TSLA

This time, I thought it would be more appropriate to outline the major nodes for further scenarios surrounding Tesla before the quarterly report is released.

First, what is important for me right now is that the market crowd is obviously more positive about Elon Musk's business than the pool of Wall Street experts. This can be seen from a very quick purchase session for Tesla shares at prices like $320+, which were only available for a short time on July 22, while the price before the closing bell was $1.50 above the next round figure of $330. In other words, when wiseasses are still talking about Elon’s political exposure and doubting if Tesla can or cannot overcome future credit revenue losses due to The One Big Beautiful Bill Act adoption, most investors believe in robotaxi rollout for a much higher payback. Volatility is all here in the market, and a wise investor is using volatility chances to take dips for Big Long bets.

Thus, it’s enough for the bulls that Musk's rhetoric and that of his inner circle do not fail completely to keep the crowd horny, and then the numbers can do the rest. It could be easy for Tesla to deliver beating analyst estimates as the latter are very low now at $0.28 for earnings per share (EPS) vs $0.42 in the same period of 2024. It's surely possible to be weaker than feared, but it's more difficult than be at least a bit stronger!

That’s why my tactic lies in simply keeping my cherished buy trades in Tesla open before the fateful night, especially since technically Tesla recently bounced off its 52-week average around $300 per share. My basic scenario for Tesla is now to climb, if not jump, in one impressive leap to break through the binding ties of the $350 resistance area.

My point is that we may not have time to gasp before we see a 7% to 10% increase in the after-hours price on Wednesday, if Musk's verbal hypnosis factors about robo-taxis development and affordable electric vehicles plus smaller-than-expected year-on-year decline and some quarter-to-quarter rise in supply numbers may coincide. I agree to hold positions for this basic scenario as a more reasonable option of what to do, compared to buying later at a two-digit percentage higher. However, if the second scenario occurs, with some deeper dive to 300+ or even $300- again, I would add more Tesla shares to my tech portfolio. This may happen if the numbers really disappoint tonight but it won't be easy to break the backs of the bulls with scepticism, except to bend our horns a little.

Musk tweeted yesterday that he's going to live and even sleep in the Tesla office 7 days a week when his kids are not at home. He can't blow his main business. I take the similar most horny approach to Google stocks as well, as Google will also report tonight. I believe that cloud division's revenue and ad-related search segment’s contribution with Gemini's AI capacity and the extent of its wow-effect on sales are the three key drivers to define the pace of the further Google rally to $220 per share at least.