Summary
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.
Financial Highlights
53 data points| Revenue | $21.46B |
| Cost of Revenue | $17.42B |
| Gross Profit | $4.04B |
| R&D Expenses | $1.46B |
| SG&A Expenses | $2.83B |
| Operating Expenses | $4.43B |
| Operating Income | -$388.00M |
| Interest Expense | $663.00M |
| Net Income | -$976.00M |
| EPS (Basic) | $-0.38 |
| EPS (Diluted) | $-0.38 |
| Shares Outstanding (Basic) | 2.56B |
| Shares Outstanding (Diluted) | 2.56B |
Key Highlights
- 1Tesla achieved a significant production ramp-up for the Model 3 in 2018, delivering 245,506 vehicles, a 138% increase year-over-year.
- 2The company reported substantial growth in its energy storage segment, more than tripling deployments in 2018 compared to 2017.
- 3Plans for Gigafactory Shanghai were underway, with the goal of commencing Model 3 production there by the end of 2019 to serve the Chinese market.
- 4Total revenues for 2018 reached $21.46 billion, an 83% increase compared to 2017, driven primarily by automotive sales.
- 5The 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.
- 6Tesla highlighted ongoing risks related to production scaling, supply chain management, and the successful ramp-up of new facilities like Gigafactory Shanghai.
- 7Gross 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%.