The Nasdaq Composite (NASDAQINDEX:^IXIC) gained ground at midday on Tuesday, rebounding from a drop of nearly 2% on Monday. Investors seemed to feel more comfortable with the level of uncertainty facing markets right now, especially with key events like the 2020 U.S. presidential election looming ahead. Just after 12:30 p.m. EDT, the Nasdaq was up nearly 1%.

Earnings season continues, and today, it was Logitech's (NASDAQ:LOGI) turn to blow its numbers out of the park with an amazing performance. Tesla (NASDAQ:TSLA) hopes to match those gains when it releases its latest financials Wednesday afternoon, but investors seem less comfortable about the prospects for the electric-vehicle maker's stock.

A logical choice

Logitech shares soared higher by 17%. The tech-peripherals specialist released fiscal second-quarter results that reflected a huge surge in demand from its customers.

Logitech logo in lowercase letters.

Image source: Logitech.

Logitech saw a 75% rise in sales, compared to the year-earlier quarter, moving above $1 billion for the first time in its history. Adjusted earnings per share nearly quadrupled year over year, with operating cash flow coming close to tripling.

CEO Bracken Darrell pointed to increased remote work as a driving force behind the sales gains. In addition, Logitech's line of products for video games plays well into the esports trend, which has picked up steam during the COVID-19 pandemic.

Logitech boosted its full-year fiscal 2021 guidance, as well, expecting revenue to climb 35% to 40%. As long as people need to work from home, Logitech can count on selling them the products they need in order to get their work done.

Hovering over the accelerator

Meanwhile, Tesla saw its stock drop almost 2%. The company has gotten a lot of attention from investors lately, especially because it's reporting quarterly earnings on Wednesday, and many are viewing its performance as a signal of whether the overseers of the S&P 500 Index will name Tesla as a constituent.

Shareholders have already gotten one of the most important reads on the quarter, because Tesla is quick to report production and delivery numbers as soon as possible after each three-month period ends. Earlier in October, Tesla said that it had delivered more than 139,000 vehicles during the third quarter, reaching a new record high. That was up by more than half from the number of units it got to customers during the second quarter of 2020.

That's not likely to result in an equivalent rise in revenue, because the company is selling a larger mix of its more affordable Model 3 vehicles. However, current analyst expectations call for Tesla's top line to grow by more than 30%, and adjusted earnings per share could rise more than 50% from year-ago levels.

Interestingly, Tesla is crimping its own profit margins with its anticipated growth trajectory. At its Battery Day event in September, Tesla announced a desire to get the price of its vehicles down to just $25,000. That's ambitious and will require significant advances in battery technology, but it isn't the first time Tesla has tried to move forward quickly.

Investors should watch Tesla to see whether its profit growth looks sustainable and stems from its actual vehicle manufacturing, rather than from regulatory credit sales. An invitation to the S&P 500 could certainly bolster the stock's prospects.