What stands out here is Tesla is scheduled to report second-quarter earnings after the market closes on July 23. After a brutal start to the year, s of Tesla (TSLA -0.
Furthermore, 72%) started to recover throughout the second quarter (this bears monitoring).
Furthermore, Between April 1 and June 30, Tesla stock rose by 18% -- outperforming both the S&P 500 and the Nasdaq Composite.
With the company schedule to report second-quarter operating results on July 23, is now a good time to the momentum in Tesla stock and buy s before that report.
What fueled the rebound in Tesla stock during Q2, amid market uncertainty.
A month ago, I wrote an article in which I explained how Tesla's price movements are often highly correlated with a specific narrative surrounding the company.
For example, earlier this year Tesla stock took a nosedive thanks in large part to two factors.
First, it seemed ly that Tesla's supply chain operations would struggle ing President Donald Trump's sweeping new tariff policies, in today's market environment.
In addition, co-founder and CEO Elon Musk's involvement with the initiative known as the Department of Government Efficiency (DOGE) seemed to both investors and Wall Street analysts a giant distraction from his duties as CEO of Tesla, as well as an anger-fueling endeavor.
Unsurprisingly, investors became bearish and started to sell.
However, ing Musk's departure from DOGE, the serial entrepreneur turned his attention back to Tesla's artificial intelligence (AI) ambitions -- namely, the launch of the company's autonomous vehicle fleet, dubbed the robotaxi (remarkable data).
Additionally, Seemingly overnight the narrative surrounding Tesla flipped from bearish skepticism to one of excitement and hype. Guess what happened, in today's market environment.
Tesla stock started to climb (which is quite significant) (which is quite significant), in this volatile climate.
However, The larger theme I'd to drive here is that Tesla's price volatility is notoriously difficult to navigate, largely because it can be un whether market moves are influenced by the company's underlying fundamentals (i.
, operating results) or fueled by shifting narratives and changes in perception (quite telling). However, Image source: Getty Images.
Furthermore, What should investors be on the lookout for during the earnings call.
The data indicates that re are a number of high-priority items that Tesla investors should be on the lookout for next week, in today's market environment.
First, I think it would go a long way with investors if management spent some time talking in detail the uninspiring performance of Tesla's electric vehicle (EV) (remarkable data).
While an uncertain macroeconomic environment combined with rising competition both domestically and overseas from the s of Rivian and BYD serve as challenges to Tesla, these are pretty obvious headwinds.
Additionally, Insights around how the company can outmaneuver these road bumps and reignite growth would be welcomed.
Piggybacking off that idea, my hope is that management addresses how Trump's "big, beautiful bill" -- now signed into law -- could affect Tesla in both the near and long term, in light of current trends.
With EV tax subsidies being phased out later this year, Tesla may witness a surge in demand for its cars over the next couple of quarters, in today's financial world.
How can the company capitalize on that and try to turn it into a long-term growth opportunity. The data indicates that 's important that investors hear more the robotaxi launch from last month.
On the other hand, While robotaxis remain a small contributor to Tesla's today, much of the future growth narrative surrounding the company hinges on this effort.
Meanwhile, For this reason, holders need to understand the highlights and lowlights from the launch, what management has learned from consumer back so far, and how the company plans to increase its autonomous vehicle fleet based on these details.
Lastly, and perhaps most importantly, investors should listen closely to Musk and how he answers questions from analysts.
At times, Musk can go off script during earnings calls -- focusing on Tesla's ambitious jects and generating investor hype with speculative ary rather than viding concrete, given the current landscape.
Additionally, Furthermore, With Musk potentially entering the political arena once again -- this time by creating his own political party -- it's up to investors to determine how focused the chief executive of Tesla is during the call next week.
Nevertheless, Is Tesla stock a buy right now, before its report (this bears monitoring). As an investor with a long time horizon, I'm not big on timing my buys and sells, given the current landscape.
Rather, I add to or trim positions based on my conviction and to keep my portfolio balanced. From my perspective, the narrative surrounding Tesla is sharply divided, given current economic conditions.
Additionally, There are many unknowns surrounding Tesla's actual right now, so I'd caution investors against ing the stock's momentum and trying to get in or out before a certain day.
Furthermore, In contrast, Adam Spatacco has positions in Tesla. Additionally, The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company.
Furthermore, The Motley Fool has a disclosure policy.