EX-99.1 2 tsla-ex991_22.htm EX-99.1 tsla-ex991_22.htm

 

Exhibit 99.1

 

 

Tesla Second Quarter 2019 Update

 

    Cash and cash equivalents of $5.0B; Operating cash flow less capex of $614M

 

    GAAP operating loss of $167M, GAAP net loss of $408M, including $117M of restructuring and other charges

 

    Auto gross margin at ~19% in spite of reductions in vehicle ASP and lower regulatory credit revenue

 

    On track to launch Gigafactory Shanghai by end of 2019 and Model Y by fall of 2020.

 

In the second quarter of 2019, we achieved record deliveries of 95,356 vehicles and record production of 87,048 vehicles, surpassing our previous quarterly records of ~91,000 deliveries and ~86,600 units produced in Q4 of 2018. This is an important milestone as it represents rapid progress in managing global logistics and delivery operations at higher volumes.  

 

As a result of this growth and operational improvements, we generated $614 million of free cash flow (operating cash flow less capex) in Q2. Combined with our public offering of equity and convertible bonds (net proceeds of $2.4 billion), we ended the quarter with $5.0 billion of cash and cash equivalents, the highest level in Tesla’s history.  This level of liquidity puts us in a comfortable position as we prepare to launch Model 3 production in China and Model Y production in the US. As a result of our strong deliveries and continued progress on cost efficiencies, our GAAP net loss declined significantly compared to Q1.  

 

 

Autopilot and Full Self-Driving Features: As safety has always been a priority for us, Model 3 received the highest ever ratings in the Safety Assist category of Euro NCAP’s new and more stringent testing protocols. New active safety features built on our Autopilot and Full Self-Driving (FSD) hardware and software suite contributed to this achievement. Development of new features continued in Q2 as we launched Navigate on Autopilot in new regions including Europe and China. We are making progress on our next major update: Enhanced Summon, which is currently in our early access program. We are making progress towards stopping at stop signs and traffic lights. This feature is currently operating in “shadow mode” in the fleet, which compares our software algorithm to real-world driver behavior across tens of millions of instances around the world. Our new FSD computer, which is ~21x faster than our previous HW2.5 computer, has been in production since Q2.

 

Model 3: In Q2, Model 3 deliveries reached an all-time record of 77,634. Not only was Model 3 once again the best-selling premium vehicle in the US, outselling all of its gas-powered equivalents combined, this product also gained traction in other markets. In Europe, Model 3 is approaching sales levels of established premium competitors. As we stated previously, more than 60% of Model 3 trade-ins are non-premium brands, indicating a larger total addressable market for this product than initially expected.  Now that all current variants of Model 3 are available across North America, Europe and Asia, we are gaining insight into preferred customer trim mix.  

 

 

During the quarter, a majority of orders continued to be for a long-range battery option and the Model 3 average selling price (ASP) was stable at approximately $50,000. At the same time, manufacturing costs continued to decline.  

The production rate of Model 3 continued to improve gradually throughout the quarter, breaking a monthly record in May and then again in June. All manufacturing equipment in Fremont has demonstrated capability of a 7,000 Model 3 vehicles per week run rate, which we continue to work to increase. We aim to produce 10,000 total vehicles of all models per week by the end of 2019.

Model S/X: Model S and Model X production continues to run on a single shift schedule, and we produced over 14,500 vehicles in Q2. Our deliveries increased sequentially to 17,722 as we continue to prioritize inventory reduction (working capital management). As a result, our total new car inventory levels have fallen to just 18 days of sales (including vehicles in transit, on ships and company


 

 

owned vehicles), compared to the industry’s typical US inventory level of ~70 days of sales.

 

Gigafactory Shanghai continues to take shape, and in Q2 we started to move machinery into the facility for the first phase of production there. This will be a simplified, more cost-effective version of our Model 3 line with capacity of 150,000 units per year – the second generation of the Model 3 production process. Just like in the US, the Model 3 base price of RMB 328,000 is consistent with its gas-powered competitors, even before gas savings and incentives. Given Chinese customers bought well over a half million mid-sized premium sedans last year, this market poses a strong long-term opportunity for Tesla. We are looking forward to starting production in China by the end of this year.  Depending on the timing of the Gigafactory Shanghai ramp, we continue to target production of over 500,000 vehicles globally in the 12-month period ending June 30, 2020.

