Q3 2019 Update
Financial Summary 04
Operational Summary 06
Vehicle Capacity 07
Core Technology 08
Other Highlights 09
Outlook 10
Photos Charts 11
Financial Statements 22
Additional Information 27 H I G H L I G H T S
S U M M A R Y
Ca s h
$ 3 8 3 M in c re a s e in o u r c a s h a n d c a s h e q u iva le n t s b a la n c e t o $ 5 .3 B
$ 37 1M o p e ra t in g c a s h flo w le ss c a p e x (fre e c a s h flo w )
La st ye a r, o ur sto ry w a s a b o ut ra m p in g t he Mo d e l 3. W hile to t a l vo lum e s a re e xp e c te d to g ro w b y a p p roxim a te ly 50 % in
20 19 , t his ye a r o ur fo c us ha s b e e n co st co nt ro l a nd p re p a ring fo r o ur ne xt p ha se o f g ro w t h.
De sp ite re d uc t io ns in t he ave ra g e se llin g p rice (ASP) o f Mo d e l
3 a s g lo b a l m ix st a b ilize s, o ur g ro ss m a rg ins have st re ng t he n e d . Ad d it io na lly, o p e ra t in g e xp e nse s a re a t t he lo w e st le ve l since Mo d e l 3 p ro d u c t io n st a rte d . As a re sult , w e re turne d to GAAP p ro fit a b ilit y in Q 3 w hile g e ne ra t in g p o sit ive fre e c a sh flo w . This w a s p o ssib le b y re m o vin g sub st a nt ia l co st fro m o ur b usine ss.
P ro fit a b ilit y
$ 26 1M GAAP o p e ra t in g in c o m e ; 4 .1% o p e ra t in g m a rg in
$ 14 3 M GAAP n e t in c o m e ; $ 3 4 2 M n o n -GAAP n e t in c o m e e x-SBC
22.8 % GAAP Au t o m o t ive Gro ss Ma rg in
W e have a lso d ra m a t ic a lly im p ro ve d t he p a ce o f exe c ut io n a nd c a p it a l e ffic ie nc y o f ne w p ro d uc t io n line s. Gig a fa c to ry Sh a n g h a i w a s b uilt in 10 m o n t h s a n d is re a d y fo r p ro d u c t io n , w h ile it w a s
~6 5 % le ss e xp e n sive (ca p ex p e r unit o f c a p a c it y) to b uild t ha n o u r Mo d e l 3 p ro d u c t io n syste m in t he US. Co nt inue d vo lum e g ro w t h a nd co st co nt ro l a re a n im p o rt a nt co m b ina t io n fo r a c hie ving sust a ine d , ind ust ry-le a d in g p ro fit a b ilit y.
O p e ra t io n s
Gig a fa c to ry Sha ng ha i a he a d o f sc he d ule , t ria l p ro d uc t io n st a rte d
Mo d e l Y a he a d o f sc he d ule , p ro d uc t io n e xp e c te d b y sum m e r 20 20
Re co rd ve hic le p ro d uc t io n o f 9 6 k a nd d e live rie s o f 9 7k
Re co rd sto ra g e d e p lo ym e nt o f 4 77 MW h a nd 4 8 % so la r g ro w t h Q o Q
3F I N A N C I A L S U M M A R Y
(Un a u d ite d )
( $ in m illio n s , e xc e p t p e rc e n t a g e s a n d p e r s h a re d a t a ) Q o Q Yo Y
Aut o m o t ive re ve nue s 6 ,323 3,724 5,376 5,353 0 % -12%
Q 3 -2 0 18
6 ,0 9 9
Q 4 -2 0 18
Q 1-2 0 19
Q 2 -2 0 19
Q 3 -2 0 19
o f w hic h re g ula to ry c re d it s 21% -29 % 18 9 9 5 216 111 134
1,574 -22% 1,537 751 1,0 16 1,222 20 %
Aut o m o t ive g ro ss p ro fit
