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Tesla (TSLA) Q1 2019 earnings call updates: Live Blog

(Photo: Tesla)

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Tesla’s (NASDAQ:TSLA) first-quarter earnings call comes at a pivotal point for the electric car maker. Following a record-setting Q4 2018 that saw new highs for production and deliveries, Q1 2018 saw a drop in the company’s vehicle production and deliveries. Since then, the stock has been weighed down as reservations emerged about the company’s capability to sustain its profitability, which it attained in the third and fourth quarter of 2018.

Tesla announced a net loss of $702 million for the first quarter, translating to a loss of $4.10 per share. The company also listed $4.5 billion in revenue, which is below Wall Street expectations.

For today’s earnings call, Elon Musk and Tesla’s executives are expected to address questions surrounding the company’s financial standing and its capability to pursue its ongoing projects such as Gigafactory 3 in China and the Tesla Pickup Truck, among others. Questions from retail investors aggregated by investor communication firm Say are also expected to be included in the Q&A session.

The following are live updates from Tesla’s Q1 2019 earnings call. Fellow Teslarati reporter Dacia Ferris and I will be updating this article in real-time, so please keep refreshing the page to view the latest updates on this story.

Simon 15:35 PT: And that’s a wrap. Thanks for joining us on this Live Blog of Tesla’s Q1 2019 earnings call, everyone! Check out our coverage of Tesla’s Q1 2019 Update Letter here too, for more details on the electric car maker’s performance in the first quarter. 

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Dacia 15:32 PT: Thanks everyone! Let’s decide on a new soundtrack to rev up while waiting for next earnings call, shall we? I went down the 90s rock YouTube hole today. Open for better ideas. #justsaying

Simon 15:30 PT: Gigafactory 3 will likely be a huge piece in the Tesla puzzle. Elon Musk notes that by the end of the year, Tesla is aiming for a production rate of around 1,000 Model 3 per week, or maybe even 2,000 per week. “We expect multiple battery suppliers for Shanghai Giga,” Musk said, responding to a question about battery partners for the upcoming facility.

Dacia 15:30 PT: Elon says he gets daily photos of the Gigafactory 3 progress in Shanghai. “It looks like we’ll reach volume production by the end of this year…that’s what it looks like right now. If it’s not then, it will be shortly thereafter.”

Dacia 15:29 PT: “Our goal is the make our cars as affordable as possible,” Elon responds to a question about the logic of the pricing changes during the quarter. “The $39,500 Model 3 just really hit the sweet spot,” he says, referring to sales of the $35,000 Model 3.

Dacia 15:26 PT: “The upgraded powertrain for the S,X was at a significant cost down,” Elon says about the recent refresh. They took parts from the Model 3 that were highly efficient.

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Dacia 15:25 PT: A Battery Investor Day in the future? “I think we’ll have another autonomy day later this year to go over cell and battery development in greater detail,” Elon says in response to a question on future chemistry and form factor changes in batteries.

Dacia 15:24 PT: Adding on Tesla Model Y reservations. “People read too much into this…we aren’t playing up the Model Y because it isn’t in production. You can’t read too much into it,” Elon notes as he responds to longtime TSLA bear David Tamberrino from Goldman Sachs.

Simon 15:24 PT: On Model Y reservations. “We’re not playing up Model Y because it is not in production,” Elon Musk says. “We don’t comment on future price changes,” he adds.

Dacia 15:22 PT: “Sales to a country overseas are affected by when the ship arrives,” Elon explains, citing that delays make it seem like something is wrong, when its just the ship schedule. GDP fluctuations resulting from ship deliveries are not accurate measures, he reiterates.

Dacia 15:20 PT: “We will continue to ADD stores in locations that are no brainers and close them…where the foot traffic doesn’t fall below the cost of having the store,” Elon admits and explains. People misunderstood “all sales online” to mean “all stores are closing.” I’ll admit, I thought that, too at first.

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Simon 15:19 PT: On Tesla store closures. “I think Tesla is specifically didn’t handle the messaging of that well. We certainly will continue to have stores, and we will continue to add stores, provided that they are in locations with high foot traffic, and in areas with people with our target market. We will close stores where they are incredibly hard to find, and where foot traffic of potential customers is low. I think it’s just common sense,” Musk said.

Dacia 16:15 PT: “Tesla today is a far more efficiently operating organization than we were a year ago,” Elon doubles down on not needing additional capital. He says technically they did raise some capital for Gigafactory 3 in Shanghai.

Dacia 15:14 PT: “I don’t think raising capital should be a substitute for making the company work more effectively…we should be frugal with capital…. We need to be on a Spartan diet… It’s not the right time to raise capital,” Elon says on whether Tesla would be better served by better cash flow with raised capital. “I don’t think capital has been a constraint on our growth so far…I would have raised capital if I thought so,” he adds.

Dacia 15:10 PT: “There really do seem to be different market segments,” Elon says in response to a question about Model 3 cannibalizing Model S and X. Owners really just want to replace the car they have, not buy M3 over Model S,X, he concludes.

Dacia 15:08 PT: “I would prefer we were private,” Elon admits. He cites Warren Buffett, saying having a public company is like having someone stand outside your home and shout its price/value every day. He nonetheless admits that he does not have a solution for the issues that come from public company pressures.

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Dacia 15:05 PT: On Full Self-Driving safety, Tesla will keep reporting their findings and numbers at “a broad brushstroke level”…”We do give some information to insurance companies to reduce rates,” Elon says, meaning FSD safety data to lower auto insurance rates for Tesla owners.

Dacia 15:03 PT: “We think it is important to unwind this wave [of deliveries] because it ends up being optimizing for one quarter but adding a lot of difficulty and not a great experience for customers,” Elon says. “We did adjust our pricing in Q1 which puts pressure on our margin,” Kirkhorn adds. Once all the unwinding is done, they feel confident profitability will return in Q3.