 

Model Y: Preparations for Model Y production in Fremont began in Q2. Due to a significant overlap of components between Model 3 and Model Y, we are able to leverage existing manufacturing designs in the development of the Model Y production facilities. Additionally, we are making progress managing Model Y cost with only a minimal cost premium expected over Model 3. Due to the large market size for SUVs, as well as higher ASPs, we believe Model Y will be a more profitable product than the Model 3.

 

Infrastructure: As our fleet continues to grow, our service and Supercharger capacity continues to expand. In Q2, we added 101 vehicles to our Mobile Service fleet and opened 25 new store and service locations. While our customer fleet size has doubled in the past 12 months, our service losses remained stable year-on-year and service wait times have improved considerably. Supercharger capacity has grown to roughly 1,600 charging locations worldwide. In addition to the number of charging locations, we are also increasing the rate of throughput of vehicles. We expect the average charging session at our powerful V3 Superchargers will drop to around 15 minutes, which will effectively double the overall throughput rate per stall compared to our V2 Superchargers, easily keeping pace with our fleet growth.

 

Energy: Powerwall and Powerpack deployment grew by 81% in the second quarter to a record 415 MWh. Powerwalls are now installed at more than 50,000 sites. Additional cell supply combined with our new module line designed by Tesla Grohmann enabled a step change in energy storage production. Solar retrofit deployments declined sequentially to 29 MW. We are in the process of improving many aspects of this business to increase deployments.

 

OUTLOOK

 

This quarter, we are simplifying our approach to guidance. We are most focused on expanding our manufacturing footprint in new regions, launching new products and continuing to improve the customer experience, while generating and using cash sustainably.

 

Local production and improved utilization of existing factories is essential to be cost competitive in each region. We remain on track to launch local production of the Model 3 in China by the end of the year and Model Y in Fremont by fall of 2020. We are also accelerating our European Gigafactory efforts and are hoping to finalize a location choice in the coming quarters.

 

We are working to increase our deliveries sequentially and annually, with some expected fluctuations from seasonality. This is consistent with our previous guidance of 360,000 to 400,000 vehicle deliveries this year.

 

Additionally, we expect positive quarterly free cash flow, with possible temporary exceptions, particularly around the launch and ramp of new products. We believe our business has grown to the point of being self-funding.

 

We continue to aim for positive GAAP net income in Q3 and the following quarters, although continuous volume growth, capacity expansion and cash generation will remain the main focus.

 

Our 2019 capex is expected to be about $1.5 to $2.0 billion, a reduction from prior guidance. We continue to find opportunities to improve capital efficiency and shift cash outflows to future periods. This estimate includes the development of our main projects, on the timelines referenced, and to expand our Supercharger and service networks.

 

 

 

 

Elon Musk

 

Zachary Kirkhorn

 



 

 

Q2 2019 RESULTS

 

Revenue & Gross Margin

 

 

Three Months Ended

 

 

Change

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

 

 

 

 

 

 

2019

 

 

2019

 

 

2018

 

 

QoQ

 

YoY

 

Automotive revenue ($000)

$

5,376,389

 

 

$

3,723,861

 

 

$

3,357,681

 

 

 

44

%

 

60

%

    of which regulatory credits

 

111,219

 

 

 

215,981

 

 

 

54,011

 

 

 

-49

%

 

106

%

Automotive gross margin

 

18.9

%

 

 

20.2

%

 

 

20.6

%

 

 

-125

bp

 

-168

bp

 

 

Starting this quarter, we are combining disclosure of both ZEV and non-ZEV credits into a single line item.

Excluding regulatory credit revenue, automotive gross margin improved by ~200bp (compared to a decrease of 125bp on a GAAP basis). This was in spite of a reduction in ASP as the Model 3 Standard Range Plus was fully introduced in all markets. We continue to make progress reducing the cost of the product, including through volume growth (fixed cost absorption), lowering material cost, reduction of labor hours per vehicle, and reduction of logistics costs.

