Tesla reported a loss of $2.90 per share for Q1, a massive miss from expectations of 69 cents.

Tesla Q1 2019 Earnings Highlights

  • GAAP operating loss of $522M, GAAP net loss of $702M, including $188M of non-recurring charges
  • Cash and cash equivalents of $2.2B at Q1-end
  • Model 3 gross margin ~20% in Q1
  • Produced roughly 63,000 Model 3 vehicles in Q1, which was approximately 3% more than the previous quarter
  • Deliveries of Model S and Model X declined to 12,100 vehicles in Q1 compared to our two-year run rate of roughly 25,000 units per quarter.
  • In Q1, we recognized $15 million in revenue from ZEV credit sales compared to less than $1 million in Q4 2018.
  • Approximately 2% of our vehicle deliveries were subject to lease accounting.
  • Model S and Model X gross margin declined in Q1 predominantly due to reduced volume and pricing actions.
  • Energy generation and storage revenue in Q1 decreased by 13% over Q4 2018.
  • GAAP gross margin of the Energy generation and storage business in Q1 dropped to 2.4% compared to Q4 primarily due to reduced volume in the solar retrofit business.
  • Service and Other revenue in Q1 decreased by 7% compared to Q4. This was predominantly due to decreased used car sales which move directionally with total new vehicle deliveries.
  • Service and Other gross margin in Q4 declined sequentially to negative 39%.
  • Our total GAAP operating expenses increased to $1.09 billion in Q1, which was 6% more than in Q4 2018.
  • Gains attributable to non-controlling interests impacted our income statement negatively by $35 million in Q1.
  • Interest and Other expenses were $123 million in Q1 compared to $182 million in Q4.
  • Non-cash items accounted for $66 million of total interest expense.
  • Our cash position decreased from $3.7 billion to $2.2 billion mainly due to a $920 million repayment of convertible notes, of which $188 million negatively impacted operating cash flow.
  • Gigafactory Shanghai will be almost fully funded through local debt. Thus far, we have secured an approximately $522 million (as at March 31, 2019) credit line from local banks.
  • Our capital expenditures were $280 million in Q1 including early investments for Gigafactory Shanghai.
  • We reaffirm our prior guidance of 360,000 to 400,000 vehicle deliveries in 2019, representing an increase of approximately 45% to 65% compared to 2018.
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