Tesla Q2 2019 Earnings Report: Over $6.3 Billion In Revenue

How did the world's largest electric automaker perform during the quarter? Let's take a look.

Tesla Model 3 Auto Express

Eric Loveday

By: Eric Loveday

Jul 24, 2019 at 5:07pm ET

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Tesla announced Wednesday its Q2 2019 earnings report. The automaker's report showed that profit levels achieved late last year could not be maintained in Q1 or Q2 of 2019.

The main financial details from the Q2 2019 report are as follows:

$6.349 billion in revenue
Loss of $2.31 per share
Non-GAAP loss per share: $1.12
GAAP/Net loss of $408 million

And here's what Tesla was expected to report, according to analysts.

Non-GAAP loss per share: $0.40-$0.55
GAAP/Net loss: ~$300 million
Revenue: $6.44 billion

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Musk stated earlier this year that Tesla probably wouldn't profit in the first quarter. However, the CEO did expect Tesla to achieve profitability in the second quarter of this year. Turns out that didn't happen.

Tesla Model 3

The Model 3 is the primary focus of late. On this front, Tesla states:

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 and Model 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.

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.

Some additional Q2 notes related to Tesla's vehicles and financials:

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.

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You'll find Tesla's release in its entirety linked below. It includes some limited info on Autopilot, the Gigafactory in China and the Model Y.

Tesla Q2 2019 Earnings Report

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