartHowever, rates of interest will fall ultimately, and demand for EVs are more likely to rebound as these components are usually cyclical. Present traits recommend that charges might begin to lastly lower by 12 months’s finish. Naturally, as borrowing turns into cheaper, client demand for EVs ought to rebound.Moreover, Tesla stands to profit from the general pattern in EV adoption all over the world. Governments are implementing stricter emissions rules and providing incentives to encourage EV purchases, making a supportive atmosphere for Tesla’s long-term development.Plus, the corporate is increasing internationally with building of a manufacturing facility in Mexico underway and plans to enter India and Thailand within the coming years.A brand new Tesla takes shapeTesla is striving to develop into extra than simply an EV firm. Considered one of its key efforts proper now could be constructing out autonomous automobiles and ultimately launching a robotaxi enterprise. Tesla’s self-driving know-how has made vital strides, and the corporate is making ready for a worldwide demo of its robotaxi on Aug. 8.Along with autonomous automobiles, Tesla can be within the midst of getting its humanoid robotic, Optimus, prepared for market launch, which is anticipated to occur in 2025. Whereas these endeavors are usually not but prepared for widespread business launch, Tesla has made notable progress. Optimus is already being utilized in Tesla factories, showcasing its potential to boost effectivity and scale back labor prices throughout all types of industries.Story continuesTaking the optimistic routeCritics will level out that Tesla and deadlines do not at all times combine nicely. However it’s tough to cope with its skill to ultimately observe by way of. If Tesla can replicate related ranges of success in its robotaxis and Optimus because it has with its EVs, it might rework the corporate and possibly even society for the higher.Whereas it’s tough to measure the true financial affect that these two improvements could have just because no such market exists for these kind of merchandise, some estimates put the overall income of robotaxis at $700 billion a 12 months and Optimus at round $1 trillion. Mixed, and if correct, meaning the 2 would greater than triple Tesla’s present income.On the threat of being optimistic, I consider Tesla’s finest days stay forward and that it is not too late to spend money on one of the vital transformative corporations of the long run. Tesla’s skill to innovate and push the boundaries of know-how has been a key driver of its success up to now. If it could possibly proceed to guide within the EV market whereas efficiently increasing into new areas like autonomous automobiles and robotics, the corporate might soar to even better heights.Must you make investments $1,000 in Tesla proper now?Before you purchase inventory in Tesla, take into account this:The Motley Idiot Inventory Advisor analyst crew simply recognized what they consider are the 10 finest shares for traders to purchase now… and Tesla wasn’t considered one of them. The ten shares that made the reduce might produce monster returns within the coming years.Take into account when Nvidia made this listing on April 15, 2005… in case you invested $1,000 on the time of our advice, you’d have $757,001!*Inventory Advisor gives traders with an easy-to-follow blueprint for fulfillment, together with steerage on constructing a portfolio, common updates from analysts, and two new inventory picks every month. The Inventory Advisor service has greater than quadrupled the return of S&P 500 since 2002*.See the ten shares »*Inventory Advisor returns as of June 24, 2024RJ Fulton has positions in Tesla. The Motley Idiot has positions in and recommends Tesla. The Motley Idiot has a disclosure coverage.Is It Too Late to Purchase Tesla Inventory? was initially printed by The Motley Idiot