01—Abstract
Summary
Summary of the 10-K filed February 13, 2020. Cited figures are marked; the original filing is the authoritative source.
For the fiscal year ended December 31, 2019, Tesla, Inc. (TSLA) reported significant growth in total revenues, reaching $24.6 billiona, 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 millionb, 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.
02—Key points
Key Highlights
- Total revenues increased by 15% to $24.6 billion in 2019, with the automotive segment being the primary driver.
- Achieved record vehicle deliveries (367,656) and production (365,232) in 2019.
- Commenced Model 3 production at Gigafactory Shanghai and prepared for Model Y production at Fremont, signaling global manufacturing expansion.
- Energy storage deployments in 2019 exceeded all prior years combined, with the launch of the Megapack product.
- Research and Development expenses decreased by 8% year-over-year, while SG&A expenses decreased by 7%, reflecting cost optimization efforts.
- The 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.
- Despite a net loss of $862 million, the company's cash flow from operating activities improved, totaling $2.4 billion in 2019.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2019, Tesla, Inc. lost $0.04.
- Revenue$24.58B100.0%
- Cost of revenue−$20.51B83.4%
- Gross profit$4.07B16.6%
- Operating costs−$4.14B16.8%
- Operating income−$69.0M0.3%
- Interest, other & tax−$793.0M3.2%
- Net income−$862.0M3.5%
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 13, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $24.58B$21.46B | +14.5% |
| Cost of Revenue | $20.51B$17.42B | +17.7% |
| Gross Profit | $4.07B$4.04B | +0.7% |
| R&D Expenses | $1.34B$1.46B | −8.0% |
| SG&A Expenses | $2.65B$2.83B | −6.7% |
| Operating Expenses | $4.14B$4.43B | −6.6% |
| Operating Income | -$69.00M-$388.00M | +82.2% |
| Interest Expense | $685.00M$663.00M | +3.3% |
| Net Income | -$862.00M-$976.00M | +11.7% |
| EPS (Basic) | $-0.33$-0.38 | +14.0% |
| EPS (Diluted) | $-0.33$-0.38 | +14.0% |
| Shares Outstanding (Basic) | 2.66B2.56B | +4.0% |
| Shares Outstanding (Diluted) | 2.66B2.56B | +4.0% |
05—Questions
Frequently Asked Questions
What was Tesla's revenue performance in 2019?
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.
How is Tesla managing its manufacturing expansion and production?
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.
What is Tesla's financial health and cash flow situation as of the end of 2019?
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.
What were the key product highlights for Tesla in 2019?
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.
06—Continue