Aut o m o t ive g ro ss m a rg in 25.8 % 24 .3% 20 .2% 18 .9 % 22.8 % 39 3 b p -29 7 b p
To t a l re ve nue s 6 ,8 24 7,226 4 ,54 1 6 ,350 6 ,30 3 -1% -8 %
1,524 1,4 4 3 56 6 9 21 1,19 1 29 % -22%
To t a l g ro ss p ro fit
To t a l GAAP g ro ss m a rg in 22.3% 20 .0 % 12.5% 14 .5% 18 .9 % 4 39 b p -34 4 b p
O p e ra ting e xp e nse s 1,10 8 1,0 29 1,0 8 8 1,0 8 8 9 30 -15% -16 %
4 16 4 14 (522) (16 7) 26 1 256 % -37%
5.7% 6 .1% -11.5% -2.6 % 4 .1% 6 77 b p -19 6 b p
Inc o m e (lo ss) fro m o p e ra t io ns
O p e ra t ing m a rg in
EBITDA 9 4 2 8 9 7 (28 ) 371 8 76 136 % -7%
EBITDA m a rg in 13.8 % 12.4 % -0 .6 % 5.8 % 13.9 % 9 b p
8 0 6 b p
311 139 (70 2) 14 3 135% -54 %
34 4 516 (4 9 4 ) (19 8 ) 273% -34 % 34 2
(4 0 8 )
Ne t inc o m e (lo ss) a tt rib ut a b le t o c o m m o n st o c kho ld e rs (GAAP)
Ne t inc o m e (lo ss) a tt rib ut a b le t o c o m m o n st o c kho ld e rs (no n -GAAP)
EPS a tt rib ut a b le t o c o m m o n st o c kho ld e rs, b a sic (GAAP) 1.8 2 0 .8 1 (4 .10 ) (2.31) 0 .8 0 135% -56 %
EPS a tt rib ut a b le t o c o m m o n st o c kho ld e rs, b a sic (no n-GAAP) 2.0 0 (2.9 0 ) (1.12) 1.9 1 271% -37% 3.0 2
Ne t c a sh p ro vid e d b y (use d in) o p e ra t ing a c t ivit ie s 1,39 1 1,235 8 6 4 756 -13% -4 6 %
Ca p it a l e xp e nd it ure s (510 ) (325) (28 0 ) (250 ) (38 5) 54 % -25%
8 8 1 9 10 (9 20 ) 6 14 371 -4 0 % -58 %
(6 4 0 )
5,338 4 ,9 55 3,6 8 6 2,9 6 8 2,19 8 8 % 8 0 %
O p e ra ting c a sh flo w le ss c a p it a l e xp e nd it ure s
Ca sh a nd c a sh e q uiva le nt s
EPS = Ea rnin g s p e r sh a re
4F I N A N C I A L S U M M A R Y
Re ve n u e
Co m p a re d t o Q 3 o f 20 18 , t h e p e rc e n t a g e o f le a s e d ve h ic le s h a s t rip le d a n d a lo n e h a s im p a c t e d re ve n u e b y t h e m a jo rit y o f t h e Yo Y d e c re a s e . Mo d e l 3 m ix h a s in c re a s e d w h ile w e h a ve t a ke n a c t io n s le a d in g t o t h e re d u c t io n o f t h e ASP o f o u r p ro d u c t s . Th e s e ASP re d u c t io n s a re p a rt ic u la rly im p a c t e d b y t h e la u n c h o f t h e St a n d a rd Ra n g e t rim s o f Mo d e l 3 a n d p ric in g a c t io n s e a rlie r in t h e ye a r.
W e a re p o s it io n e d t o a c c e le ra t e o u r g ro w t h fu rt h e r t h ro u g h Gig a fa c t o ry Sh a n g h a i, Mo d e l Y a n d a ls o t h ro u g h in c re a s in g b u ild ra t e s o n o u r e xist in g p ro d u c t io n lin e s . Th e s e c a p a c it y in c re a s e s w ill a llo w fo r h ig h e r t o t a l ve h ic le d e live rie s a n d a ss o c ia t e d re ve n u e . W e a ls o e xp e c t t o g ra d u a lly re le a s e n e a rly $ 5 0 0 M o f a c c u m u la t e d d e fe rre d re ve n u e t ie d t o Au t o p ilo t a n d Fu ll Se lf Drivin g fe a t u re s .
