Summary
Tesla, Inc. (TSLA) reported a significant increase in revenue for the third quarter of 2018, driven primarily by the substantial ramp-up in Model 3 deliveries. Total revenues surged by 129% year-over-year to $6.82 billion. The automotive segment saw a remarkable 158% increase in revenue, largely attributed to Model 3 production stabilization and higher average selling prices. The adoption of the new revenue recognition standard (ASC 606) also contributed positively to revenue figures. Despite top-line growth, the company reported a net loss for the nine months ended September 30, 2018, though the net loss attributable to common stockholders narrowed significantly in the third quarter compared to the prior year's quarter. The company continues to invest heavily in production capacity, particularly for Model 3, and expanding its infrastructure, which contributed to a significant increase in interest expense and overall operating expenses. The company ended the quarter with improved liquidity, but ongoing capital expenditures for future growth, including Gigafactory 3 in China, remain a key focus.
Financial Highlights
51 data points| Revenue | $6.82B |
| Cost of Revenue | $5.30B |
| Gross Profit | $1.52B |
| R&D Expenses | $351.00M |
| SG&A Expenses | $730.00M |
| Operating Expenses | $1.11B |
| Operating Income | $416.00M |
| Interest Expense | $175.00M |
| Net Income | $311.00M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.12 |
| Shares Outstanding (Basic) | 2.56B |
| Shares Outstanding (Diluted) | 2.67B |
Key Highlights
- 1Total revenues increased 129% year-over-year to $6.82 billion for Q3 2018.
- 2Automotive sales revenue grew 183% year-over-year to $5.88 billion, driven by the Model 3 production ramp.
- 3Adoption of ASC 606 (new revenue standard) positively impacted automotive sales revenue by $479 million in Q3 2018.
- 4Gross margin for the total automotive segment improved from 18% in Q3 2017 to 26% in Q3 2018.
- 5Net income attributable to common stockholders was positive $311.5 million in Q3 2018, a significant improvement from a net loss of $619.4 million in Q3 2017.
- 6Cash and cash equivalents stood at $2.97 billion as of September 30, 2018.
- 7The company has identified restructuring actions in the energy generation and storage segment, resulting in $129.6 million in related expenses for the nine months ended September 30, 2018.