Model S and Model X gross margin were impacted by pricing actions on vehicles with the prior powertrain version. Inventory of these vehicles has decreased materially as we enter Q3.

 

 

Three Months Ended

 

 

Change

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

 

 

 

 

 

 

2019

 

 

2019

 

 

2018

 

 

QoQ

 

YoY

 

Energy generation and storage revenue ($000)

$

368,208

 

 

$

324,661

 

 

$

374,408

 

 

 

13

%

 

-2

%

Energy generation and storage gross margin

 

11.6

%

 

 

2.4

%

 

 

11.8

%

 

 

920

bp

 

-20

bp

 

 

GAAP gross margin of the Energy business in Q2 improved sequentially to ~12% as the reduction in solar retrofit deployments was more than offset by the improved profitability of our energy storage business and seasonality in the solar lease/PPA business.

 

 

Other Highlights

 

Our total GAAP operating expenses remained relatively flat at $1.1 billion in Q2 in spite of 50% quarter-over-quarter growth in vehicle deliveries and the inclusion of $117 million in restructuring and other charges.

Service and Other revenue in Q2 increased predominantly due to stronger used car sales and service revenue growth.

Service and Other gross margin in Q2 improved to negative 23% due to a lower impact of one-time items as well as reduced losses in the service business. Most importantly, our total service-related cost continues to decline compared to a year ago, in spite of almost doubling the size of our customer vehicle fleet.

Interest and Other expenses increased to $202 million in Q2 compared to $123 million in Q1. This increase was mainly caused by currency movements due to a weakening USD and higher interest expense due to our recent convertible debt issuance.

Gains attributable to non-controlling interests impacted our income statement negatively by $19 million in Q2  

 

 

Cash Flow and Liquidity

 

Our cash position increased to $5.0 billion, due to $2.4 billion in net proceeds from our May 2019 equity and convertible debt offerings, and $614 million of free cash flow.

Gigafactory Shanghai will be almost fully funded through local debt. Thus far, we have secured a $510 million credit line from local banks, which should be largely sufficient for the first phase of the factory.

Customer deposits declined to $631 million in Q2. This includes an increase in our order backlog offset by a sequential reduction in customer pre-payments (i.e., customers paying more than the minimum deposit) as well as reservation cancellations as order generation has shifted nearly entirely to non-reservation holders.

Our capital expenditures were $250 million in Q2, including Gigafactory Shanghai, charging infrastructure and early investments in the Model Y production line.

 

 

WEBCAST INFORMATION

Tesla will provide a live webcast of its second quarter 2019 financial results conference call beginning at 3:30 p.m. PT on July 24, 2019, at ir.tesla.com. This webcast will also be available for replay for approximately one year thereafter.  

 


 

 

NON-GAAP FINANCIAL INFORMATION

 

Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis to supplement our consolidated financial results. Our non-GAAP financial measures include non-GAAP gross margin, non-GAAP net income (loss) attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders on a per share basis, and operating cash flows plus change in collateralized lease borrowing. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance as well as comparisons to the operating results of other companies. Management also believes that presentation of the non-GAAP financial measures provides useful information to our investors regarding our financial condition and results of operations because it allows investors greater transparency to the information used by Tesla management in its financial and operational decision-making so that investors can see through the eyes of Tesla management regarding important financial metrics that Tesla management uses to run the business as well as allows investors to better understand Tesla’s performance. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided below.  

 

 

FORWARD-LOOKING STATEMENTS

 

