$383M increase in Tesla cash and cash equivalents balance to $5.3B
$371M operating cash flow less capex (free cash flow)
Tesla Has Profit in Third Quarter
$261M GAAP operating income; 4.1% operating margin
$143M GAAP net income; $342M non-GAAP net income ex-SBC
22.8% GAAP Automotive Gross Margin
Results versus analysts’ expectations:
Adjust earnings per share of $1.86 vs. expected losses of 42 cents per share
Revenue of $6.3 billion, vs. expected $6.33 billion, according to Refinitiv consensus estimates
Operating cashflow was at $756 million which was $156 million above street estimates.
Automotive gross margin was at 22.8% instead of expectations of 19%
Gigafactory Shanghai ahead of schedule, trial production has started
Model Y ahead of schedule, production expected by summer 2020
Record vehicle production of 96k and deliveries of 97k
Record storage deployment of 477 MWh and 48% solar growth QoQ
Tesla Had a Profitable Third Quarter
Model Y equipment installation is underway in advance of the planned launch next year. They are moving faster than initially planned, using learnings and efficiencies gained from our Gigafactory Shanghai factory design. Capex per unit of capacity is forecasted to be about 50% lower than their current Model 3 production system in the United States.
They are already producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai. They have cleared initial milestones toward their manufacturing license and are working towards finalizing the license and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai.
China is by far the largest market for mid-sized premium sedans. With Model 3 priced on par with gasoline powered mid-sized sedans (even before gas savings and other benefits), they believe China could become the biggest market for Model 3.
They are in the final stages of our site selection process. The European Gigafactory is expected to produce both Model 3 and Model Y.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.