Summary
Tesla's third-quarter 2017 10-Q filing reveals a significant increase in revenues driven by both automotive and energy generation and storage segments. Total revenues grew by 30% year-over-year, reaching $2.98 billion. The automotive segment saw a 17% revenue increase, with Model S and X deliveries reaching record highs and the initial rollout of Model 3 commencing. The energy generation and storage segment experienced a substantial 1261% revenue jump, largely due to the integration of SolarCity's operations. However, the company reported a substantial net loss of $671 million for the quarter, a considerable increase from the prior year's net income, primarily attributable to increased operating expenses, particularly in research and development and selling, general, and administrative costs, which were driven by Model 3 production ramp-up and expansion efforts. The company's balance sheet reflects substantial growth in assets, with total assets reaching $28.1 billion. This growth is supported by significant investments in property, plant, and equipment, especially related to Gigafactory 1 and Model 3 production. Cash and cash equivalents remained robust at $3.53 billion. Despite the revenue growth and asset expansion, the company's cash flow from operations turned negative, showing a use of $570.5 million for the nine months ended September 30, 2017, compared to a positive inflow in the prior year, highlighting the substantial investments being made for future growth. Significant financing activities, including debt issuance, were undertaken to support these capital expenditures.
Financial Highlights
52 data points| Revenue | $2.98B |
| Cost of Revenue | $2.54B |
| Gross Profit | $449.14M |
| R&D Expenses | $331.62M |
| SG&A Expenses | $653.00M |
| Operating Expenses | $984.62M |
| Operating Income | -$535.48M |
| Interest Expense | $117.11M |
| Net Income | -$619.38M |
| EPS (Basic) | $-0.25 |
| EPS (Diluted) | $-0.25 |
| Shares Outstanding (Basic) | 2.51B |
| Shares Outstanding (Diluted) | 2.51B |
Key Highlights
- 1Total revenues increased by 30% year-over-year to $2.98 billion, driven by strong performance in both automotive and energy segments.
- 2The automotive segment revenue grew 17%, with record deliveries for Model S and X and the commencement of Model 3 deliveries.
- 3Energy generation and storage revenue surged by 1261% due to the inclusion of SolarCity's operations and increased sales of energy storage products.
- 4Despite revenue growth, Tesla reported a net loss of $671.2 million for the quarter, compared to a net income of $21.9 million in the prior year.
- 5Operating expenses increased significantly, with R&D expenses up 55% and SG&A expenses up 94%, primarily due to Model 3 production ramp-up and overall business expansion.
- 6Cash flow from operations turned negative for the nine months ended September 30, 2017, showing a use of $570.5 million, compared to a positive $324.4 million in the prior year.
- 7Total assets grew to $28.1 billion, reflecting substantial investments in property, plant, and equipment, particularly for Gigafactory 1 and Model 3 production.