The end of the second quarter is at hand, and all signs point to Tesla (NASDAQ: TSLA) carrying out an intense delivery blitz once again. With the possibility of a possible inclusion in the S&P 500, Tesla appears to be in the midst of what could well be its most important end-of-quarter initiative.
The second quarter has been brutal for the auto industry as a whole, largely thanks to the coronavirus outbreak. With the pandemic that caused worldwide blockades, companies like Tesla were forced to close their production facilities to ensure the safety of their workers. Tesla, meanwhile, was able to resume operations in May, and by that time, the company only had just under two months before the end of the quarter.
Fortunately for Tesla, Gigafactory Shanghai has been increasing its Model 3 production in China, and deliveries of the all-electric sedan have been in an expansion phase recently. Powered by new government incentives, the Model 3 Made in China may very well provide a healthy boost to Tesla’s second-quarter delivery numbers. Chinese publications have also noted that Tesla is launching additional incentives to encourage customers to receive their vehicle orders this month, such as the free 1500 km Supercharging.
In the United States, Tesla is all about the Model Y. Deliveries of the all-electric crossover have resumed since operations resumed in May, and if Elon Musk’s recent tweets are an indication, it looks like everything is set to go. a delivery. bombardment once again. Recently, for example, Musk issued an apology to customers due to the company’s changing delivery dates. The CEO also expressed special thanks to Tesla’s truck and rail partners for “figuratively and literally” going further.
As noted in a report by The Wall Street JournalTesla has a great chance of being included in the S&P 500 if it makes even a small profit this quarter. To qualify for the S&P 500, a business has to post a cumulative profit for its previous four quarters, and its most recent quarter also shows a profit. Tesla, meanwhile, has reported a net profit in the last three quarters, with the company posting $ 143 million in the third quarter of 2019, $ 105 million in the fourth quarter of 2019 and $ 16 million in the first quarter of 2020. .
With this in mind, the company would only have to post a small profit to qualify for the S&P 500. Otherwise, the company would have to wait for its third-quarter results this year to qualify for eligibility on the popular stock index. Either way, it seems that the electric car maker, one of the shortest companies on the market, is a surprising distance from another major milestone. And that, considering the presence of a pandemic, is quite respectable in its own right.
Disclosure: I do not own TSLA shares and I have no plans to start any position within 72 hours.