Cruising

Tesla unveils a surprise profit (and a bunch of things are "ahead of schedule")

Thursday, October 24, 2019 by Robinhood Snacks | Disclosures
_Elon announcing Tesla's earnings_

Elon announcing Tesla's earnings

Best-in-class PDF formatting... As frequent readers of Tesla earnings reports, we appreciate the company's new slide layout (the old earnings letters were impossible to read). Tesla shareholders appreciated the actual substance of the 3rd quarter earnings report, boosting the stock a whopping 20% on these key updates:

  1. Model Y is "ahead of schedule": The Goldilocks model is bigger than Model 3, smaller than Model X. Americans love this type of crossover SUV, and production's now expected to start summer 2020.
  2. China is "ahead of schedule": Tesla's building full production capabilities to serve the biggest market (by far) for electric vehicles. The gigafactory in Shanghai materialized in just 10 months, now ready for production.
  3. It's profitable (!): Tesla's yet to have a full year of profitability, and even quarterly ones are collectors items for Tesla stock owners.
THE TAKEAWAY

Tesla's supposed to be setting records... It's 16-years-old, but company-wise it's still in puberty. Tesla's adding new plants and should be setting sales records each quarter. While the number of cars delivered did hit an all-time high, revenues actually dipped last quarter from $6.8B to $6.3B. Tesla says that's because more customers are leasing — apparently that satisfied investors.