This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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.
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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.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
