Tesla, Inc.'s declining fundamentals and unsustainable valuation signal risk. Click for key TSLA challenges and why a Strong Sell rating targets $130–$140.

As Tesla is set to announce Q2 results on Wednesday, a herd of ETFs with high concentrations in the EV titan is already revving up.

Tesla stock came under pressure Thursday after it posted an earnings and revenue miss in the second quarter and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker.

With its Q1 earnings report, Tesla ( NASDAQ: TSLA) attributed weak deliveries to production disruption associated with the Model Y changeover. For Q2, Tesla ( TSLA) already announced that it delivered 384,122 vehicles during the quarter and produced 410,244 vehicles..

Tesla's Q2 deliveries fell year-over-year. Will future guidance and a focus on AI and Robotaxi growth be enough to offset Q2 results?