Certain statements in letter, including statements in the “Outlook” section; statements relating to the development, production, production rates, features and timing of existing and future Tesla products and technologies such as Model 3, Model Y, Autopilot and full self-driving features and Supercharger; statements regarding growth in the number of service center and Supercharger locations and in other service and repair capabilities; statements regarding growth of our energy business and the means to achieve such growth; statements regarding growing market opportunities for Tesla products and the catalysts for that growth; statements regarding product demand, volume, production, delivery, and market share; statements regarding revenue, cash availability and generation, cash flow, gross margin, product pricing, spending, capital expenditure and profitability targets; statements regarding productivity improvements, cost reductions and capacity expansion plans, such as for customer deliveries, logistics and vehicle servicing; statements regarding the Tesla Factory, Gigafactory Shanghai and timing of a future Gigafactory in Europe, including cost, project financing and timing, plans and output expectations, including those related to the launch of Model 3 and Model Y production; and statements regarding our investment in and the impact of changes to our customer delivery infrastructure, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the risk of delays in the manufacture, production, delivery and/or completion of our vehicles and energy products and product features, including Model 3 and our autonomous driving features; our ability to grow our production, sales, delivery and servicing capabilities, and manage future growth effectively, especially internationally; consumers’ willingness to adopt electric vehicles generally and our ability to design and grow simultaneous and separate market acceptance of and demand for our vehicles, including future vehicle models such as Model Y; the ability of suppliers to meet quality and part delivery expectations at increasing volumes, especially with respect to our high-volume models; our ability to sustain and further grow our ramp of battery cell, energy product and product component production at Gigafactory 1; our ability to bring online and ramp Gigafactory Shanghai in accordance with our plans; any failures by Tesla products to perform as expected or if product recalls occur; our ability to continue to reduce or control manufacturing and other costs; competition in the automotive and energy product markets generally and the alternative fuel vehicle market and the premium vehicle markets in particular; our ability to execute on our evolving strategy for product sales, service, charging and other customer infrastructure; the unavailability, reduction or elimination of government and economic incentives for electric vehicles and energy products; potential difficulties in performing and realizing potential benefits under definitive agreements for our existing and future manufacturing facilities; our ability to attract and retain key employees and qualified personnel; our ability to maintain the security of our information and product systems; our compliance with various regulations and laws applicable to our operations and products, which may evolve from time to time; risks relating to our indebtedness and financing strategies; and adverse foreign exchange movements. More information on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in our quarterly report on Form 10-Q filed with the SEC on April 29, 2019. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

 

 

Investor Relations Contact:

Martin Viecha

Investor Relations

ir@tesla.com

 

Press Contact:

Keely Sulprizio

Communications

press@tesla.com

 



 

Tesla, Inc.  

Summary of Key Metrics

(Unaudited)

(In thousands, except metrics and per share data)

 

Three Months Ended

 

 

Change

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

 

 

 

 

 

 

2019

 

 

2019

 

 

2018

 

 

QoQ

 

YoY

 

Model S/X production

 

14,517

 

 

 

14,163

 

 

 

24,761

 

 

 

2

%

 

-41

%

Model 3 production

 

72,531

 

 

 

62,975

 

 

 

28,578

 

 

 

15

%

 

154

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Model S/X deliveries

 

17,722

 

 

 

12,091

 

 

 

22,319

 

 

 

47

%

 

-21

%

of which subject to lease accounting

 

1,820

 

 

 

1,363

 

 

 

2,354

 

 

 

34

%

 

-23

%

Model 3 deliveries

 

77,634

 

 

 

50,928

 

 

 

18,449

 

 

 

52

%

 

321

%

of which subject to lease accounting

 

4,322

 

 

 

 

 

 

 

 

N/A

 

N/A

 

Global vehicle inventory (days of sales) (1)

 

18

 

 

 

30

 

 

 

55

 

 

 

-40

%

 

-67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Solar deployed (MW)

 

29

 

 

 

47

 

 

 

84

 

 

 

-38

%

 

-65

%

Storage deployed (MWh)

 

415

 

 

 

229

 

 

 

203

 

 

 

81

%

 

104

%

Residential solar cash & loan (%)

 

70

%

 

 

73

%

 

 

68

%

 

 

-300

bp

 

200

bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store and service locations

 

402

 

 

 

377

 

 

 

346

 

 

 

7

%

 

16

%

Mobile service fleet

 

651

 

 

 

550

 

 

 

340

 

 

 

18

%

 

91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supercharger stations

 

1,587

 

 

 

1,490

 

 

 

1,308

 

 

 

7

%

 

21

%

Supercharger connectors

 

13,881

 

 

 

12,767

 

 

 

10,622

 

 

 

9

%

 

31

%

Destination charging connectors

 

23,160

 

 

 

22,399

 

 

 

19,203

 

 

