Hey everybody Rob Maower here and today I wanted to spend some time going through the mechanics of a possible S&P 500 inclusion and some of the some of the possible S&P 500 inclusion

and some of the implications behind that potential inclusion.

I want to focus on that for this episode, but obviously a lot going on with

Tesla newswise, so we'll cover some of that towards the end. All right, so as we've a lot

will cover some of that towards the end.

All right, so as we've talked about a lot,

Tesla will become eligible for the S&P 500

if they report even a dollar of gap profit

in the upcoming Q2 earnings report on July 22nd.

That fulfills the requirement of the last four quarters in summation being profitable

as well as the most recent quarter being profitable.

With Tesla's delivery report for Q2 of over 90,000 vehicles,

some of the Elon Musk leaked emails,

and most recently the release of Tesla Short Shorts.

Expectations for Tesla to report

that second quarter profit have risen.

That matches my expectations as well.

But even if Tesla doesn't, they should easily post a third quarter profit, which would again

make them eligible for the S&P 500.

The reason this is important is because the S&P 500 is indexed or benchmarked by multiple trillions of dollars of assets under management and those funds that are tracking the S&P 500 need to purchase new shares of companies that are added to the index because if they don't,

well, their performance would then deviate from the index and they wouldn't be doing a very good job of

tracking it then in that case. That same logic indicates that these funds don't already have

...