Tesla (TSLA), traditionally considered part of the Magnificent Seven tech stocks, is set to report earnings after the bell on Wednesday. Investors are watching closely to see if the earnings report can provide a positive catalyst for the stock, following the muted market response to both the company's third quarter delivery figures and recent robotaxi event.

Freedom Capital Markets chief global strategist Jay Woods joins to share his outlook on the electric vehicle maker's prospects ahead of the results.

Woods acknowledges one positive technical indicator for Tesla: the stock has broken from its long-term downtrend that began at its November 2021 high. However, he notes that in 2024, Tesla remains the worst-performing stock among major tech names, leading him to state, "I don't even consider it one of the Mag 7."

"It has been trading on hopes and dreams, and now investors want a show-me stock," Woods explains, suggesting that companies like Netflix (NFLX) or Eli Lilly (LLY) would be better suited for the Magnificent Seven. Regarding today's upcoming earnings report, Woods characterizes the potential market reaction as a "coin flip."

"It's one to watch. Bring your popcorn," Woods tells Yahoo Finance while cautioning, "...I do not have a position in it, nor do I recommend one going into the earnings."

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This post was written by Angel Smith