Tesla’s (NASDAQ:TSLA) journey in 2024 has been something however clean. We’ve acquired manufacturing facility shutdowns, transport woes, and a few critical competitors nipping at Tesla’s heels, particularly in China. But, Elon Musk’s unwavering dedication to increasing Tesla’s EV lineup has saved the corporate on monitor. The current launch of Tesla’s Q2 manufacturing and supply report has everybody speaking. Whereas the numbers present a decline in comparison with final yr, they nonetheless managed to beat analysts’ expectations, giving the inventory a much-needed increase.Personally, I’m bullish on Tesla inventory. Whereas the corporate faces important challenges, its potential to beat supply expectations in a tricky setting, coupled with its sturdy model and management in EV know-how, suggests potential for continued progress.Q2 Supply and Manufacturing HighlightsTesla managed to provide round 411,000 automobiles within the second quarter, which is spectacular contemplating the challenges the agency has confronted lately. Tesla delivered extra automobiles than it produced, with roughly 444,000 automobiles going to clients’ driveways. This marks a 4.8% year-over-year decline in deliveries and a 14% drop in manufacturing in comparison with the identical interval in 2023.As anticipated, the Mannequin 3 and Mannequin Y have been the celebs of the present, accounting for the lion’s share of manufacturing at 386,576 items and deliveries at 422,405 items. The Mannequin S, Mannequin X, and the much-hyped Cybertruck made up the remainder, with 24,255 items produced and 21,551 items delivered.Analysts had anticipated Tesla to ship round 439,302 automobiles, so the corporate’s efficiency was a welcome shock. This information despatched Tesla’s inventory hovering 10% to $231.26 regardless of being down about 7% for the yr.In simply three buying and selling days, from July 1st to July third, Tesla’s inventory surged by a jaw-dropping 23%. That’s proper, almost 1 / 4 of the corporate’s worth was added in simply 72 hours, and the inventory has gone up a bit extra up to now few days.What’s much more spectacular is that this surge has utterly erased Tesla’s year-to-date losses. The inventory is now up 1.8% for the yr, a far cry from the place it was simply two weeks in the past.Nevertheless, it’s vital to notice that even with this current dip, Tesla continues to be buying and selling at a big premium in comparison with different automakers. Its P/E ratio of 64.3x is miles above the likes of Common Motors (NYSE:GM) (5.7x) and Ford (NYSE:F) (13.3x), indicating that plenty of progress is already baked into the inventory value. The approaching quarters will likely be essential in figuring out whether or not Tesla can keep this momentum and justify its lofty valuation.Story continuesTesla’s Challenges and Strategic ResponsesTesla is feeling the warmth from competitors, particularly in China. BYD (OTC:BYDDF), their largest rival, bought round 426,000 pure electrical automobiles in Q2, which is simply shy of Tesla’s 443,956 deliveries—a spot of solely 17,956 items. And it’s not simply BYD; different Chinese language automakers like Geely (OTC:GELYF) are additionally stepping up their recreation, with Geely’s gross sales leaping 41% within the first half of 2024.In response, Tesla has been aggressively chopping costs since early 2023, which has helped keep gross sales quantity but additionally squeezed revenue margins. Its Automotive gross margin dropped to 18.5% in Q1 2024 from 21.1% in Q1 2023. Tesla additionally confronted important challenges earlier this yr, together with an arson assault at their German manufacturing facility and transport disruptions as a result of Purple Sea riot, contributing to a 14% year-over-year decline in Q2 manufacturing.Regardless of these hurdles, Tesla isn’t simply taking part in protection. Elon Musk has plans to speed up the mass manufacturing of reasonably priced EVs, doubtlessly launching within the first half of 2025. This may very well be a game-changer for reaching a broader market. Moreover, Tesla’s power storage enterprise is flourishing, with Q1 income hitting a file $1.64 billion and power deployments reaching 4.1 GWh.Tesla can be closely investing in AI and robotics, almost doubling their AI coaching capability. Musk is so assured of their Optimus humanoid robots that he thinks they may increase Tesla’s market worth to $25 trillion (its market cap is at the moment round $800 billion).What’s Subsequent for Tesla and Its Buyers?A number of key occasions are developing that would considerably impression Tesla’s future. First, the Q2 earnings report on July twenty third will give us an in depth take a look at their monetary efficiency. Analysts anticipate income to succeed in $23.83 billion. Additionally they predict earnings per share (EPS) of $0.60, with a spread of $0.41 to $0.87. This represents a big enchancment from the earlier quarter’s EPS of $0.45. If Tesla’s income progress turns optimistic in Q3, it could mark a serious restoration milestone.Then there’s Robotaxi Day on August eighth, which may very well be a giant deal for Tesla’s autonomous driving ambitions. Nonetheless, analysts have blended views on Tesla’s inventory. Dan Ives from Wedbush is optimistic, elevating his value goal to $300, believing the worst is behind Tesla and that upcoming improvements just like the Robotaxi may drive progress.However, Colin Langan from Wells Fargo is cautious, recommending promoting Tesla shares resulting from issues about declining supply progress and the impression of value cuts on margins. His value goal is a conservative $120. Guggenheim analysts additionally raised their value goal to $134 however maintained a Promote score, noting Tesla’s spectacular power storage deployments as a key issue.Is Tesla Inventory a Purchase, In response to Analysts?In response to the newest analyst scores, Tesla inventory has a consensus Maintain score. Out of 35 analysts protecting the inventory, 13 fee it a Purchase, 14 a Maintain, and eight a Promote. The common TSLA inventory value goal of $184.41 implies draw back potential of round 27.1% from the present value.The Backside LineIn conclusion, Tesla’s Q2 supply report was a blended bag. Whereas the corporate beat estimates, deliveries nonetheless dropped year-over-year. The market reacted positively, however analysts are divided on the inventory’s future. Some imagine the worst is over for the corporate, whereas others stay cautious in regards to the aggressive pressures and potential margin squeezes.Regardless of these challenges, I’m bullish on Tesla inventory. The corporate’s resilience, dedication to increasing its EV lineup, and thrilling potential in AI and power storage make it a compelling funding. The upcoming Q2 earnings report on July 23 and Robotaxi Day on August 8 may present extra readability and doubtlessly drive the inventory increased. As all the time, do your homework and make investments properly.Disclosure