Invest in Tesla shares ahead of earnings release

Tesla will unveil its second-quarter financial performance on July 22, after the closing bell. Analysts expect substantial revenue growth, fueled by what appears to be an operational machine firing on all cylinders. And the figures speak for themselves: approximately 450,000 vehicles were produced and over 480,000 were delivered for the mentioned period—a 25% year-on-year hike that far exceeded consensus estimates.

These delivery numbers are nothing short of impressive and suggest that demand for the company's EVs is staging a comeback. However, for the stock to sustain its upward trajectory, investors need hard proof that the sales surge wasn't achieved through aggressive discounting, which would further squeeze already low automotive margins. Meanwhile, Tesla's heavy bets on artificial intelligence, robotics, and autonomous driving remain a double-edged sword. While these ventures could redefine the tech giant's future, they also come with a hefty price tag—and soaring R&D spending would weigh heavily on free cash flow. In other words, record-breaking deliveries may not be enough to spark a positive market reaction.

This week, all eyes will be on Elon Musk's comments about the timeline for rolling out robotaxis and launching production of the long-awaited Cybercab. Tesla's valuation is more about tomorrow than today—less about how many cars it sells and more about whether it can turn autonomous driving and robotics into reliable revenue engines. Such a shift unlocks massive growth potential, but it also makes the stock more vulnerable to delivery delays, technological speed bumps, and rising capital expenditures.

On the technical front, Tesla shares have drifted toward a significant support zone near $370—a level that has historically attracted buyers like a magnet. If this floor holds firm, it could pave the way for a recovery rally, with the next major hurdle sitting at $420.

The ultimate recommendation is to buy Tesla stock at the current price ($370), aiming to reach $420 within one week. To protect ourselves from adverse market movements, place a Stop Loss order at $350.