P ro fit a b ilit y
GAAP Au t o m o t ive g ro ss m a rg in im p ro ve d b y 3 9 3 b p Q o Q t o 22.8 % (im p ro ve d b y 3 6 6 b p Q o Q e xc lu d in g re g u la t o ry c re d it s). Ma rg in w a s im p a c t e d in p a rt d u e t o fu n d a m e n t a l im p ro ve m e n t s in o u r o p e ra t in g e ffic ie n c y, in c lu d in g h ig h e r fixe d c o st a b s o rp t io n , re d u c t io n s in m a n u fa c t u rin g a n d m a t e ria l c o st s a n d c o n t in u e d im p ro ve m e n t s in ve h ic le q u a lit y a n d in p a rt d u e t o Sm a rt Su m m o n -re la t e d d e fe rre d re ve n u e re c o g n it io n , FX a n d o t h e r n o n -re c u rrin g it e m s . Im p ro ve d g ro ss p ro fit c o m b in e d w it h a d e c lin e in o p e ra t in g e xp e n s e s re s u lt e d in m a t e ria l im p ro ve m e n t o f GAAP n e t in c o m e .
Q u a rt e r e n d c a s h a n d c a s h e q u iva le n t s in c re a s e d t o $ 5 .3 B, d rive n b y p o s it ive fre e c a s h flo w o f $ 37 1M. No t e t h a t o p e ra t in g c a s h flo w s a re n e g a t ive ly im p a c t e d b y in c re a s e d a u t o m o t ive le a s in g m ix. Dra w s a g a in st o u r w o rkin g c a p it a l fa c ilit ie s , in c lu d in g le a s e s a w a it in g s e c u rit iz a t io n , a re in c lu d e d in fin a n c in g c a s h flo w s . Ca p e x in c re a s e d s e q u e n t ia lly d u e t o inve st m e n t s in Gig a fa c t o ry Sh a n g h a i a n d Mo d e l Y p re p a ra t io n s in
Fre m o n t .
Ca s h
5O P E R A T I O N A L
(Un a u d ite d )
S U M M A R Y
Q 3 -2 0 18 Q o Q Yo Y
26 ,9 0 3 25,16 1 14 ,16 3 14 ,517 16 ,318 12% -39 %
Q 4 -2 0 18
Q 1-2 0 19
Q 2 -2 0 19
Q 3 -2 0 19
Mo d e l S/ X p ro d uc t io n
Mo d e l 3 p ro d uc t io n 10 % 50 % 53,239 6 1,39 4 6 2,9 75 72,531 79 ,8 37
Mo d e l S/ X d e live rie s 27,710 27,6 0 7 12,0 9 1 17,722 17,4 8 3 -1% -37%
2,56 0 3,6 39 1,36 3 1,8 20 2,58 8 4 2% 1%
50 ,9 28 6 3,359 77,6 34 79 ,70 3 3% 4 2%
4 ,322 6 ,4 9 8 50 %
o f w hic h sub je c t t o le a se a c c o unt ing
Mo d e l 3 d e live rie s
56 ,0 6 5
o f w hic h sub je c t t o le a se a c c o unt ing
Glo b a l inve nt o ry (d a ys o f sa le s)(1) 18 17 -6 % 31 19 30 -4 5%
So la r d e p lo ye d (MW ) 9 3 73 4 7 29 4 3 4 8 % -54 %
24 0 225 229 4 15 4 77 15% 9 9 %
St o ra g e d e p lo ye d (MW h)
Re sid e nt ia l so la r c a sh lo a n (%) 76 % 75% 73% 70 % 6 9 % -10 0 b p -70 0 b p
St o re a nd Se rvic e lo c a t io ns 351 378 377 4 0 2 4 13 3% 18 %
Mo b ile se rvic e fle e t 373 4 11 550 6 51 719 10 % 9 3%
Su p e rc ha rg e r st a t io ns 1,352 1,4 21 1,4 9 0 1,58 7 1,6 53 4 % 22%
11,128 12,0 0 2 12,76 7 13,8 8 1 14 ,6 58 6 % 32%
20 ,6 52 21,54 1 22,39 9 23,16 0 23,9 0 6 3% 16 %
Su p e rc ha rg e r c o nne c t o rs
De st ina tio n c ha rg ing c o nne c t o rs
In Q3, we we re ab le to d e live r ne arly as m any Mo d e l 3 ve hicle s as we we re ab le to p ro d uce .