 

3

%

 

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive revenues

$

5,376,389

 

 

$

3,723,861

 

 

$

3,357,681

 

 

 

44

%

 

60

%

of which regulatory credits

 

111,219

 

 

 

215,981

 

 

 

54,011

 

 

 

-49

%

 

106

%

Automotive gross profit

 

1,016,304

 

 

 

750,560

 

 

 

691,027

 

 

 

35

%

 

47

%

Automotive gross margin

 

18.9

%

 

 

20.2

%

 

 

20.6

%

 

 

-125

bp

 

-168

bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

6,349,676

 

 

$

4,541,464

 

 

$

4,002,231

 

 

 

40

%

 

59

%

Total gross profit

 

921,046

 

 

 

565,743

 

 

 

618,930

 

 

 

63

%

 

49

%

Total GAAP gross margin

 

14.5

%

 

 

12.5

%

 

 

15.5

%

 

 

205

bp

 

-96

bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

$

1,088,504

 

 

$

1,087,574

 

 

$

1,240,322

 

 

 

0

%

 

-12

%

Loss from operations

 

(167,458

)

 

 

(521,831

)

 

 

(621,392

)

 

 

-68

%

 

-73

%

Operating margin

 

-2.6

%

 

 

-11.5

%

 

 

-15.5

%

 

 

885

bp

 

1,289

bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

$

(167,458

)

 

$

(521,831

)

 

$

(621,392

)

 

 

-68

%

 

-73

%

Other (expense) income, net

 

(40,756

)

 

 

25,750

 

 

 

50,911

 

 

 

-258

%

 

-180

%

Depreciation, amortization and impairments

 

578,572

 

 

 

467,577

 

 

 

485,255

 

 

 

24

%

 

19

%

EBITDA

$

370,358

 

 

$

(28,504

)

 

$

(85,226

)

 

 

-1399

%

 

-535

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to

   common stockholders, diluted - GAAP

$

(2.31

)

 

$

(4.10

)

 

$

(4.22

)

 

 

-44

%

 

-45

%

Net loss per share attributable to

   common stockholders, diluted - non-GAAP

$

(1.12

)

 

$

(2.90

)

 

$

(3.06

)

 

 

-61

%

 

-63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in)

   operating activities

$

863,606

 

 

$

(639,606

)

 

$

(129,664

)

 

 

-235

%

 

-766

%

Capital expenditures

 

(249,677

)

 

 

(279,932

)

 

 

(609,813

)

 

 

-11

%

 

-59

%

Operating cash flow less capital expenditures

$

613,929

 

 

$

(919,538

)

 

$

(739,477

)

 

 

-167

%

 

-183

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

4,954,740

 

 

$

2,198,169

 

 

$

2,236,424

 

 

 

125

%

 

122

%

________________________
(1) The industry reference for days of sales is calculated by dividing new car inventory by the trailing four quarters of deliveries and using 261 working days (source: Automotive News).


 

Tesla, Inc.  

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive sales

 

$

5,168,027

 

 

$

3,508,741

 

 

$

3,117,865

 

 

$

8,676,768

 

 

$

5,679,746

 

Automotive leasing

 

 

208,362

 

 

 

215,120

 

 

 

239,816

 

 

 

423,482

 

 

 

413,252

 

Total automotive revenue

 

 

5,376,389

 

 

 

3,723,861

 

 

 

3,357,681

 

 

 

9,100,250

 

 

 

6,092,998

 

Energy generation and storage

 

 

368,208

 

 

 

324,661

 

 

 

374,408

 

 

 

692,869

 

 

 

784,430

 

Services and other

 

 

605,079

 

 

 

492,942

 

 

 

270,142

 

 

 

1,098,021

 

 

 

533,554

 

Total revenues

 

 

6,349,676

 

 

 

4,541,464

 

 

 

4,002,231

 

 

 

10,891,140

 

 

 

7,410,982

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive sales

 

 

4,253,763

 

 

 

2,856,209

 

 

 

2,529,739

 

 

 

7,109,972

 

 

 

4,621,136

 

Automotive leasing

 

 

106,322

 

 

 

117,092

 

 

 

136,915

 

