Tesla Earnings Call Summary Q4 2019

by Stilgar

Tesla (Nasdaq: TSLA) Q4 2019 Earnings Call Summary

Have noted summary of Tesla’s 2019 Q4 Earnings Call Summary. You can also view Alphabet’s 2020 Earnings Call Summary.

Elon’s Highlights for Tesla Q4 2019 Earnings

  • Strong Q4
  • 112,000 delivery of vehicles in a single quarter
  • Zero advertising spend
  • Congrats to Shanghai team for launching Model 3 last quarter
  • Model Y has begin production in limited volumes in January, with a EPA rating of 315 miles
  • More than $1 billion in Free Cash Flow in 2019
  • Focus for next couple years include Giga Berlin, Tesla Semi, Model Y, Cybertruck, Solarglass, full self-driving, Roadster

CFO Zachary’s Highlights

  • Increase in Model S and Model X Average Selling Price (ASP)
  • Stable Model 3 Average Selling Price
  • New production capacity at a lesser cost (Model 3 and Model Y as an example)
  • First deliveries in later this quarter for Model Y with ramp up in subsequent quarters
  • Model Y is expected to have higher gross margins than Model 3
  • Expect strong orders fro locally built Model 3
  • Increase in Operating expenses as a result of increased product pipeline and international expansion
  • Operational Expenses is still expected to be lower than top line revenue
  • Government requirement factory shutdown is expected to cause a 1 to 1.5 week daily for Model 3

Some Highlights from Q&A with Investors

  • Lot of interest for Tesla Solar Roofs. Working with homebuilders, roofing industry. Lot of challenges to overcome and is expected to become a major product for Tesla.
  • Expect discounts for using Autopilots for Tesla Insurance
  • Over-time, expect Insurance to be a major product of Tesla
  • It won’t be long before Model S has 400 mile range
  • The ranges of Model S and Model X are higher than what is stated on the site as they haven’t gone around to update the EPA estimates
  • Need to improve total batter capacity
  • Worries more about production than demand