(Updated - July 22, 2020 6:42 AM EDT)

Credit Suisse analyst Dan Levy reiterated a Neutral rating and $1,400.00 price target on Tesla (NASDAQ: TSLA) into earnings tonight with a clear focus on GAAP EPS. The analyst believes the stock will trade up on positive GAAP EPS, despite lofty expectations, as it would be eligible to be included in the S&P 500.

The analyst stated "With Tesla eligible for S&P inclusion if it posts positive GAAP net income in 2Q, the primary metric in focus will be GAAP EPS. We forecast 2Q GAAP EPS of 8c vs. consensus -42c. While the stock is clearly embedding lofty expectations, we nevertheless expect the stock to trade up if Tesla posts positive GAAP EPS, which is not reflected in sell-side consensus".

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $1586.99 yesterday.