 

 

223,414

 

 

 

241,411

 

Total automotive cost of revenues

 

 

4,360,085

 

 

 

2,973,301

 

 

 

2,666,654

 

 

 

7,333,386

 

 

 

4,862,547

 

Energy generation and storage

 

 

325,523

 

 

 

316,887

 

 

 

330,273

 

 

 

642,410

 

 

 

705,636

 

Services and other

 

 

743,022

 

 

 

685,533

 

 

 

386,374

 

 

 

1,428,555

 

 

 

767,343

 

Total cost of revenues

 

 

5,428,630

 

 

 

3,975,721

 

 

 

3,383,301

 

 

 

9,404,351

 

 

 

6,335,526

 

Gross profit

 

 

921,046

 

 

 

565,743

 

 

 

618,930

 

 

 

1,486,789

 

 

 

1,075,456

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

323,898

 

 

 

340,174

 

 

 

386,129

 

 

 

664,072

 

 

 

753,225

 

Selling, general and administrative

 

 

647,261

 

 

 

703,929

 

 

 

750,759

 

 

 

1,351,190

 

 

 

1,437,163

 

Restructuring and other

 

 

117,345

 

 

 

43,471

 

 

 

103,434

 

 

 

160,816

 

 

 

103,434

 

Total operating expenses

 

 

1,088,504

 

 

 

1,087,574

 

 

 

1,240,322

 

 

 

2,176,078

 

 

 

2,293,822

 

Loss from operations

 

 

(167,458

)

 

 

(521,831

)

 

 

(621,392

)

 

 

(689,289

)

 

 

(1,218,366

)

Interest income

 

 

10,362

 

 

 

8,762

 

 

 

5,064

 

 

 

19,124

 

 

 

10,278

 

Interest expense

 

 

(171,979

)

 

 

(157,453

)

 

 

(163,582

)

 

 

(329,432

)

 

 

(313,128

)

Other (expense) income, net

 

 

(40,756

)

 

 

25,750

 

 

 

50,911

 

 

 

(15,006

)

 

 

13,195

 

Loss before income taxes

 

 

(369,831

)

 

 

(644,772

)

 

 

(728,999

)

 

 

(1,014,603

)

 

 

(1,508,021

)

Provision for income taxes

 

 

19,431

 

 

 

22,873

 

 

 

13,707

 

 

 

42,304

 

 

 

19,312

 

Net loss

 

 

(389,262

)

 

 

(667,645

)

 

 

(742,706

)

 

 

(1,056,907

)

 

 

(1,527,333

)

Net income (loss) attributable to noncontrolling

   interests and redeemable noncontrolling

   interests

 

 

19,072

 

 

 

34,490

 

 

 

(25,167

)

 

 

53,562

 

 

 

(100,243

)

Net loss attributable to common

   stockholders

 

$

(408,334

)

 

$

(702,135

)

 

$

(717,539

)

 

$

(1,110,469

)

 

$

(1,427,090

)

Net loss per share of common stock

   attributable to common stockholders –

   basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(2.31

)

 

$

(4.10

)

 

$

(4.22

)

 

$

(6.40

)

 

$

(8.42

)

Diluted

 

$

(2.31

)

 

$

(4.10

)

 

$

(4.22

)

 

$

(6.40

)

 

$

(8.42

)

Weighted average shares used in computing

   net loss per share of

   common stock – basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

176,654

 

 

 

172,989

 

 

 

169,997

 

 

 

174,831

 

 

 

169,574

 

Diluted

 

 

176,654

 

 

 

172,989

 

 

 

169,997

 

 

 

174,831

 

 

 

169,574

 

 

 

 


 

Tesla, Inc.  

