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Tesla posts Q4 2017 earnings beat, Model 3 production on track

Tesla’s fourth quarter and full-year earnings for 2017 saw the California-based carmaker meet Wall Street revenue estimates after posting $3.28 billion in revenue and beating earnings estimates with a loss of $675 million.

The results, which were posted in an update letter to investors after the closing bell on Wednesday, February 7, showed a fourth-quarter earnings loss of $3.04 per share, meeting analyst estimates of a $3.12 per share loss. Revenue was $3.29 billion versus an estimate of $3.3 billion.

Here’s a brief summary of Tesla’s Q4 2017 and full-year earnings report.

  • Record Model S and Model X deliveries in Q4 2017
  • Cash balance of $3.37B entering Q1 2018
  • 2017 revenue of $11.76B, up 55% y-o-y from organic growth
  • 2018 revenue growth expected to significantly exceed 2017 growth
  • Continuing to target Model 3 production rate of 5,000/wk by Q2 end

REVENUE

The company’s revenue consisted of $2.4B in automotive revenue, which is an increase of 38.5% over Q4 2016. Tesla’s generated a revenue of $298M in energy generation and storage as well, compared to $131M in Q4 2016. Overall, Tesla’s revenue was up 67% from 2016. 

Automotive revenue increased 16% over Q3 2017, while energy generation and storage decreased 6%.

The company deployed 87 MW of energy generation products and 143MWh of energy storage products in the fourth quarter.

Tesla also stated that now 54% of residential solar installations were sold rather than leased, this is compared to just 25% of all residential solar in Q4 2016.

MODEL 3

Tesla delivered 1,542 Model 3’s in Q4 2017, representing a fraction of the total amount of the company’s deliveries and revenue.

“What we can say with confidence is that we are taking many actions to systematically address bottlenecks and add capacity in places like the battery module line where we have experienced constraints, and these actions should result in our production rate significantly increased during the rest of Q1 and through Q2,” Tesla notes in the Q4 letter.

GUIDANCE FOR END OF 2018

In 2018 Tesla expects to deliver 100,000 Model S and X vehicles, citing production constraints with the 18650 batteries. The company did not give delivery guidance for the Model 3, but does expect to reach a Model 3 production level of 5000/week by the end of Q2 2018.

Tesla, however, expects to show a significant growth in its energy storage products, with an aim to triple its sales this year. The California based electric car and energy firm is also expecting to see revenue from Superchargers as well, together with the Model 3 rollout.

Tesla has just over $3.37B in cash at the end of the quarter, slightly down from $3.39B in the previous quarter.

Today’s session ended up closing up 3.30% at $345. After-hours, the stock is trading up another .5%. Tesla shares have gained 31% in the past 12 months

The full Q4 2017 letter can be found here.

Tesla posts Q4 2017 earnings beat, Model 3 production on track

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