TheStreet and RealMoney tech columnist Eric Jhonsa is live blogging Tesla’s (TSLA) - Get Report second-quarter earnings report on Wednesday, July 22, and all eyes will be on whether the electric vehicle giant can report a profit for the fourth consecutive quarter, making it eligible for inclusion in the S&P 500.
Tesla’s inclusion in the S&P 500 would force many mutual funds to own the stock, something that some investors appear to be banking on as the stock has risen close to 280% this year and 50% this month alone. Tesla also reported that it delivered a stronger-than-expected 90,650 vehicles in the second quarter, lending support to company bulls.
To prepare for Tesla earnings, follow Tesla Daily on TheStreet as the innovative auto company reports earnings after the bell Wednesday.
Among the key things to watch for on Wednesday are the impact of recently-announced price cuts and what they indicate about demand; plans for the latest “Gigfactories” to produce more vehicles and their resulting impact on free cash flow; the state of demand for Tesla vehicles in China; and the company’s important full-year outlook for deliveries.
Prior to the pandemic, Tesla told investors it would easily delivery 500,000 vehicles this year but has not revised that figure yet, despite disruptions to demand and the ability of its factories to remain open brought about by the pandemic. In its previous quarter, Tesla said it would “revisit” its full-year guidance in its second-quarter release so this will be a closely watched piece of information.
For the second quarter, analysts polled by FactSet are expecting Tesla to report a non-GAAP EPS of breakeven on $5.15 billion in revenue.
We’ll also be reporting on and analyzing Tesla’s earnings call with analysts, scheduled for 5:30 p.m. E.T.