Investor's Corner
Tesla crushes Q3 2019 results and returns to profitability
Tesla’s (NASDAQ:TSLA) third-quarter earnings for 2019 saw the electric car maker post $6.3 billion in revenue, meeting Wall Street estimates. The results, which were discussed at length in an Update Letter, were released after the closing bell on Wednesday, October 23.
The following are the key points in Tesla’s Q3 Update Letter.
EARNINGS
Tesla shareholders saw earnings per share of $1.91. In contrast, analysts polled by FactSet expected Tesla to report an adjusted quarterly loss of $0.46 a share for Q3 2019. Estimize, a crowdsourced platform that aggregates estimates from analysts, executives, fund managers, and academics, expected Tesla to report an adjusted loss of $0.29 per share.
REVENUE
Tesla reported revenue of $6.3 billion for the third quarter. Analysts polled by FactSet expected Tesla to report sales of $6.45 billion in the third quarter, while Estimize placed Tesla at a slightly more optimistic $6.60 billion.
Tesla Q3 results:
– Shanghai Giga ahead of schedule
– Model Y ahead of schedule
– Solar installs +48% from Q2
– GAAP profitable
– Positive free cash flow— Elon Musk (@elonmusk) October 23, 2019
RELATED: Top 5 things Tesla (TSLA) investors want to know from the Q3 2019 earnings call
Overall, Tesla’s results are a pleasant surprise for supporters of the electric car maker. Even CEO Elon Musk, after all, proved tempered with his expectations for the third quarter, stating during the second-quarter earnings call that he expects a small loss in Q3 2019. The company’s vehicle delivery figures in Q3 did not help this case, as the company was unable to meet Elon Musk’s internal goal of delivering 100,000 electric cars in the third quarter, delivering around 97,000 vehicles during the quarter.
TESLA MODEL Y PRODUCTION
Apart from its encouraging financials, Tesla also shared a number of optimistic updates for its vehicles and its budding Energy business. The Model Y, a crossover SUV that is expected to be even more popular than the widely-successful Tesla Model 3, has had its estimated deliveries move up to Summer 2020. During the vehicle’s unveiling, Musk proved conservative, giving an estimate of Fall 2020 (about a year from now) for the Model Y to begin customer deliveries.
GIGAFACTORY 3 PROGRESS
Tesla has also confirmed reports from China that Gigafactory 3 is progressing ahead of schedule. Previous reports from local media outlets have already hinted at this in recent months, and Tesla’s validation of these reports proved enough to shift the narrative back into the electric car maker’s favor.
“We are already producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai. We have cleared initial milestones toward our manufacturing license and are working towards finalizing the license and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai,” Tesla stated.
TESLA SOLAR
Tesla’s Energy business also showed some growth in the third quarter. Long dormant and tempered compared to the company’s electric vehicle business, Tesla Energy has long been considered by skeptics as a neglected project. This has changed in the third quarter, with Tesla Solar installs moving up 48% compared to Q2 2019’s figures. These installations are further bolstered by new initiatives relating to the company’s energy business, such as the introduction of the Megapack, a massive 3 MW battery that could prove to be as disruptive as Tesla’s electric cars.
TESLA SEMI and GIGAFACTORY EUROPE
Tesla has been quite thin on updates surrounding the Tesla Semi, having focused more on Model 3. In its Q3 Update Letter, Tesla revealed that its all-electric long-hauler is poised to begin production in late 2020. An official announcement about the location of Gigafactory 4 in Europe is also expected to be released in 2021. “We are planning to produce limited volumes of Tesla Semi in 2020 and are hoping to announce soon the location of our European Gigafactory for production in 2021,” Tesla wrote.
As of writing, Tesla stock is up 21.03% at $ 308.25 per share in Thursday’s after-hours trading.
Following is Tesla’s Q3 2019 Update Letter.
Tesla Q3’19 Update Letter by Simon Alvarez on Scribd
Investor's Corner
Tesla’s flying Roadster just revealed something bigger than the car
Analysts say the Roadster demo puts a Tesla and SpaceX merger back on the table.
The Roadster unveiling near Waco ended Thursday night, and by Friday morning much of the investor reaction had less to do with the car than with who owns the rocket technology inside it.
Wedbush analyst Dan Ives said the event “puts the Tesla/SpaceX relationship on the table in a tangible way,” pointing to the propulsion, pressure vessel and control hardware sitting on a Tesla product. Gene Munster of Deepwater Asset Management called the demo “a ridiculous display of engineering” with “no commercial value” beyond embarrassing traditional automakers, though he said it showed Musk wants the two companies together.
The more specific forecast came a day earlier from Barclays. Analyst Dan Levy told clients a deal could be announced before Tesla’s annual meeting, which must happen by December 6, and that an announcement in late October or early November could make shareholder approval harder. Barclays expects SpaceX to be the buyer in an all stock deal, with Tesla holders receiving SpaceX shares at a premium, based on market values of roughly $2.1 trillion for SpaceX and $1.5 trillion for Tesla. If nothing lands around the meeting, the bank still sees an announcement within 6 to 12 months.
The Roadster demo just added more weight to merger speculations. Tesla’s demo used cold gas thrusters and pressure tanks of the kind SpaceX uses on Falcon 9, and Musk described the car as a collaboration between Tesla and SpaceX engineers, as we mentioned in our breakdown of the three Roadster configurations.
