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Tesla (TSLA) Q2 2019 results: Record cash as Model 3 and China Gigafactory take off


Tesla’s (NASDAQ:TSLA) second-quarter earnings for 2019 saw the electric vehicle manufacturer place a sales of $6.3 billion, falling short of Wall Street’therefore quotes. The results, which have been discussed at length in an Update Letter, were released after the final bell Wednesday, July 24. 

Following are the essential factors in Tesla’s Q2 Update Letter. 


Tesla reported that a net loss of $408 million, translating to a loss of $2.31 per share, a notable improvement from the $3.06 loss the company reported from Q2 2018. By comparison, analysts resisted by FactSet expected Tesla to report that an adjusted quarterly loss of $0.39 per share. Estimize, a crowdsourced system that aggregates quotes by analysts, executives, fund managers, and academics, expected Tesla to report that an adjusted loss of $0.25 per share. 


Tesla reported earnings of $6.3 billion for its second quarter, which is also a noteworthy improvement on its figures in Q2 2018, some period when the company revealed a earnings of $4 billion. Analysts polled by FactSet expected Tesla to report earnings of $6.5 billion in the second quarter, whilst Estimize put Tesla in a marginally more optimistic $6.6 billion.

RELATED: LIVE BLOG: Tesla (TSLA) Q2 2019 earnings call upgrades

Cash Balance

Tesla’s money balance attained new peaks in the second quarter, thanks in part to some capital increase in May. From the end of the quarter, the Tesla had $5 billion in cash and cash equivalents. This is the highest at Tesla’s history up to now. “This amount of bandwidth puts us at a comfortable place as we prepare to start Model 3 production from China and also Model Y production in the US,” the company wrote. 

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Model 3

The Model 3 has gotten to a continuing production speed of 7,000 vehicles per week from the second quarter. Tesla is still aiming to strike on a production speed of 10,000 Model 3 per week by the end of 2019. Apart from these, the Model 3’s higher-tier variants stay popular among buyers. “During the entire year, the vast majority of orders continued to be for a long-range battery choice and the Model 3 typical selling price (ASP) was stable at approximately $50,000. At precisely the identical time ” Tesla wrote. 

Gigafactory 3

Tesla’s Gigafactory 3 at Shanghai is progressing in an incredibly rapid speed . The overall assembly building that can sponsor Model 3 and Model Y production is nearing completion, and other structures in the complex, like a substation, continue to take form. “Gigafactory Shanghai continues to take form, also in Q2 we began to transfer machines into the centre for its very first phase of production there. This will be a simplified, more cost-effective version of the Model 3 line with capacity of 150,000 units annually — the second generation of the Model 3 production process,” the electric vehicle maker composed. 


Tesla has chosen to maintain its advice of producing a total of 360,000 to 400,000 vehicles at 2019. The company has noticed that it is “working to boost our deliveries sequentially and yearly, with some expected changes from seasonality. ”

Other highlights

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

GAAP operating loss of $167M, GAAP net loss of $408M, for example $117M ofrestructuring and other charges
Auto gross margin at ~19 percent in spite of reductions in vehicle ASP and reduced regulatorycredit revenue
On track to start Gigafactory Shanghai by end of 2019 and Model Y by collapse of 2020

A URL on Tesla’s Update Letter for the second quarter can be accessed here

Join us at our forthcoming Live Blog as we combine Elon Musk on the second-quarter earnings telephone. 

The article Tesla (TSLA) Q2 2019 results: Record money as Model 3 and also China Gigafactory eliminate appeared first on TESLARATI.

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