10-QPeriod: Q1 FY2017

Tesla, Inc. Quarterly Report for Q1 Ended Mar 31, 2017

Filed May 10, 2017For Securities:TSLA

Summary

Tesla, Inc. (TSLA) reported its first quarter 2017 results, demonstrating significant year-over-year revenue growth driven by strong performance in its automotive segment and the integration of SolarCity. Total revenues surged by 135% to $2.7 billion, with automotive revenue alone increasing by 121% to $2.48 billion, attributed to higher Model S and X deliveries and the introduction of new features like Autopilot 2.0. Despite this top-line growth, Tesla continued to incur operating losses, with a net loss of $397.2 million for the quarter, a widening from the previous year's $282.3 million loss. This was primarily due to increased operating expenses, including substantial investments in research and development and selling, general, and administrative costs, partly driven by the recent acquisition of SolarCity and preparations for the Model 3 launch. The company ended the quarter with a healthy cash position of $4.0 billion, supported by strong financing activities, including a significant increase in debt and equity financing.

Financial Highlights

52 data points
Beta

Revenue

$2.70B

24.8% Gross Margin

Net Income

-$330.28M

-12.2% Net Margin

EPS (Diluted)

$-0.14

Total Assets

$25.05B

Cash & Equivalents

$4.01B

Free Cash Flow

-$622.43M

Financial Statements
Beta
Revenue$2.70B
Cost of Revenue$2.03B
Gross Profit$667.95M
R&D Expenses$322.04M
SG&A Expenses$603.46M
Operating Expenses$925.50M
Operating Income-$257.55M
Interest Expense$99.35M
Net Income-$330.28M
EPS (Basic)$-0.14
EPS (Diluted)$-0.14
Shares Outstanding (Basic)2.43B
Shares Outstanding (Diluted)2.43B

Key Highlights

  • 1Total revenues grew by an impressive 135% year-over-year to $2.7 billion, driven by substantial growth in both automotive and energy segments.
  • 2Automotive revenue surged 121% to $2.48 billion, propelled by a 128% increase in vehicle deliveries (Model S and X) and higher average selling prices.
  • 3The company incurred a net loss of $397.2 million, an increase from the prior year's $282.3 million loss, reflecting higher operating expenses.
  • 4Operating expenses rose significantly, with R&D up 76% and SG&A up 90%, largely due to the integration of SolarCity and investments in Model 3 development.
  • 5Cash and cash equivalents increased to $4.01 billion at the end of the quarter, up from $3.39 billion at the end of the previous year.
  • 6Financing activities provided substantial cash inflow, primarily from the issuance of convertible notes and a public offering of common stock.

Frequently Asked Questions

Tesla reported a significant increase in total revenues, which grew by 135% year-over-year to $2.7 billion. The automotive segment was the primary driver, with revenues up 121% to $2.48 billion, due to higher vehicle deliveries and the inclusion of new features like Autopilot 2.0. The energy generation and storage segment also saw substantial growth, increasing by 841% to $213.9 million, primarily due to the acquisition of SolarCity.

No, Tesla reported a net loss of $397.2 million for the first quarter of 2017, which is an increase compared to the $282.3 million net loss in the same period last year. This widening loss was attributed to increased operating expenses, including R&D and SG&A, which were impacted by the ongoing integration of SolarCity and significant investments related to the upcoming Model 3 launch.

Tesla's cash and cash equivalents increased from $3.39 billion at the end of 2016 to $4.01 billion at the end of Q1 2017. This increase was primarily driven by strong net cash provided by financing activities, which included proceeds from the issuance of convertible notes and a public offering of common stock.

Operating expenses saw a substantial rise, with R&D expenses increasing by 76% and SG&A expenses by 90%. These increases were largely due to the inclusion of SolarCity's operational costs following the acquisition, along with significant investments in research and development for the Model 3, scaling production facilities, and expanding the global sales and service infrastructure.