Tesla Earnings Call Summary Q1 2020
Tesla Earnings Call Summary Q1 2020
Tesla (Nasdaq: TSLA) Q1 2020 Earnings Call Summary
Elon Musk’s Opening Remarks
- Achieved positive GAAP net income for the first time
- Excluding regulatory credits, 20% automotive gross margin
- More Model Ys have been produced in comparison to Model 3 for the first 2 quarters in Fremonts
- Model Y profitable in its first quarter
- For auto-pilot, tesla cars will automatically stop at Stop sigh or traffic light
- Data being collected every month from over 1M intersections with the aim to have 1 Billion collected every month
- Confident by the end of the year that you can go from your home to your office without any interventions
- Model S range has been increased
- Model X range has been increased
- Some forward looking statements by Elon
- Working on capacity expansion of Model Y at Giga Shanghai and Berlin
- Reduced costs as a result of localized production in Europe and China resulting in a competitive product
- Over 1M units a year in capacity
Zachary (CFO) Notes
- First Q1 profit, helped by highest every backlog
- Working to restart production in Fremont as soon as possible
- Increase in balance of inventory by 14K at the end of Q1
- Still getting online orders even with the lockdown
Some highlights from Investor Q&A
- Reduced price of Model 3 so that we can try to qualify for NEV Subsidy in China
- Cost of producing vehicles in Shanghai is lower than Fremont for Model 3
- Full Service Driving (FSD) is sold for $7000 in North America and half of that is revenue and the other Half is deferred revenue – with deferred revenue a little bit over $600 million
- Elon: Believe 40% to be a realistic number for Compound Annual Growth target and would be shocked if it is less than 40%
- Will likely announce the next Giga factor in the next month or so and will be located in US
- For Solar Roof installations, expecting 1000 a week installs end of year
You can also view Tesla Earnings call summary for Q4 2019