Our Se rvice ne two rk co ntinue d to exp and in Q3. Re d ucing waiting tim e s and im p roving se rvice exp e rie nce are o ur to p p rio ritie s. We o p e ne d 11 new se rvice ce nte rs in Q3 and ad d e d 6 8 Mo b ile Se rvice ve hicle s to o ur fle e t.
Our finishe d ve hicle inve nto ry leve ls re ache d just 17 d ays o f sale s(1) at the e nd o f Q3, the lowe st leve l o f the p ast 3.5 ye ars and 4 x lowe r than ind ustry ave rag e . Since o ur state d inve nto ry leve ls includ e ve hicle s in transit and sto re ve hicle s, the true num b e r o f se llab le inve nto ry is m ate rially lowe r.
1 Th e in d ustry re fe re n ce fo r d a ys o f sa le s is c a lc u la te d b y d ivid in g n e w c a r inve n to ry b y th e t ra iling fo u r q ua rte rs o f d e live rie s a nd using 26 1 w o rking d a ys (so urce : Auto m o t ive Ne w s).
6
F re m o n t
In s t a lle d An n u a l Ca p a c it y
Cu rre n t
St a t u s
Fre m o nt
Mo d e l S/ X
9 0 ,0 0 0
Pro d uc t io n
Mo d e l Y e q u ip m e n t in st a lla t io n is u n d e rw a y in a d va n c e o f t h e p la n n e d la u n c h n e xt ye a r. W e a re m o vin g fa ste r t h a n in it ia lly p la n n e d , u sin g le a rn in g s a n d e ffic ie n c ie s g a in e d fro m o u r Gig a fa c to ry Sh a n g h a i fa c to ry d e sig n .
Mo d e l 3
350 ,0 0 0
Pro d uc t io n
Mo d e l Y -
Mo d e l 3
Co nst ruc t io n
Pre -p ro d uc t io n
-In d e ve lo p m e nt
-In d e ve lo p m e nt
-In d e ve lo p m e nt
-In d e ve lo p m e nt
-In d e ve lo p m e nt
-In d e ve lo p m e nt
Sh a ng ha i
Eu ro p e
150 ,0 0 0
Ca p e x p e r u n it o f c a p a c it y is fo re c a ste d to b e a b o u t 5 0 % lo w e r t h a n o u r c u rre n t Mo d e l 3 p ro d u c t io n syste m in t h e Un ite d St a te s.
Mo d e l Y
Mo d e l 3
Sh a n g h a i
Mo d e l Y
Te s la Se m i
Ro a d s t e r
P ic ku p t ru c k
Unit e d St a te s
W e a re a lre a d y p ro d u c in g fu ll ve h ic le s o n a t ria l b a sis, fro m b o d y, to p a in t a n d to g e n e ra l a sse m b ly, a t Gig a fa c to ry Sh a n g h a i. W e h a ve c le a re d in it ia l m ile sto n e s to w a rd o u r m a n u fa c t u rin g lic e n se a n d a re w o rkin g to w a rd s fin a lizin g t h e lic e n se a n d m e e t in g o t h e r g o ve rn m e n t a l re q u ire m e n t s b e fo re w e b e g in ra m p in g p ro d u c t io n a n d d e live ry o f ve h ic le s fro m Sh a n g h a i.
