Summary
Tesla, Inc. (TSLA) filed its Form 10-Q for the quarterly period ending September 29, 2019. The report details a mixed financial performance, with total revenues decreasing year-over-year for the quarter but increasing for the nine-month period. Automotive sales revenue saw a year-over-year decline in the third quarter, impacted by pricing adjustments and a higher proportion of Model 3 leases, though Model 3 deliveries increased for the nine-month period. The energy generation and storage segment revenue experienced a slight increase for the quarter but a decrease for the nine-month period. Despite revenue pressures in automotive sales, the company reported improved gross margins in energy generation and storage and a decrease in operating expenses as a percentage of revenue, indicating efforts towards cost efficiency. Financially, Tesla generated positive net cash from operating activities for the nine months ended September 30, 2019, an improvement from the prior year. The company also made significant progress on its Gigafactory Shanghai project and continued investing in capital expenditures for global manufacturing expansion. A notable event was the acquisition of Maxwell Technologies, Inc., which contributed to an increase in goodwill. The company also disclosed an ongoing SEC investigation related to Elon Musk's 2018 'going private' tweet and settlement terms, alongside various other legal proceedings.
Financial Highlights
53 data points| Revenue | $6.30B |
| Cost of Revenue | $5.11B |
| Gross Profit | $1.19B |
| R&D Expenses | $334.00M |
| SG&A Expenses | $596.00M |
| Operating Expenses | $930.00M |
| Operating Income | $261.00M |
| Interest Expense | $185.00M |
| Net Income | $143.00M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 2.69B |
| Shares Outstanding (Diluted) | 2.77B |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2019, increased by 21% to $17.2 billion, compared to $14.2 billion in the prior year. However, quarterly revenues decreased by 8% to $6.3 billion compared to $6.8 billion in the same period of 2018.
- 2Automotive sales revenue decreased by 13% to $5.1 billion in Q3 2019 compared to $5.9 billion in Q3 2018, attributed to lower Model S and X deliveries and lower average selling prices due to prior price adjustments.
- 3The company generated positive net cash from operating activities of $980 million for the nine months ended September 30, 2019, up from $863 million in the same period of 2018.
- 4Gross margin for the total automotive segment decreased from 26% in Q3 2018 to 23% in Q3 2019, primarily due to lower average selling prices for Model S and X.
- 5Research and development expenses decreased by 5% to $334 million in Q3 2019, and by 10% to $998 million for the nine-month period, reflecting cost efficiency initiatives.
- 6Selling, general, and administrative expenses decreased by 18% to $596 million in Q3 2019 and by 10% to $1.9 billion for the nine-month period, also driven by cost efficiencies and headcount reductions.
- 7Tesla acquired Maxwell Technologies, Inc. for $207 million in May 2019, adding $79 million in goodwill and $105 million in intangible assets.