10-KPeriod: FY2019

Tesla, Inc. Annual Report, Year Ended Dec 31, 2019

Filed February 13, 2020For Securities:TSLA

Summary

For the fiscal year ended December 31, 2019, Tesla, Inc. (TSLA) reported significant growth in total revenues, reaching $24.6 billion, an increase of 15% from the previous year, driven primarily by its automotive segment. The company highlighted record vehicle deliveries and production, with the commencement of Model 3 production in Shanghai and preparations for Model Y production in Fremont, signaling progress in scaling global manufacturing capabilities. Despite a net loss attributable to common stockholders of $862 million, Tesla demonstrated improved operational efficiency, with total operating expenses decreasing as a percentage of revenue. The company's energy generation and storage segment saw a slight revenue decline but continued to deploy significant energy storage capacity and introduce new products like Megapack. Tesla's strategic focus remains on expanding its production capacity across three continents, evidenced by the ongoing development of Gigafactory Shanghai and the planned Gigafactory Berlin. The company also emphasized advancements in its Autopilot and Full Self-Driving (FSD) capabilities. While facing ongoing risks related to production ramp-ups, supply chain management, and increasing competition, Tesla continues to invest heavily in R&D and manufacturing infrastructure to support its mission of accelerating the world's transition to sustainable energy.

Financial Highlights

53 data points
Beta

Revenue

$24.58B

16.6% Gross Margin

Net Income

-$862.00M

-3.5% Net Margin

EPS (Diluted)

$-0.33

Total Assets

$34.31B

Cash & Equivalents

$6.27B

Free Cash Flow

$1.08B

Financial Statements
Beta
Revenue$24.58B
Cost of Revenue$20.51B
Gross Profit$4.07B
R&D Expenses$1.34B
SG&A Expenses$2.65B
Operating Expenses$4.14B
Operating Income-$69.00M
Interest Expense$685.00M
Net Income-$862.00M
EPS (Basic)$-0.33
EPS (Diluted)$-0.33
Shares Outstanding (Basic)2.66B
Shares Outstanding (Diluted)2.66B

Key Highlights

  • 1Total revenues increased by 15% to $24.6 billion in 2019, with the automotive segment being the primary driver.
  • 2Achieved record vehicle deliveries (367,656) and production (365,232) in 2019.
  • 3Commenced Model 3 production at Gigafactory Shanghai and prepared for Model Y production at Fremont, signaling global manufacturing expansion.
  • 4Energy storage deployments in 2019 exceeded all prior years combined, with the launch of the Megapack product.
  • 5Research and Development expenses decreased by 8% year-over-year, while SG&A expenses decreased by 7%, reflecting cost optimization efforts.
  • 6The company continued to invest significantly in capital expenditures, planning $2.5 billion to $3.5 billion annually for 2020-2022 for factory expansion and product development.
  • 7Despite a net loss of $862 million, the company's cash flow from operating activities improved, totaling $2.4 billion in 2019.

Frequently Asked Questions

Tesla's total revenues grew by 15% to $24.6 billion in 2019, primarily driven by a 13% increase in automotive sales revenue. The automotive segment revenue reached $20.8 billion, while the energy generation and storage segment revenue was $1.5 billion.

Tesla is focusing on scaling production across three continents. Key developments in 2019 included the start of Model 3 production at Gigafactory Shanghai and preparations for Model Y production at the Fremont Factory. The company also selected Berlin, Germany, as the site for its next factory, demonstrating a commitment to increasing global manufacturing capacity.

As of December 31, 2019, Tesla had $6.3 billion in cash and cash equivalents. The company generated $2.4 billion in net cash from operating activities during 2019, an increase from $2.1 billion in 2018. Capital expenditures for 2019 were $1.3 billion, primarily for Gigafactory Shanghai and Model Y preparations. Tesla expects continued capital expenditures of $2.5 billion to $3.5 billion annually from 2020 to 2022.

Key product achievements in 2019 included record vehicle deliveries and production, the launch of the third-generation Solar Roof, and the introduction of Megapack, the company's largest utility-scale energy storage product. Tesla also continued to enhance its Autopilot and Full Self-Driving (FSD) features, including the release of a new FSD computer and Smart Summon feature.