So urce : IHS d a t a Te sla e st im a te s
6 0 0 ,0 0 0
50 0 ,0 0 0
4 0 0 ,0 0 0
30 0 ,0 0 0
20 0 ,0 0 0
10 0 ,0 0 0
0
Ch in a is b y fa r t h e la rg e st m a rke t fo r m id -size d p re m iu m se d a n s. W it h Mo d e l
3 p ric e d o n p a r w it h g a so lin e p o w e re d m id -size d se d a n s (e ve n b e fo re g a s sa vin g s a n d o t h e r b e n e fit s), w e b e lie ve Ch in a c o u ld b e c o m e t h e b ig g e st m a rke t fo r Mo d e l 3 .
Eu ro p e
W e a re in t h e fin a l st a g e s o f o u r site se le c t io n p ro c e ss. O u r Eu ro p e a n
Gig a fa c to ry is e xp e c te d to p ro d u c e b o t h Mo d e l 3 a n d Mo d e l Y.
US/ Ca na d a Euro p e Ch ina Ro W
Glo b a l m id -s ize d p re m iu m s e d a n s a le s 2 0 18
7
Au t o p ilo t F u ll Se lf Driv in g
In Se p te m b e r, w e la u n c h e d Sm a rt Su m m o n in t h e US w h ic h h a s b e e n u se d m o re t h a n o n e m illio n t im e s to d a te . Th is fu n c t io n a lit y a llo w s c a r o w n e rs to su m m o n t h e ir c a rs fro m u p to 20 0 fe e t in a p a rkin g lo t o r d rive w a y. O u r n e u ra l n e t w o rk le a rn in g a p p ro a c h e n a b le s u s to c o n t in u e to ite ra te a n d im p ro ve fu n c t io n a lit y o ve r t im e .
Du rin g Q 3 , w e re g iste re d o n e a c c id e n t fo r e ve ry 4 .3 4 m illio n m ile s d rive n in w h ic h d rive rs h a d Au to p ilo t e n g a g e d . Th is c o m p a re s to t h e n a t io n a l a ve ra g e o f o n e a c c id e n t fo r e ve ry 0 .5 m illio n m ile s b a se d o n NHTSA's m o st re c e n t US d a t a .
Ve h ic le So ft w a re
In Se p te m b e r, w e re le a se d o u r la te st a n d m o st sig n ific a n t ve h ic le so ft w a re u p d a te ye t , c a lle d V10 . Th is u p d a te in t ro d u c e d st re a m in g vid e o (i.e ., Yo u Tu b e , Ne t flix, Hu lu , vid e o t u to ria ls), Sp o t ify, Ca ra o ke (i.e ., in -c a r ka ra o ke ), a d d it io n a l g a m e s, im p ro ve d se a rc h a n d o t h e r fu n c t io n a lit ie s. Th is ve rsio n o f o u r in fo t a in m e n t syste m c o n t in u e s to le a d t h e in d u st ry a n d la ys a n im p o rt a n t fo u n d a t io n fo r t h in g s to c o m e .
V10 s o ft w a re u p d a t e w it h Sm a rt Su m m o n
* EPA a nd Te sla e st im a te s b a se d o n W LTP
4 0 0
35 0
30 0
25 0
20 0
150
10 0
50
P o w e rt ra in
In a d d it io n to la u n c h in g lo n g e r-ra n g e ve rsio n s o f t h e Mo d e l S a n d Mo d e l X in Ap ril, w e h a ve b e e n a b le to in c re a se t h e EPA ra n g e o f t h e Mo d e l 3 St a n d a rd Ra n g e Plu s fro m 24 0 m ile s to 25 0 m ile s. W e a c c o m p lis h e d t h e se im p ro ve m e n t s b y m o re e ffic ie n t e n e rg y u se ra t h e r t h a n a c o st ly in c re a se to t h e b a t te ry size .
0
O u r c u rre n t sh o rte st -ra n g e ve h ic le is o n p a rit y w it h t h e lo n g e st -ra n g e p ro d u c t io n
EVs o ffe re d b y o t h e r co m p a n ie s . Lo n g -ra n g e m o d e ls o f e a c h Mo d e l S, X a n d 3 c o n t in u e to h a ve 20 -4 0 % h ig h e r ra n g e t h a n a ny o t h e r EV a va ila b le .
