Why tesla stocks are still bullying??

Tesla Stock Remains Bullish in 2024

Resilient Demand and Deliveries
Despite facing two consecutive quarters of year-over-year declines in deliveries, Tesla managed to report better-than-expected Q2 2024 delivery numbers . This suggests that the company's demand environment remains relatively resilient, allaying some concerns about weakening consumer appetite for its electric vehicles.

Positive Sentiment Shift
Investor sentiment towards Tesla has improved in recent months. The approval of Elon Musk's massive compensation package  and the company's ability to beat delivery expectations have helped restore confidence in the stock. This positive sentiment has fueled the recent rally, with Tesla's stock gaining over 30% in July alone .

Potential Catalysts Ahead
Investors are eagerly anticipating Tesla's Q2 2024 earnings report on July 23rd , which could provide further insights into the company's operating margins and delivery outlook. Additionally, the upcoming "Robotaxi Day" event on August 8th is seen as a potential catalyst, as it could showcase Tesla's progress in autonomous driving technology .

Valuation Concerns Persist
Despite the recent rally, Tesla's valuation remains a concern, with its forward price-to-earnings ratio reaching 92x - more than double its level from a few months ago . This high valuation may make it challenging for the stock to sustain its current momentum, especially if the company's financial performance does not meet lofty expectations.

Analyst Sentiment is Mixed
Wall Street analysts have a mixed view on Tesla, with a consensus "Hold" rating and a mean target price of $179.03 . While some analysts, like Wedbush's Daniel Ives, remain bullish, others, such as GJC Research's Gordon Johnson, are more skeptical about the company's long-term prospects.In conclusion, Tesla's stock has shown remarkable resilience in 2024, driven by factors such as better-than-expected deliveries, improved investor sentiment, and anticipation of potential catalysts. However, the company's high valuation and mixed analyst views suggest that the stock may face challenges in sustaining its current momentum in the near term.