01—Abstract
Summary
Summary of the 10-K filed February 19, 2019. Cited figures are marked; the original filing is the authoritative source.
Tesla, Inc.'s 2018 10-K filing (filed Feb 2019) reveals a company aggressively scaling its automotive operations, particularly with the Model 3, which saw significant production ramp-up throughout the year.
The company reported substantial increases in vehicle deliveries, with a stated goal of reaching 7,000 Model 3 vehicles per week by the end of 2019 and an annualized output exceeding 500,000 units between late 2019 and mid-2020, including contributions from the new Gigafactory Shanghai. Beyond vehicles, Tesla continued to expand its energy generation and storage segment, with significant growth in energy storage deployments. However, the company also highlighted ongoing risks related to production scaling, supply chain dependencies, and the capital-intensive nature of its operations, with ongoing capital expenditures projected for manufacturing capacity expansion and infrastructure development.
02—Key points
Key Highlights
- Tesla achieved a significant production ramp-up for the Model 3 in 2018, delivering 245,506 vehicles, a 138% increase year-over-year.
- The company reported substantial growth in its energy storage segment, more than tripling deployments in 2018 compared to 2017.
- Plans for Gigafactory Shanghai were underway, with the goal of commencing Model 3 production there by the end of 2019 to serve the Chinese market.
- Total revenues for 2018 reached $21.46 billion, an 83% increase compared to 2017, driven primarily by automotive sales.
- The company continued to invest heavily in R&D and capital expenditures, projecting $2.5 billion in capital expenditures for 2019, largely for increasing vehicle production capacity and expanding infrastructure.
- Tesla highlighted ongoing risks related to production scaling, supply chain management, and the successful ramp-up of new facilities like Gigafactory Shanghai.
- Gross margin for the automotive segment remained stable at 23% in 2018, but the energy generation and storage segment saw a decrease in gross margin from 22% to 12%.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2018, Tesla, Inc. lost $0.05.
- Revenue$21.46B100.0%
- Cost of revenue−$17.42B81.2%
- Gross profit$4.04B18.8%
- Operating costs−$4.43B20.6%
- Operating income−$388.0M1.8%
- Interest, other & tax−$588.0M2.7%
- Net income−$976.0M4.5%
04—Financials
Financial Highlights
Figures from 10-KFY2018filed February 19, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $21.46B$11.76B | +82.5% |
| Cost of Revenue | $17.42B$9.54B | +82.7% |
| Gross Profit | $4.04B$2.22B | +81.8% |
| R&D Expenses | $1.46B$1.38B | +6.0% |
| SG&A Expenses | $2.83B$2.48B | +14.5% |
| Operating Expenses | $4.43B$3.85B | +14.9% |
| Operating Income | -$388.00M-$1.63B | +76.2% |
| Interest Expense | $663.00M$471.00M | +40.8% |
| Net Income | -$976.00M-$1.96B | +50.3% |
| EPS (Basic) | $-0.38$-0.79 | +51.8% |
| EPS (Diluted) | $-0.38$-0.79 | +51.8% |
| Shares Outstanding (Basic) | 2.56B2.49B | +2.8% |
| Shares Outstanding (Diluted) | 2.56B2.49B | +2.8% |
05—Questions
Frequently Asked Questions
What was Tesla's financial performance like in 2018?
In 2018, Tesla reported total revenues of $21.46 billion, a significant increase of 83% from 2017, primarily driven by a substantial ramp-up in automotive sales, particularly the Model 3. While gross profit increased, the company reported a net loss attributable to common stockholders of $976.1 million for the year. Despite the net loss, operating cash flow turned positive, reaching $2.1 billion for the year.
What are Tesla's key growth drivers and future plans based on this filing?
Tesla's primary growth driver is the continued scaling of its automotive production, especially the Model 3, with ambitious targets for weekly and annual production volumes. The company is also focused on expanding its energy generation and storage business, with plans to double energy storage deployments in 2019. Key strategic initiatives include increasing production capacity at existing facilities, building Gigafactory Shanghai for Model 3 production, and enhancing its global retail, service, and Supercharger network infrastructure.
What are the major risks and challenges Tesla faces according to this report?
Tesla identified several key risks, including potential delays or complications in the design, manufacture, and launch of new vehicles and products, such as Model Y and Solar Roof. The company also highlighted its dependence on suppliers, the challenges of scaling manufacturing to high volumes cost-effectively, and the competitive automotive market. Additionally, risks related to international expansion, regulatory changes, and the successful management of growth across all its business segments were emphasized.
06—Continue