Investing in Tesla stocks on positive earnings report

As of January 27, 2026, Tesla shares have extended their slide from the late-December 2025 peak, with the most recent session closing at $434.68. Although a fragile consolidation is taking shape in the $430–$440 band, the overall technical structure offers little bullish conviction, keeping the door open to further losses if this week's earnings report fails to impress.

The daily chart shows prices attempting to carve out a local base after dropping from the $490 zone. The $420–$430 area has so far acted as a buffer. However, the real test for any recovery lies at the $453 resistance—a level that capped the mid-January bounce and aligns with the upper Bollinger Band ($444.79). Until that barrier is cleared, the short-term trend lacks a confirmed bullish reversal. 

Looking more closely, the Chaikin Oscillator is still in the negative zone. This demonstrates selling pressure has dominated recent trades. Still, the indicator's steady climb from its January 8 low is a notable bright spot, suggesting that the bearish grip is weakening. A key development to watch for is a bullish crossover above the zero line, which would be a clear signal that buying interest is making a meaningful comeback. 

From a broader perspective, fundamental flow has been soft, to say the least. Recent ACEA data provided a stark snapshot: Tesla registrations in Europe plummeted 20.2% in December, while rival BYD saw explosive growth of 229.7%. Compounding the pressure, quarterly profit expectations have been slashed by 40%. Yet, beneath these concerns, the market's faith in the company's autonomous driving ambitions continues to provide a valuation cushion, keeping longer-term bulls engaged. 

All eyes are now on the January 29 earnings print. A miss on results or guidance could easily break the  support, prompting a renewed sell-off. On the flip side, a solid report—especially if accompanied by tangible progress on Full Self-Driving (FSD) validation—may spark a sharp rally back toward the $453 resistance.

Pay attention to the trading strategy outlined below:

Right now, it is probably best to wait for the quarterly report to come out. A decisive breakout above $440 on rising volume would trigger a buy signal, thus confirming bullish momentum. Place Take profit at $453. Set Stop loss at $421.

This forecast holds true from January 27 till February 3, 2026.