Dan Ives at Wedbush expects Tesla Inc. TSLA,
to report a profit when it reports second quarter earnings on Wednesday, which ultimately results in the company joining the S&P 500 SPX index,
The inclusion of the S&P 500 “is already considered a fait accompli among the bulls,” Ives said in a note Monday. “While street numbers are all over the map and looking for red ink this quarter, we are modeling profitability with the 90k delivery number” and continued cost reduction “moving Musk & Co. away from red ink.” , said. In addition to profitability, investors will look to hear more about China sales, a prospect for Model 3 demand in the second half of the year, any clues to Battery Day, Ives said. The analyst kept his rating on Tesla shares at the equivalent of hold. “This quarter is another step forward in Tesla’s history as Musk & Co. must deliver to meet the euphoric expectations of the street.” Tesla reports after the bell with an analyst call scheduled for 5:30 pm EST. The FactSet consensus calls for an adjusted loss of 14 cents per share on sales of $ 5.15 billion.
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