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,954,740

 

 

$

3,685,618

 

Restricted cash

 

 

128,006

 

 

 

192,551

 

Accounts receivable, net

 

 

1,147,100

 

 

 

949,022

 

Inventory

 

 

3,382,358

 

 

 

3,113,446

 

Prepaid expenses and other current assets

 

 

569,748

 

 

 

365,671

 

Total current assets

 

 

10,181,952

 

 

 

8,306,308

 

Operating lease vehicles, net

 

 

2,069,540

 

 

 

2,089,758

 

Solar energy systems, net

 

 

6,200,704

 

 

 

6,271,396

 

Property, plant and equipment, net

 

 

10,082,458

 

 

 

11,330,077

 

Operating lease right-of-use assets

 

 

1,248,277

 

 

 

 

Goodwill and intangible assets, net

 

 

480,833

 

 

 

350,651

 

MyPower customer notes receivable, net of current portion

 

 

400,308

 

 

 

421,548

 

Restricted cash, net of current portion

 

 

365,547

 

 

 

398,219

 

Other assets

 

 

842,978

 

 

 

571,657

 

Total assets

 

$

31,872,597

 

 

$

29,739,614

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,133,587

 

 

$

3,404,451

 

Accrued liabilities and other

 

 

2,622,943

 

 

 

2,094,253

 

Deferred revenue

 

 

883,293

 

 

 

630,292

 

Resale value guarantees

 

 

526,758

 

 

 

502,840

 

Customer deposits

 

 

631,107

 

 

 

792,601

 

Current portion of long-term debt and finance leases (1)

 

 

1,791,085

 

 

 

2,567,699

 

Total current liabilities

 

 

9,588,773

 

 

 

9,992,136

 

Long-term debt and finance leases, net of current portion (1)

 

 

11,234,401

 

 

 

9,403,672

 

Deferred revenue, net of current portion

 

 

1,182,042

 

 

 

990,873

 

Resale value guarantees, net of current portion

 

 

61,200

 

 

 

328,926

 

Other long-term liabilities

 

 

2,655,720

 

 

 

2,710,403

 

Total liabilities

 

 

24,722,136

 

 

 

23,426,010

 

Redeemable noncontrolling interests in subsidiaries

 

 

580,227

 

 

 

555,964

 

Total stockholders' equity

 

 

5,715,393

 

 

 

4,923,243

 

Noncontrolling interests in subsidiaries

 

 

854,841

 

 

 

834,397

 

Total liabilities and equity

 

$

31,872,597

 

 

$

29,739,614

 

 

 

 

 

 

 

 

 

 

(1) Breakdown of our debt is as follows:

 

 

 

 

 

 

 

 

Recourse debt

 

$

7,813,001

 

 

$

7,080,584

 

Non-recourse debt

 

$

3,552,674

 

 

$

3,551,891

 

 

 

 


 

Tesla, Inc.  

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(In thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(389,262

)

 

$

(667,645

)

 

$

(742,706

)

 

$

(1,056,907

)

 

$

(1,527,333

)

Adjustments to reconcile net loss to net

   cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, amortization and impairment

 

 

578,572

 

 

 

467,577

 

 

 

485,255

 

 

 

1,046,149

 

 

 

901,488

 

Stock-based compensation

 

 

209,863

 

 

 

208,378

 

 

 

197,344

 

 

 

418,241

 

 

 

338,983

 

Operating cash flow related to repayment of

   discounted convertible notes

 

 

 

 

 

(188,107

)

 

 

 

 

 

(188,107

)

 

 

 

Other

 

 

177,285

 

 

 

216,292

 

 

 

97,432

 

 

 

393,577

 

 

 

251,237

 

Changes in operating assets and liabilities,

   net of effect of business combinations

 

 

287,148

 

 

 

(676,101

)

 

 

(166,989

)

 

 

(388,953

)

 

 

(492,415

)

Net cash provided by (used in)

   operating activities

 

 

863,606

 

 

 

(639,606

)

 

 

(129,664

)

 

 

224,000

 

 

 

(528,040

)

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(249,677

)

 

 

(279,932

)

 

 

(609,813

)

 

 

(529,609

)

 

 

(1,265,475

)

Payments for the cost of solar energy systems,

   net

 

 

(18,197

)

 

 

(25,261

)

 

 

(67,400

)

 

 

(43,458

)

 

 

(140,375

)

Purchase of intangible assets

 

 

(5,333

)

 

 

 

 

 

 

 

 

(5,333

)

 

 

 

Business combinations, net of cash acquired

 

 

31,662

 

 

 

(650

)

 

 

(5,604

)

 

 

31,012