Tesla (NASDAQ:TSLA) stock will be in focus this week as the electric vehicle giant reports its financial results. The shares have fallen nearly 25% to around $380 after peaking at almost $500 in December last year.

Tesla to Expand its German Production

Tesla’s business is doing relatively well even as its stock remains in a bear market. Its recently released delivery numbers showed that it returned to growth in the second quarter. 

The company delivered 480,126 vehicles in the quarter after producing 451,758 vehicles. Deliveries increased significantly from the 358,023 vehicles it delivered in the first quarter of the year.

Now, a new report suggests that the company is boosting its production in its Gruenheide factory in Germany. It now plans to make as many as 7,500 vehicles a week, higher than what it was making last year. 

Tesla uses its German plant to supply vehicles in Germany and 30 other markets in Europe. It hopes that having a local presence will help it to beat Chinese vehicle companies like Nio (NYSE:NIO) and BYD that are aiming to grow their market share there.

A good example of this competition is Xpeng, a Chinese EV company valued at over $12 billion. In a recent statement, the company said that it was close to building a Model Y killer. It recently made a simultaneous launch of LO3 in China and in Europe.

These developments explain why analysts are expecting Tesla’s earnings to show some growth. Benzinga data shows that the company’s revenue likely jumped by 17.2% in the second quarter to $26.36 billion. This annual revenue growth is important because its vehicles had an EV tax credit last year. 

Analysts predict that its annual revenue will jump by 10% this year, followed by 14.7% next year to $120 billion.

Tesla Stock Has Settled at a Crucial Support Level

Tesla stock chart | Source: TradingView

Technically, Tesla stock has settled at an important support level ahead of its quarterly results. It has remained above the ascending trendline that links its lowest level in April 2025, April and June this year. It is common for stocks to bounce back after hitting such an important support level.

The risk, however, is that Tesla has moved below the 200-day moving average. It has also formed a descending channel. As a result, losing the ascending trendline will likely confirm the bearish breakout and point to more downside. 

Analysts are largely optimistic that the TSLA stock will rebound. The consensus target for the stock is $407, higher than the current $380. In a recent note, Morgan Stanley (NYSE:MS) placed its target on TSLA at $417.

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