Hey everybody Rob Maower here and today we are previewing

Tesla's second quarter earnings report coming up this Wednesday, July 22nd, after market

close.

We'll go through some of the things to watch for, what the market is currently expecting, as well

as my forecasts.

As we've talked a lot about the financials this quarter will be particularly closely watched because if

Tesla is able to post a gap profit for the second quarter, that will make them eligible for

S&P 500 inclusion.

With about 4.6 trillion dollars in assets under management tracking the S&P 500 index. If Tesla becomes eligible

and then is eventually added to the S&P 500, that could lead to about 26 million shares or more

needing to be purchased by those tracking funds to make sure

their equal weight on Tesla's stock.

Tesla's float share count is estimated to be right around 147 million shares, so taking

26 million of those and having them be bought by index funds, effectively taking them out of the float,

potentially significantly reduces the number of shares available for others to trade.

If enough of the 147 million shares of float don't want to sell at today's prices,

well that will lead to a price appreciation.

So all eyes this quarter are focused on that gap net income line.

With that being said, I think it makes sense to start off here going through the financials.

Normally at this point I go through the fact set consensus estimates because generally the media

uses that to report and that often shapes the headlines and sometimes the reaction on earnings.

But at least as of today the facts that numbers don't seem to be very updated.

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