Tesla's Shifts Gears With A Solid Recovery Of 27% In July As Q2 Earnings Approach

• Tesla is scheduled to announce its second-quarter earnings this Tuesday after market close, following a challenging first quarter.
• Tesla's stock has recently shown signs of recovery, increasing 27% in July after a 10% rise in June.

Tesla Inc TSLA is set to release its second-quarter earnings after market close this Tuesday. This follows a tough first quarter for Tesla, with its largest revenue decline since 2012.

Even though vehicle deliveries exceeded expectations, they still fell short compared to the previous year, with earnings per share (EPS) at $0.45 versus the expected $0.51. For Q2, analysts estimate an EPS of $0.60, reflecting cautious optimism.

Investor interest is high due to several strategic developments at Tesla, especially the progress of the "CyberCab" robotaxi initiative, which represents a big step toward fully autonomous vehicles.

Another key point for the upcoming earnings call is Tesla's automotive gross margins. Recent decisions to cut prices and reduce workforce have raised questions about their long-term impact on profitability.

Tesla's stock has experienced significant ups and downs this year. After a steep 44% drop from January to April, the stock rebounded, climbing 27% in July following a 10% increase in June.

This recovery sets the stage for a key moment if Q2 earnings are strong. While positive results haven't always led to a bullish market response, a solid Q2 could push the stock above the 2023 high of around $300.

After the closing bell on Monday, July 22, the stock closed at $251.51, trading up by 5.27%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.