Buying Tesla stock on strong operational results and optimistic earnings expectations

Tesla shares are currently trading within the $370–$450 flat range. The company’s solid operational performance, combined with sustained long-term interest in its electric vehicle (EV), artificial intelligence (AI), and autonomous driving businesses, continues to underpin the stock. High market valuations and associated risks have not overshadowed the fundamental picture, which signals a potential breakout above the current range and a further rally.

Tesla’s key pillar of support is the stability of its core EV business. The company retains its leading position in the global market. Following a rocky start to the year, the latest delivery data (+25% year-over-year) confirmed that demand is on the mend. In addition, the firm is now heavily investing in production optimization, which should lower the cost per vehicle and positively impact the overall profitability in the future.

The quarterly earnings report—due July 22—will be a key event for both Tesla and its investors. Notably, traders are likely to focus less on the actual figures and net profit than on management’s comments regarding future sales and margins. Another critical topic on the agenda will be the outlook for the company's robotaxi and Full Self-Driving (FSD) projects. If Tesla beats the consensus estimates—which suggest quarterly revenue of $25.55 billion and earnings per share (EPS) of $0.49—and reaffirms its strong prospects for the remainder of the year, it could be a powerful catalyst for the stock, paving the way for new local peaks.

Turning to the technical side, we should note that Tesla stock has held the important support zone between $370 and $400, raising the likelihood of a rally toward six-month highs near $450.

The final recommendation:

— Buy Tesla shares at the current price around $408, targeting $450 within a couple of weeks.

— Place Stop Loss at $390, just below support, for better risk management if the market plays against us.