Last night, Tesla released its second quarterly financial report for the fiscal year 2018, which ended June 30.
Consolidated revenue increased from $ 2, 8 billion to $ 4 billion. And this is a new record. If you select only activities related to the production of electric vehicles, the company's main business, revenue is $ 3.4 billion compared to $ 2.3 billion a year earlier. Another $ 374.4 million Tesla brought energy production and storage systems, while services and other areas accounted for $ 270 million in total. We note that revenue growth was recorded in all directions.
Operating expenses for the quarter were $ 1.2 billion. They spent $ 386 million on R & D
Yes, Tesla is still unprofitable, but if you remember, Mask promised to return the company to profit only in the third quarter of this year. The second quarter for Tesla ended with a net loss of $ 742.7 million against a loss of $ 385.78 million a year earlier and losses of $ 784.63 million in the first quarter. But the most important thing is that another goal has been achieved with Model 3 – the most affordable car in the line finally started to bring Tesla money. Thus, the plan to sell more expensive versions, and with the release of cheap Model 3 for $ 35 thousand to wait to survive, seems to have worked.
The report says that the net profit margin of Model 3 remains "slightly positive". Until recently, Tesla was losing money on every Model 3 car produced. Now the manufacturer says that the profit margin for this model should "grow significantly": about 15% in the third quarter and up to 20% in the fourth. Recall last month, President Munro & Associates called Model 3 the most profitable electric car on the market. The manufacturer is actively increasing production rates, but has not yet shipped a single all-wheel drive modification with two engines.
Speaking with analysts, Ilon Mask said that now the goal is to break even and maintain a positive cash flow. Will it succeed in the company, time will tell.
At the end of the quarter, Tesla had $ 2.2 billion in cash and its equivalents. That is, in the coming quarter, Mask will not need to "be afraid" of investors and seek additional financing. But it will definitely be needed in the future, given that in the near future there are at least a couple of new cars – the Model Y and Roadster crossover of the second generation – and the fully electric Tesla Semi Truck. In addition, last month we learned that Tesla is going to build a plant in China to produce electric cars with a capacity of 500,000 cars per year. In a letter to investors, Mask wrote that the plant will start producing cars in the next three years. According to analysts, the plant in China can cost more than $ 5 billion, while Musk says about $ 2 billion, which it plans to borrow in China.
In addition, the company is currently negotiating the construction of the fourth Gigafactory in Europe, which, most likely, will be built in Germany, not in Ternopil.
The report on the number of cars produced and delivered in the last quarter of Tesla was published a month ago, and we already had time to study it.
At the end of June, Tesla entered the production of five thousand Model 3 in Yeh-lii and now should have let on six thousand Model 3 a week, but in the report, this figure is not mentioned anywhere. In total for the quarter, Tesla was able to produce 53,339 electric vehicles: a total of 22,319 Model S sedans and Model X crossovers and another 18,449 Model 3 sedans. This is 55% more than in the second quarter of 2017. The Model S and Model X supply plan for this year remains unchanged – about 100 thousand in total. As for Model 3, in this quarter the company plans to produce from 50 thousand to 55 thousand copies, which corresponds to an increase in the quarterly terms of 75% 92%.
Finally, we note that Tesla shares sharply increased after the publication of the financial statements after the closing of the main trades.