Will Tesla Post a Q2 Profit (and gain S&P 500 inclusion)?

TL;DR

Tesla's Q2 2020 deliveries will reveal the company's market share and demand relative to other automakers, and a potential profit may signal a game-changing outcome. S&P 500 inclusion and leaked emails hint at positive results.

Transcript

Hey, I’m Steven and this is Solving The Money Problem. If you’re new, welcome. If you’re not, welcome back. Today’s video is a quick one aimed at Tesla investors, shareholders, fanboys, fangirls, shorts and curious observers. If you own Tesla stock, stick around. I’ll post an in-depth Q2 earnings preview in a week or so when we have delivery number... Read More

Key Insights

• 💁 Tesla's Q2 2020 deliveries will reveal significant information about underlying demand and market share gains.
• 💌 Elon Musk's tweets and leaked emails hint at positive Q2 results and potential profitability.
• 🍉 S&P 500 inclusion from a Q2 profit could prompt a long-term shift in sentiment, boosting Tesla's reputation and stock price.
• 🧑‍⚕️ The health crisis in 2020 offers crucial insights into Tesla's future as it has tested demand and revealed the company's resilience.
• 💁 Tesla's market performance in Q2 2020 will provide investors with vital information to evaluate its long-term viability.
• 🧔 The absence of Tesla bears in the finance media may indicate a potential shift in sentiment towards Tesla's success.

Questions & Answers

Q: How does Tesla's order backlog reflect its high demand?

Tesla consistently sells every vehicle it produces and has reported a growing order backlog in consecutive quarterly earnings reports, proving strong demand.

Q: How will Q2 2020 deliveries provide insights into relative demand and market share?

If Tesla's deliveries decline less than other automakers in the quarter, it would signify market share gains. This data point is crucial in understanding Tesla's competitiveness in the market.

Q: What hints and messages has Elon Musk conveyed through his tweets and leaked emails?

Elon Musk's tweets, such as "Chairs are underappreciated," phonetically hint at share appreciation. Leaked emails, referring to a "good outcome" and intensified execution efforts, suggest positive results, potential profitability, and S&P 500 inclusion.

Q: How does S&P 500 inclusion impact Tesla's stock price?

If Tesla achieves a profit of $1 or more in Q2 2020, it becomes eligible for immediate inclusion in the S&P 500. This would require index-tracking funds to purchase Tesla stocks, leading to significant upward pressure on the stock price.

Summary & Key Takeaways

• Tesla has historically faced production constraints due to high demand, proven by its growing order backlog, which remains a mystery beyond what they can meet.

• Q2 2020 provides an opportunity to assess underlying demand as Tesla production may exceed demand, indicating market share gains if other automakers have a larger decline in deliveries.

• Elon Musk's tweets and leaked emails suggest future hints, and a Q2 profit could signify Tesla's long-term viability and potential S&P 500 inclusion, leading to a surge in stock price.