Simon 15:03 PT: Tesla appears to have absorbed the blows in the first quarter to ensure that the following quarters will be smoother. A return to 100k/year for Model S and Model X appears to be in the future.

Dacia 15:01 PT: On questions about weak demand in US — Elon sees demand returning to normal in the near future. “I don’t have a crystal ball…my impression is demand is quite solid,” he says. Retooling decreased production in Q1…ramping back up in Q2. “We will exit Q2 in higher production than Q1 on the S,X,” Kirkhorn chimes in.

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Dacia 14:58 PT: “I’m a fan of tents, like real, hardcore tents. Not Boy Scout tents (which are fine),” Elon says, referring to adding space for Model Y production at Fremont. He’s confident they’ll find the space for it (not necessarily confirming it will made in tents).

Dacia 15:56 PT: “The SR+ Model 3… is just an incredibly compelling vehicle,” Elon touts. The upgraded S,X — it’s kind of a game changer. We are out of the Q1 winter hangup for new car sales (people don’t like buying cars in winter), all positive factors for the future, he says. “Overall, I feel pretty good about where things are headed.”

Dacia 15:54 PT: On Model Y production: Model Y production location being decided soon, per Elon. Close call between Nevada or Fremont. Decision in next few weeks.

Simon 14:54 PT: On the Tesla Semi, Elon Musk and Jerome Guillen note that the prototypes of the all-electric long-hauler are performing great. Production will likely be on Reno, NV. “The prototypes are working amazingly well,” says Elon.

Dacia 15:53 PT: How soon will owners get the new FSD upgrade? Elon said there’s no need for it for 2-3 months. Features will then be released that will have use for the FSD.

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Simon 14:51 PT: Some questions from retail shareholders are addressed. The company notes that it is just waiting for the necessary approvals from the SEC with its Maxwell acquisition. On Tesla’s own insurance program, Elon says yes, the company will be rolling out one, hopefully in a month. “It will be much more compelling than anything out there,” Elon Musk said.

Dacia 15:45 PT: Model 3 growth margin declined slightly – pricing adjustment and product offering mixup both part of that decline, per Kirkhorn. Our product lineup has a good deal of excitement.

Simon 14:44 PT: The CFO notes that in spite of the launch of the Standard Range Model 3, a significant portion of Model 3 orders in the United States still correspond to the Long Range versions of the vehicle.

Dacia 15:43 PT: “The global expansion of Model 3 was a huge theme within the quarter,” Zachary Kirkhorn, Tesla’s new CFO begins his comments. Two key themes he cites: On the cash front $2.2 billion ending balance, reduction from payment of convertible note which was investment into service and systems; Q1 challenges aren’t expected to continue, and cash balance will increase.

Simon 14:41 PT: Zachary Kirkhorn, Tesla’s new CFO takes the floor. He describes how the first quarter of 2019 was a complex time for Tesla’s finances. Tesla is tracking in April the largest amount of deliveries in the company’s history.

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Dacia 15:40 PT: – Elon now touts the Model S, X upgrades that were just released last night, highlights the free Ludicrous Mode upgrade for loyal customers. Motor Trend test drove the enhanced Model S from SF to LA on one charge – Elon compares it to a gas powered car, citing Model S’s superiority.

Simon 14:38 PT: Elon emphasizes that Model 3 international ramp is only beginning. He also mentions the improvements for the Model S and X, which include adaptive suspension, better range, and better charging speeds.

Dacia 15:38 PT: “We believe over time, we will be the best selling premium car in the world…In March we set a record for the highest car sales, period,” Elon says. He sounds positive, despite the report. Cites people paying more for a Model 3 than they’ve ever paid for another car because they **want** one.

Dacia 14:33 PT: “We believe we’ll have the most profitable autonomous taxi on the market,” Elon Musk says. Half of all deliveries occurred during the final 10 days of Q1, “which was an insane undertaking, basically,” he adds.

Simon 14:34 PT: Elon Musk takes the floor. Elon discusses Tesla’s Autonomy Day and reviews the points outlined during the event. Elon also discussed “good challenges” in Q1, particularly in terms of Model 3 deliveries in Europe and China. Highlights that half of Q1’s deliveries happened in the final 10 days of Q1 2019.

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Simon 14:31 PT: And we are starting. No Elon Time today. Tesla Senior Director, Investor Relations Mr. Martin Viecha takes the floor.

Simon 14:30 PT: Welcome to our live blog for Tesla’s Q1 2019 earnings call. The electric car maker posted a loss of $702 million in Q1, which missed Wall Street estimates. It will be interesting to see how Elon Musk and Tesla’s other executives address these updates in the upcoming Q&A session.

Dacia 14:30 PT: Well, it’s said in some circles that when Tesla releases an earnings report late…it’s not gonna be happy news. Theory holds up today, but profitability is expected in Q3. We’ll see what Elon decides come then.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Tesla analyst maintains $500 PT, says FSD drives better than humans now

The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.

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Credit: Tesla

Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers. 

The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.

Analysts highlight autonomy progress

During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.

The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report. 

Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”

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Street targets diverge on TSLA

While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.

Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements. 

Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs. 

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Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed

The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.

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Credit: Joe Tegtmeyer/X

Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives. 

Robotaxi rollout, FSD updates, and new affordable cars

Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.

Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.

TD Cowen also places an optimistic price target

TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects. 

Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.

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@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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Investor's Corner

Tesla receives major institutional boost with Nomura’s rising stake

The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.

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Credit: Tesla China

Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker. 

Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.

Institutional investors and TSLA

Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.

The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.

Recent insider sales

Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.

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Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.

@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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