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10-QPeriod: Q1 FY2019

Tesla, Inc. Quarterly Report for Q1 Ended Mar 31, 2019

Filed April 29, 2019For Securities:TSLA

Summary

Tesla, Inc. reported its first-quarter 2019 financial results, showing a notable increase in total revenues, up 33% year-over-year to $4.54 billion. This growth was primarily driven by a 37% surge in automotive sales, fueled by higher Model 3 deliveries, alongside a substantial 87% increase in services and other revenue. However, the energy generation and storage segment experienced a 21% decline in revenue, largely due to a decrease in commercial projects. The company posted a net loss of $667.6 million for the quarter, an improvement from the $784.6 million loss in the same period last year, indicating progress in managing operational costs. Total operating expenses increased slightly, impacted by restructuring costs of $43.5 million recognized in the first quarter of 2019. Cash flow from operations remained negative, with a net cash used of $639.6 million, reflecting increased inventory buildup and working capital needs associated with Model 3 production. Despite this, Tesla maintained a solid cash position with $2.20 billion in cash and cash equivalents as of March 31, 2019. The company also announced plans for significant capital expenditures in 2019, projecting between $2.0 to $2.5 billion, mainly for Gigafactory Shanghai, Model Y, Tesla Semi, and expansion of its service and charging networks.

Financial Statements
Beta

Key Highlights

  • 1Total revenues increased by 33% to $4.54 billion, driven by a 37% rise in automotive sales and an 87% increase in services and other revenue.
  • 2Net loss for the quarter was $667.6 million, an improvement from $784.6 million in Q1 2018, suggesting cost management progress.
  • 3Automotive sales revenue benefited from a significant ramp in Model 3 deliveries, although Model S and X saw a decline.
  • 4The energy generation and storage segment revenue decreased by 21%, primarily due to lower commercial project revenues.
  • 5Operating expenses saw an increase, including $43.5 million in restructuring costs for efficiency improvements.
  • 6Net cash used in operating activities increased to $639.6 million, influenced by inventory buildup and working capital needs.
  • 7The company ended the quarter with $2.20 billion in cash and cash equivalents and projected 2019 capital expenditures of $2.0 to $2.5 billion for growth initiatives.

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