Tesla (NASDAQ: TSLA) slumped through most of the first half of 2024, and the stock is still underperforming the S 500 year to date. But investors seem to be giving it a closer look again. After a better-than-expected second-quarter deliveries report, it soared at the end of June and the beginning of July, and some investors seemed to be betting on its potential in AI.

The electric vehicle (EV) leader has long traded at a premium to other automakers, but its valuation seems increasingly hard to justify based on its EV business alone. Automotive revenue fell 7% in the second quarter to $19.9 billion, though overall revenue ticked up by 2% to $25.5 billion. Margins also continued to slide -- its operating margin dropped from 9.6% in the year-ago quarter to 6.3% this time, and adjusted net income tumbled by 42% from $3.1 billion to $1.8 billion.

Image source: Tesla.

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Source Fool.com