Tesla Inc. (TSLA) – Get report Founder and CEO Elon Musk could steer his company toward the S&P 500 later this year, and justify one of the most electrifying moves in the history of the American market, if the clean energy automaker can post a quarterly profit after the close of business on Wednesday.
Tesla will remove a significant hurdle to listing in the benchmark if it is able to post a second-quarter GAAP profit after the close of business on Wednesday, a figure that would mark four consecutive quarters in black numbers for Palo Alto, California. revolutionary soldier.
The company took a giant step toward that goal last week when it reported stronger-than-expected quarterly deliveries of 90,650 units, a figure that beat street forecasts even amid a six-week shutdown of the manufacturer’s production facilities. Freemont, California auto sales and a sharp 34% decline in total auto sales in the United States.
However, analysts are divided on whether Tesla can make the jump this fall, with second-quarter estimates ranging from an adjusted loss of $ 2.53 per share to a profit of $ 1.79 per share. Revenue forecasts cover a range of between $ 2.8 billion and $ 6.2 billion.
Tesla shares were marked 1.8% higher in pre-market deals on Wednesday to indicate an opening bell price of $ 1,597.00 each, a move that would expand annual stock profit beyond 280% .
Tesla, which took over the mantle of the world’s most valuable automaker last month despite its modest contribution (less than 1%) to total global sales, will sell a maximum of 500.00 cars this year. Ford Motor Co. (F) – Get report, which has a market value that is ten times lower, will likely change 2.2 million vehicles and Toyota Motor Co. (TM) – Get report, with a market value of $ 205 billion, will sell 10.7 million.
Tesla, in fact, added almost double the value of Ford and General Motors (GM) – Get report Combined with its own stock price this month alone, with a 50% gain that has added about $ 90 billion to its market capitalization.
Credit Suisse analysts suggest that the inclusion of the S&P 500 could trigger further activity in Tesla’s shares, with ‘significant’ incremental purchases of around 18 million shares, about 10% of its outstanding total, from passive investors and Fund managers who follow the benchmark.
However, the bank noted that S&P Dow Jones committee members may have a hard time accommodating most of Tesla: With a market cap of $ 290 billion, adding it to the index presents a challenge not seen from Facebook Inc. (full board) – Get report It was included in the index in 2013 with a market capitalization of $ 120 billion. The committee is set to rebalance the index on September 21, but typically updates investors on new entrants a week four before the restart.
If Tesla enters the S&P 500, its market value would be just below that of Procter & Gamble (PG) – Get report and Mastercard (MOTHER) – Get report, placing it right outside the top ten of the benchmark, which comprises about 1.15% of the $ 25.24 trillion total market capitalization of the benchmark.
Musk, who cofounded Tesla in 2004 with an investment of $ 6.5 million, will remain in line for another annual windfall, even if S&P Dow Jones deferred his decision until 2021.
Tesla shares have averaged a market capitalization of $ 150 billion during the first six months of the year, triggering the acquisition of stock options granted to Musk in 2018, the right to buy 1.69 million shares at $ 350.02 each, which are now worth $ 2.1 billion.
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