Wedbush analyst Daniel Ives reiterated a Neutral rating and $1,250.00 price target on Tesla (NASDAQ: TSLA) into Q2 earnings on Wednesday after the close. Ives said 2Q profitability could lead to S&P 500 inclusion. He said investors' focus will be on 2Q profitability, China delivery trajectory, model 3 demand outlook for 2H, and hints around Battery Day announcements.

The analyst stated "Anticipation is high among investors for Tesla's June earnings this Wednesday after the bell as profitability this quarter will result in S&P 500 inclusion and is already considered a fait accompli among the bulls. While Street numbers are all over the map and looking for red ink this quarter, we are modeling profitability with the 90k delivery number and continued GM efficiency/cost cutting getting Musk & Co. away from the red ink. Taking a step back, Tesla facing a dark macro backdrop and COVID storm clouds has executed flawlessly this quarter posting 90k deliveries and crushing Street expectations in Aaron Judge-like home run fashion. The key focus for investors heading into this print will be: 1) 2Q profitability, 2) China delivery trajectory, 3) Model 3 demand outlook for 2H, and 4) any hints around Battery Day announcements slated for late September. In terms of the annual delivery forecast we note that while the Street reduced its annual delivery forecast to roughly 400k from its original 550k pre COVID, we now believe hitting 450k for the year could be in the cards."

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Shares of Tesla closed at $1500.84 yesterday.