After market close today, Tesla released its financial results and shareholders letter for the third quarter 2017. Wall Street was expecting record revenue of about $2.9 billion for the quarter and a loss of about $2.45 per share due to large capital expenditure caused by the slow start of Model 3 production.
The company released the official results today delivering on revenue of ~$2.9 billion and missed on earnings with a loss of $3.70 per share (GAAP).
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Here we will be posting our follow-up posts about the earnings to expand on the most important points (refresh the page to see the most recent posts):
- Tesla gives update on Model 3 production problems, delays ramp up by 3 months
- With Model 3 anticipation high, Tesla is still selling record numbers of Model S and X
- Tesla Energy update: 110MWh of energy storage and 109MW of solar
- Tesla hypes new Autopilot functions enabled by new AI & vision neural net in ‘next several months’
The shareholder letter has been embedded in full below.
Tesla’s stock price was down 4% in aftermarket trading following the release of the results.
The results compare to revenue of ~$2.8 billion and a loss of $2.04 per share (GAAP) during the previous quarter.
Tesla slightly updated its record delivery results for Model S and Model X:
“In Q3, we delivered 25,915 Model S and Model X vehicles and 222 Model 3 vehicles, for a total of 26,137 deliveries. Combined Model S and Model X deliveries in Q3 grew 18% globally compared to Q2 and 4.5% versus the same quarter one year ago. Consequently, both Model S and Model X gained further market share in the US luxury vehicle market. In addition, our used vehicle sales more than doubled from the prior quarter.”
The company’s gross margin took a big hit: 18.3% down from 27.9% quarter-over-quarter. It is attributed to Model 3 production being extremely costly right now with little deliveries.
Investors will be happy to know that Tesla is not planning another capital raise despite its wider losses:
“Between cash on hand, future cash flows and available lines of credit, we believe that we are well capitalized to accommodate the revised ramp of Model 3 production to 5,000 per week. Upon achieving this production level, we expect to generate significant cash flows from operating activities.”
Here’s the shareholder letter in full: