After TSLA Earnings, Should I Buy Tesla Stock (Nasdaq: TSLA)

TSLA earningsThe TSLA earnings report will be released after the bell on Wednesday. Consensus estimates call for an earnings per share (EPS) loss of $0.60 on revenue of $1.17 billion.

That EPS loss would be a big drop from last year's earnings of $0.11. However, that revenue estimate is 36% higher than last year's Q2 total.

Tesla Motors Inc. (Nasdaq: TSLA) has already announced it delivered 11,507 vehicles in Q2. That's up 52% from last year and is a record high for the company. Expect to hear that number early in today's conference call.

Shareholders will also be looking for an update on the Tesla Model X. The Model X will be the first SUV from Tesla. The launch of the vehicle has already been delayed previously, so an update on the official release is expected. Company officials have already said the vehicle will have a 90-kilowatt-hour battery and falcon-wing door.

As we prepare for a large Tesla earnings loss, readers are asking us if this is a good time to buy into Tesla stock.

TSLA stock has climbed 19.5% in 2015, but it has fallen 5% in the last month. Tesla shares opened today at $263.58.

As we've stressed at Money Morning before, TSLA stock is not a perfect fit for every investor - and is not a buy for risk-averse investors. The stock is volatile and can see wide price swings on breaking news. Investors should expect a similar swing in the upcoming days as the TSLA earnings report is released.

But for investors who can buy and hold the stock for several years, the long-term potential is undeniable.

"I believe Tesla is one of the best long-term investments an investor can make at the moment," Money Morning Chief Investment Strategist Keith Fitz-Gerald said. "If there is ever a case to buy a few shares and tuck them away, this is it."

Here are two reasons why we're so bullish on Tesla stock ...

Why We're Bullish Ahead of TSLA Earnings

[epom key="ddec3ef33420ef7c9964a4695c349764" redirect="" sourceid="" imported="false"]

One of the biggest reasons we love Tesla stock's long-term potential is the company's new push into the home battery market.

Earlier this year, Tesla announced a new line of home units built using the same lithium-ion batteries used in Tesla cars. Different models store either 7 kWh or 10 kWh of solar power. It's a major shift for Tesla, making it more than just a car company.

"I think Musk is the most innovative CEO on the planet and that he sees value others don't yet recognize," Fitz-Gerald said. "Cars, batteries, innovative business models - nobody knows where it will go but ultimately if you're along for the ride, I think it'd be very hard to go wrong over time."

Money Morning Global Energy Strategist Dr. Kent Moors has spoken of the home battery's importance throughout 2015.

"In everyday use, the unit is expected to allow homeowners to store solar-generated power for use during high-cost periods, giving them the flexibility to use the conventional grid for cheaper, off-peak electricity," Moors said in February.

Another reason we're bullish ahead of TSLA earnings is the Tesla Gigafactory.

Currently under construction in Nevada, the Gigafactory will be the world's largest lithium-ion battery plant upon completion.

The factory is expected to take a total of $5 billion to complete. By the time it reaches full production by 2020, it should produce enough batteries to power 500,000 vehicles annually.

"The Gigafactory is expected to have a dramatic effect on the energy storage market, helping to bring battery costs down by as much as half by 2020," Moors said.

The Bottom Line: Expect volatility from the Tesla stock price following TSLA earnings. This stock is always volatile when any news breaks. But for investors willing to take on some risk and weather short-term price swings, TSLA stock is one of the best long-term stocks on the market. The home batteries and Gigafactory are two of the biggest reasons why.

Follow us on Twitter @KyleAndersonMM and @moneymorning.

Like us on Facebook: Money Morning.

Profit Alert: Since Money Morning Executive Editor Bill Patalon launched his Private Briefing program just a few short years ago, he's recommended 192 stocks that have either doubled or tripled in value. The service has completely revolutionized the way people invest. Keep reading to find out more about his extensive research and premium stock picks...