Why Tesla Stock Popped Ahead of Earnings Day Tomorrow

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Tesla (NASDAQ: TSLA) shares have been a bit of a roller-coaster ride this year. After dropping more than 40% and bottoming as low as nearly $140 per share in April, Tesla stock has recovered to hold a year-to-date gain heading into its second-quarter earnings report. Tesla reports its full second-quarter update tomorrow after the market closes, and investors will be listening closely. The anticipation has Tesla shares jumping to start this week's trading. As of 3:15 p.m. ET, the stock had surged by 5%. Some of that also has to do with election year politics, and what that could mean for the electric vehicle (EV) leader. Elon Musk is hedging Tesla's bets Tesla's gain of nearly 80% since April 22 came as investors anticipate an update on its full self-driving software, and after surprisingly strong second-quarter vehicle deliveries. The company delivered almost 444,000 EVs in the quarter while also drawing down vehicle inventories. The result could be a more profitable quarterly period than many analysts initially expected. And CEO Elon Musk is also making news with his public comments on U.S. politics. After recently endorsing former President Donald Trump, Musk doubled down on his support this weekend. Trump has responded with a much warmer opinion on EVs in general. At a rally over the weekend, the formerly anti-EV president said, "I love Elon Musk, I'm constantly talking about electric cars. ... I'm totally for them." While the election is far from decided, it seems Musk is working to position the EV sector, and his company in particular, for any potential outcome. While a future Trump presidency might mean less government support and subsidies, Tesla is the one profitable EV maker that could tolerate reduced tax credits and other assistance for EV buyers. But more imminent is what Tesla will say about EV profits, energy storage deployments, and self-driving technology tomorrow. Some investors are anticipating good news and jumping into the stock ahead of that report. Should you invest $1,000 in Tesla right now? Before you buy stock in Tesla, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tesla wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $722,626!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Story continues See the 10 stocks » *Stock Advisor returns as of July 22, 2024 Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Why Tesla Stock Popped Ahead of Earnings Day Tomorrow was originally published by The Motley Fool