EPA ra n g e in m ile s
8
H I G H L I G H T S
Me g a p a c k - 3 MW h b a t t e ry
En e rg y
En e rg y sto ra g e d e p lo ym e n t re a c h e d a n a ll-t im e h ig h o f 4 77 MW h in Q 3 . Ad d it io n a lly, w e h a ve re c e n t ly in t ro d u c e d Te sla Me g a p a c k a 3 MW h b a t te ry p a c k, p re a sse m b le d a t t h e Gig a fa c to ry a s a sin g le u n it . Su c h p a c ka g in g a llo w s fo r fa ste r d e p lo ym e n t a n d lo w e r o ve ra ll in st a lla t io n c o st . First d e live rie s a re p la n n e d to b e g in in
Q 4 20 19 .
W e a lso la u n c h e d a c o m m e rc ia l so la r c o n fig u ra to r fo r sm a ll a n d m e d iu m e n te rp rise s, w it h st a n d a rd ize d a n d t ra n sp a re n t p ric in g . So la r d e p lo ym e n t s h a ve st a rte d to g ro w se q u e n t ia lly o n c e a g a in . In Q 3 , w e d e p lo ye d 4 3 MW o f so la r, 4 8 % m o re t h a n in t h e p rio r q u a rte r.
Te s la In s u ra n c e
In Au g u st , w e la u n c h e d Te sla In su ra n c e fo r Ca lifo rn ia c u sto m e rs, e n a b lin g m a ny c u sto m e rs to re d u c e in su ra n c e c o st s b y u p to 20 -3 0 %. Th is to t a l c o st o f o w n e rsh ip a p p ro a c h is a n im p o rt a n t ste p to m a ke o u r c a rs m o re a ffo rd a b le . Sin c e la u n c h in g t h is p ro d u c t , w e h a ve se e n st ro n g in te re st fro m o u r n e w a n d e xist in g c u sto m e rs in
Ca lifo rn ia a n d a re w o rkin g to e xp a n d in su ra n c e in to a d d it io n a l m a rke t s.
9O U T L O O K
Ve h ic le De live rie s
De live rie s s h o u ld in c re a s e s e q u e n t ia lly a n d a n n u a lly, w it h s o m e e xp e c t e d flu c t u a t io n s fro m s e a s o n a lit y. W e a re h ig h ly c o n fid e n t in e xc e e d in g 3 6 0 ,0 0 0 d e live rie s t h is ye a r.
Ca s h F lo w
P ro fit a b ilit y
P ro d u c t
Po s it ive q u a rt e rly fre e c a s h flo w g o in g fo rw a rd , w it h p o ss ib le t e m p o ra ry e xc e p t io n s , p a rt ic u la rly a ro u n d t h e la u n c h a n d ra m p o f n e w p ro d u c t s . W e c o n t in u e t o b e lie ve o u r b u s in e ss h a s g ro w n t o t h e p o in t o f b e in g s e lf fu n d in g .
Po sit ive GAAP ne t inco m e g o in g fo rw a rd , w it h p o ss ib le t e m p o ra ry e xc e p t io n s , p a rt ic u la rly a ro u n d t h e la u n c h a n d ra m p o f n e w p ro d u c t s . Co nt inuo us vo lum e g ro w t h, c a p a c it y e xp a nsio n , a nd c a sh g e ne ra t io n re m a in t he m a in fo c us.
Tria l p ro d u c t io n o f Mo d e l 3 in Sh a ng ha i ha s b e g un , a he a d o f sc he d ule . W e a re a lso a he a d o f sc he d u le to p ro d uc e
Mo d e l Y a nd no w e xp e c t to la unc h b y sum m e r 20 20 . W e a re p la nn in g to p ro d uc e lim ite d vo lum e s o f Te sla Se m i in 20 20 a nd a re ho p in g to a nno u nc e so o n t he lo c a t io n o f o ur Eu ro p e a n Gig a fa c to ry fo r p ro d u c t io n in 20 21.
