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

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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. 

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

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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.

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.

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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.

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.

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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.

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.

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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.

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.

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.

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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.

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.

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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 reports Q3 Earnings today: here’s what to expect

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Credit: TechOperator | X

Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.

Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.

Tesla showrooms picked clean ahead of Q3 end as demand looks strong

For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:

  • Total Revenues: $28.34B
  • Non-GAAP EPS: $0.43
  • Operating Margin: 2.5%
  • Operating Income: $721M
  • Free Cash Flow: ~-$4.51B

Here are a few things we are looking forward to hearing about on the call:

Automotive Gross Margin and Overall Profitability

This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.

Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.

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Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress

The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.

Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.

Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for

Say Investor Questions

  1. How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
  2. When can we anticipate FSD unsupervised in customer cars?
  3. When will the CyberCab be available for customer purchase/ownership?
  4. What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
  5. Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?

The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.

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SpaceX stock gets a slew of price target boosts after bullish earnings call

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Wall Street analysts rapidly raised price targets on SpaceX (NASDAQ: SPCX) after the company reported a bullish third quarter for 2026 following the market close on October 20. Shares were sent sharply higher in after-hours and premarket trading.

SpaceX posted revenue of $14.6 billion, a 161 percent year-over-year increase that comfortably topped consensus estimates, which fell near $12.7 billion. The company also posted a net profit of $4.4 billion from a prior-year loss, with adjusted EBITDA reaching $8.8 billion.

Its Super Intelligence (AI) division generated roughly $7.6 billion and became the largest revenue contributor, growing nearly 830 percent year-over-year, while the Connectivity segment delivered $5.2 billion on strong subscriber additions that lifted the consumer base to 13.6 million for Starlink.

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The Earnings Call proved especially catalytic, as CEO Elon Musk and CFO Bret Johnsen outlined Q1 2027 revenue guidance of $33 billion to $37 billion, which was far above the roughly $22 billion analysts had modeled, alongside fourth-quarter capital-expenditure plans of $35 billion to $40 billion focused on AI compute infrastructure at sites including Memphis and Southaven.

SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms

Management targets 2.5 to 3 gigawatts of nameplate compute capacity by year-end and discussed pathways to 13 gigawatts or more by the end of 2027. Musk described relentless demand from hyperscalers and other customers, with compute pricing supporting payback periods of less than a year and potentially as short as six months.

Additional highlights included Starship’s recent orbital success and V3 satellite deployment, Starlink pricing and enterprise momentum, rapid Grok Bot adoption, spectrum expansion plans, and the formation of special committees to explore a possible combination with Tesla.

These elements prompted a wave of price-target increases:

  • JPMorgan more than doubled its target to $500 from $240 while maintaining an Overweight rating.
  • Cantor Fitzgerald lifted its target to $345 from $246 (Overweight).
  • Barclays raised its target to $300 from $254 (Overweight).
  • Citi increased its target to $240 from $200 (Buy),
  • UBS moved to $230 from $210 (Buy), and
  • TD Cowen raised its target to $224 from $200 (Buy).
  • Morgan Stanley held an Overweight rating with a $300 target.
  • Other firms also adjusted higher, including Wells Fargo (to $274 from $214) and Clear Street (to $248 from $217). Analysts broadly cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power.

Shares, which closed at $147.79 on October 20, jumped roughly 8 percent in early premarket trading on October 21 as investors digested the results and the newly elevated Street targets.

The average analyst price target has moved higher, which reflects greater conviction in SpaceX’s trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.

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Elon Musk

Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for

Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.

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Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.

Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”

Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”

He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”

That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.

Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.

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Elon Musk gives his most telling Tesla-SpaceX merger conversation yet

Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.

SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.

Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.

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