Tesla Q4 2019 Earnings Review


In this live stream I will review the TSLA Q4 Shareholder Letter.

All eyes are on Tesla today as they reported their Q4 2019 earnings.

Tesla stock has divided investors into raging bulls and angry shorts.

And today Tesla made the case that they’re just getting started.

Tesla announced $105M GAAP net income; $386M non-GAAP net income in Q4.

Also, their cash and cash equivalents increased a whopping $930M to $6.3 billion.

This shows the critics that Tesla has plenty of cash in the bank, and with some left over.

Tesla had record deliveries of 112,095 vehicles in the quarter.

Perhaps the biggest news is Tesla announced Model Y has already started production.

Model Y production ramp started in January 2020, ahead of schedule.

And the first customer delivered are expected by the end of Q1 2020.

Model Y all-wheel drive now has an increased EPA range of 315 miles (from 280 miles).

The Model Y production ramp will be gradual as Tesla adds more machinery.

By mid-2020, Model 3 and Model Y capacity should reach 500,000 units per year.

Tesla is also expanding overseas.

They have broken ground on the next phase of the Gigafactory Shanghai.

And they expect first deliveries from their Gigafactory Berlin in 2021.

For full year 2020, vehicle deliveries should comfortably exceed 500,000 units.

Both solar and storage deployments should grow at least 50% in 2020.

We expect positive GAAP net income going forward, with possible temporary exceptions, particularly around the launch and ramp of new products

Overall, Tesla showed that they continue to be on a roll.

They’re expanding to new markets and silencing skeptics.

They’re making a profit and putting more cash in the bank.

And they’re about to deliver the first Model Y vehicles by the end of March this year.

Congratulations Tesla on an amazing quarter.

23 replies
  1. William Bailey
    William Bailey says:

    Dave! Love the channel. Just my thoughts on the 500,000 full year 2020 delivery statement. Maybe I’m wrong, but what would Tesla have to gain by giving a high estimate? Let’s say they state 800,000 for full year 2020, hypothetically. By the Jan report in 2021 they report 799, 500. The stock will sink and investor money will be lost, even though they had an extremely productive year. Maybe they’re low balling with .5 million to easily achieve their goals, secure investor money and keep the company moving forward in that sense?

  2. Ziggi Mon
    Ziggi Mon says:

    Ignorant celebrating another dismal quarter.
    Accrued liabilities up $400M.
    Accounts Payable up $300M.
    Pretty easy to increase cash if you don't pay your bills.
    Versus same quarter a year ago, this amazing hyper growth company just reported:
    1% revenue growth
    4% less total gross profit
    25% less GAAP net income
    Regulatory credits sold: $133MM
    GAAP net income: $105MM
    GAAP net income less regulatory credits: -$28MM

  3. Curtis Davis
    Curtis Davis says:

    Congrats!! Tesla on the qtr. A car plant can produce 1k cars per day.. ie. Freemont can produce 300k/year cars.. Shanghai ramping up can produce 1/2*.33…75k cars maybe. Always, we should pad the numbers b/c a supplier can run out parts: seats, mirrors, batteries, etc ..can slow production.. But, I clearly see a $1000 per share by early 2021. Great show! Thanks


Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *