Analysts say Tesla’s inclusion in the S&P 500 is a bargain for the bull

Dan Ives et Wasbash expects Tesla Inc. TSLA,
The company eventually joins the S&P 500 Index SPX to report a profit when it reports second-quarter earnings on Wednesday,
+ 0.33%.
The S&P 500 inclusion “is already considered a very high accomplishment among bulls,” Ives said in a note on Monday. “While street numbers are all over the map and looking for red ink this quarter, we are modeling profitability with 90k delivery numbers” and ongoing cost cuts “Musk & Co is getting away with red ink ,” They said. In addition to profitability, investors need to hear more about China sales, an outlook for Model 3 demand in the second half of the year, any indication around Battery Day, Ives said. The analyst placed his rating on par with the hold on Tesla shares. “This quarter is another step forward in Tesla’s story as Kasturi & Co. must match the buoyant Street expectations baked into the stock,” he said. Tesla reports the bell after a call with analysts scheduled for 5:30 pm Eastern. The FactSet consensus calls for an adjusted loss of 14 cents a share on sales of $ 5.15 billion.