Tesla's continuing deficit in the second quarter results of 2018, 'Tesla Model 3' in surplus is key to profit improvement

by Steve Jurvetson

Tesla announced the second quarter settlement of accounts in 2018. According to the contents of the announcement, despite recording revenues of 4 billion dollars (about 440 billion yen), we posted a deficit of 3.06 dollars (about 330 yen) per share, and we have not achieved profitability . On the other hand, as Tesla Model 3 is in surplus, it seems that if the output of Model 3 increases, the deficit will be resolved in the future.

Tesla Second Quarter 2018 Update
(PDF) http://ir.tesla.com/static-files/7235e525-db16-470c-8dce-9ecac0ad7712

Tesla posts Q2 earnings: Revenue hits all-time high of $ 4 billion - BGR
https://bgr.com/2018/08/01/tesla-earnings-q2-2018-model-3/

Tesla is finally making money on the Model 3 - The Verge
https://www.theverge.com/2018/8/1/17639588/tesla-earning-q2-2018-model-3-production

Wall Street investors' forecasted content is "Revenues are about $ 3.39 billion (about 410 billion yen) and deficit about 2.9 dollars (about 300 yen) per share" exceeding forecasts for both revenue and deficit. In the second quarter settlement of 2017, the revenue was $ 2.79 billion (about 307 billion yen), the deficit was 1.33 dollars per share (about 150 yen), and Tesla has declined in deficit even if the profit increases There is no pattern.

Tesla has been suffering from the production delay of the Tesla Model 3 which was the main company of the company, and troubles such as not having the recommendation "after discovering problems in the brake in the product evaluation, it is quite smooth The time is difficult to say. Looking at the graph of Tesla's profit and loss, although the revenue has risen to the right, despite posting a slight surplus in the third quarter of 2016, it turns out that it is basically in the red I will.

Nevertheless, in the second quarter of 2018, model 3 production was said to have "slightly surplused". Tesla Model 3 is found to have a very high profit margin, and it is expected that Tesla's deficit will be canceled as the production volume stabilizes. In the final week of June 2018, the number of production per week has increased to 5000 units, and Tesla is setting up a mass production structure for Model 3.

It decomposed Tesla Model 3 apart, and as a result it turned out that the profit margin of Model 3 reaches as much as 30%

In August 2018, Tesla's official Twitter account tweeted, "Tesla Model 3 sales in the USA exceeded the sales of all other premium middle-sized sedans." According to the graph attached to the tweet, the share of sales that did not reach about a few percent in November 2017 rose steadily and accounted for 50% of the sales share of premium middle size sedan in July 2018 You can see that it was.

Model 3 now outsells all other premium mid-sized sedans in the US ..... combined pic.twitter.com/FhjKUGK58N

- Tesla (@ Tesla) August 1, 2018

Tesla says it plans to produce more than 6000 models 3 a week by the end of August 2018 and eventually aims to achieve production of 10,000 units per week. In the 2nd quarter of 2018, Tesla produced Model 3, which was 25,578 units, and said that it delivered 18,449 units.

In addition, Tesla has also announced that " We will allow games to be played on automotive display ", and announced that Atari 's retro game will be playable with touch panel operation.