Musk has not publicly addressed a deal since the event, as far as we have seen. His most direct answer remains the one he gave at the All In Summit, when he said that with so much collaboration, “who can imagine what action one might take” without ruling anything out. Ives has held to a 2027 timeline since his March note, and Musk pushed back on the China piece of the speculation when ARK floated a year end announcement in August.
The next test is Tesla’s third quarter earnings call on October 21. However, we recall in July that Musk told analysts, “we can’t talk about combining companies and that kind of thing on an earnings call,” so a clear answer wouldn’t be expected.
Elon Musk
Elon Musk breaks his silence on the Starlink impact to Ukraine drones
Musk says the US military and president set Starshield limits, not SpaceX, amid Ukraine complaints.
Elon Musk says the speed limit cutting out Ukraine’s military Starlink terminals is not SpaceX’s decision. In a post on X Wednesday, Musk wrote that “Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.” He added that Starlink is a commercial service limited to civilian or defensive activities and “cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.”
He was replying to Mykhailo Fedorov, Ukraine’s former defense minister, who had thanked Musk for restoring connectivity at speeds up to 160 km/h and said removing the Starshield limit entirely is “now critical for Ukraine’s defense.”
Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.
Starlink is a commercial service owned and controlled by SpaceX. Usage of Starlink is limited to civilian or defensive activities and cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.
— Elon Musk (@elonmusk) October 14, 2026
The complaint started Tuesday night, when Ukrainian officials said military terminals began losing service above roughly 100 mph. Presidential adviser Serhiy Beskrestnov said the defense forces got no warning and several missions were disrupted, as Teslarati reported earlier Wednesday. The 7th Rapid Reaction Corps told Reuters connections dropped for 10 to 20 seconds at speeds well below the limit, which made drones harder to control. Poland’s foreign minister, Radoslaw Sikorski, asked Musk on X whether he is “playing politics with your products again.”
That is why the Starlink and Starshield distinction matters. SpaceX introduced Starshield in 2022 as the government version of Starlink, with an initial focus on Earth observation, communications and hosted payloads. It won a Space Force contract in 2023 with a $70 million ceiling. In December 2024, the Pentagon moved Ukraine’s terminals onto Starshield, covering about 3,000 units across two contracts. Ukraine’s military connections therefore run through a service that Musk now says sits under Washington’s control.
While Musk’s post describes who holds authority, it does not infer that anyone ordered the limit, and neither SpaceX nor the US government has confirmed who set it. Ukrainian officials have pointed to the timing, which follows President Trump’s push for an energy ceasefire and Musk’s Saturday post that “Zelensky has gone too far.” The BBC noted Trump denied threatening to restrict intelligence sharing with Kyiv, and no evidence has been presented that Washington requested the cap.
The episode also revives a promise from 2025. After Poland accused him of threatening Ukraine’s access, Musk said Starlink “will never turn off its terminals” and would not be used as a bargaining chip. Poland has since supplied more than 29,000 terminals to Ukraine. Teslarati also covered Kyiv’s search for Starlink alternatives in 2025, and the latest dispute gives that search new urgency.
Investor's Corner
Tesla opens the Q&A for its biggest earnings call yet
Tesla opens its Q3 earnings Q&A, and Cybercab, Robotaxi, Optimus and regulators loom over October 21.
Tesla has opened its shareholder question portal for the Q3 2026 earnings call, with the Say Q&A page already listing questions. Investors have until 4:00 p.m. EDT on October 20 to submit and vote on what management should answer.
The call is set for Wednesday, October 21. Tesla will post results after the market closes, with a live webcast at 4:30 p.m. CT, or 5:30 p.m. ET, through its investor relations site.
Say ranks questions by the number of shares behind the votes, which gives institutional holders extra weight over the retail crowd.
Ahead of Q2, retail investors asked why Robotaxi growth had stalled, when Cybercab would start customer rides, and where the Optimus Gen 3 ramp stood, while an institutional holder asked how Tesla and SpaceX would split Terafab duties. Cybercab has since answered one of those. Tesla said last week it has 300 plus Cybercabs serving Austin, up eightfold in 30 days, with Dallas named as the next city. The questions now are likely to move from when to how fast.
There is also a regulatory question hanging over the call. NHTSA has demanded sworn answers on how the pedal free Cybercab was certified against federal safety standards, with responses due October 30, nine days after the call. Whether an analyst raises it live is unknown, but it is the kind of exposure that tends to find its way into a Q&A.
The numbers will not be the main draw. Tesla already reported 486,532 deliveries and 13.7 GWh of storage for the quarter. Consensus sits around 43 to 45 cents per share on roughly $27.8 billion in revenue, according to Zacks, after a Q2 report that missed on EPS. Goldman Sachs, which holds a Neutral rating and a $360 target, argues the outlook for Robotaxi, FSD and Optimus will matter more to the stock than the quarter itself.
The call also lands six days after the rescheduled Roadster event, which Tesla will stream on X on Thursday, October 15, at 7:55 p.m. CT. If the Roadster shows up with a production date or a SpaceX thruster package, expect it to climb the voting list before the deadline.