Summary
Tesla's Q3 2015 10-Q filing reveals a company in a significant growth and investment phase, marked by increasing revenues but also a widening net loss. Revenues saw a year-over-year increase driven by Model S deliveries, with the recent launch of Model X contributing to order growth. However, gross margins have contracted due to product mix, manufacturing inefficiencies from the Model X ramp, and lower ZEV credits, partially offset by growth in lease revenue and cost savings. The company continues to make substantial investments in R&D and SG&A to support future products like Model 3 and expand its global footprint, including the Gigafactory. Significant capital expenditures for production capacity expansion and infrastructure development are ongoing, funded in part by a recent public offering of common stock and existing credit facilities, though operating activities consumed substantial cash during the period.
Financial Highlights
49 data points| Revenue | $936.79M |
| Cost of Revenue | $705.29M |
| Gross Profit | $231.50M |
| R&D Expenses | $178.79M |
| SG&A Expenses | $236.37M |
| Operating Expenses | $415.16M |
| Operating Income | -$183.66M |
| Interest Expense | $29.31M |
| Net Income | -$229.86M |
| EPS (Basic) | $-0.12 |
| EPS (Diluted) | $-0.12 |
| Shares Outstanding (Basic) | 1.94B |
| Shares Outstanding (Diluted) | 1.94B |
Key Highlights
- 1Total revenues increased to $936.8 million for Q3 2015 from $851.8 million in Q3 2014, primarily driven by Model S deliveries.
- 2Gross margin decreased to 24.7% in Q3 2015 from 29.6% in Q3 2014, impacted by production ramp inefficiencies for Model X and product mix.
- 3Net loss widened to $229.9 million in Q3 2015 from $74.7 million in Q3 2014.
- 4Research and Development (R&D) expenses increased significantly to $178.8 million in Q3 2015 from $135.9 million in Q3 2014, reflecting investment in Model X, Autopilot, and Model 3 development.
- 5Selling, General, and Administrative (SG&A) expenses rose to $236.4 million in Q3 2015 from $155.1 million in Q3 2014, due to expanded sales and service footprint and global business growth.
- 6The company's cash and cash equivalents decreased from $1.9 billion at the end of 2014 to $1.4 billion at the end of Q3 2015, with operating activities consuming $494.7 million in cash during the first nine months of 2015.
- 7Capital expenditures for the first nine months of 2015 were $1.26 billion, primarily for production capacity, Gigafactory construction, and infrastructure development.