10 P H O T O S C H A R T S
11
12
13 G I G A F A C T O R Y S H A N G H A I B O D Y S H O P
14 G I G A F A C T O R Y S H A N G H A I B O D Y S H O P
15 G I G A F A C T O R Y S H A N G H A I P A I N T S H O P
16 G I G A F A C T O R Y S H A N G H A I G E N E R A L A S S E M B L Y
17 G I G A F A C T O R Y S H A N G H A I E X T E R I O R
18 G I G A F A C T O R Y S H A N G H A I 1 0 M O N T H S F R O M G R O U N D B R E A K I N G T O P R O D U C T I O N R E A D Y
J a n u a ry 2 0 19
O c t o b e r 2 0 19
19 K E Y M E T R I C S Q U A R T E R L Y
(Un a u d ite d )
10 0 ,0 0 0 1.5 0 .8
9 0 ,0 0 0
8 0 ,0 0 0
70 ,0 0 0
6 0 ,0 0 0
50 ,0 0 0 0 .0 0 .0
4 0 ,0 0 0
30 ,0 0 0
20 ,0 0 0
10 ,0 0 0
1.0
0 .6
0 .4
0 .5
-0 .5
-1.0
0 .2
-0 .2
-0 .4
-0 .6
0-1.5 -0 .8
O p e ra t in g c a s h flo w ( $ B)
O p e ra t in g c a s h flo w le s s c a p e x ( $ B)
Ve h ic le De live rie s ( u n it s )
Ne t In c o m e ( $ B)
20 K E Y M E T R I C S T R A I L I N G 1 2 M O N T H S ( T T M )
(Un a u d ite d )
35 0 ,0 0 0 5.0 3.0
30 0 ,0 0 0
250 ,0 0 0
20 0 ,0 0 0
15 0 ,0 0 0
10 0 ,0 0 0
50 ,0 0 0
2.0
4 .0
3.0
2.0
1.0
1.0
-1.0
-2.0
-3.0
-4 .0
0 .0 0 .0
-1.0
-2.0
0-5.0 -3.0
O p e ra t in g c a s h flo w ( $ B)
O p e ra t in g c a s h flo w le s s c a p e x ( $ B)
Ve h ic le De live rie s ( u n it s )
Ne t In c o m e ( $ B)
21 F I N A N C I A L S T A T E M E N T S
2 2 S T A T E M E N T O F O P E R A T I O N S
(Un a u d ite d )
Thre e m o n th s e nd e d
Nine m o n ths e nd e d
Se p 30 , 20 19
Se p 30 , 20 19
J une 30 , 20 19
Se p 30 , 20 18
Se p 30 , 20 18
In m illio n s o f USD o r s h a re s a s a p p lic a b le , e xc e p t p e r s h a re d a t a REVEN UES
5,132 5,16 8 5,8 78 13,8 0 9 11,558
221 20 8 221 6 4 4 6 34
Au t o m o t ive s a le s
Au t o m o t ive le a s in g
36 9
5,353 5,376 6 ,0 9 9 14 ,4 53 12,19 2
4 0 2 39 9 1,0 9 5 1,18 3
To t a l a u t o m o t ive re ve n u e
En e rg y g e n e ra t io n a n d s t o ra g e
54 8 1,6 4 6 6 0 5 327 8 6 0
Se rvic e s a n d o t h e r
6 ,30 3 17,19 4 6 ,8 24 14 ,23 5
6 ,350
To t a l re ve n u e s
CO S T O F REVEN UES
4 ,0 14 4 ,254 11,124 9 ,0 27
4 ,4 0 6
117 10 6 119 34 0 36 1
Au t o m o t ive s a le s
Au t o m o t ive le a s in g
4 ,131 4 ,36 0 4 ,525 11,4 6 4 9 ,38 8
326 330
314 9 56 1,0 36
To t a l a u t o m o t ive c o s t o f re ve n u e s
En e rg y g e n e ra t io n a n d s t o ra g e
6 6 7 1,212 74 3 4 4 5 2,0 9 6
1,524 9 21 1,19 1 2,6 78 2,59 9
Se rvic e s a n d o t h e r
5,4 29 5,112 14 ,516 5,30 0 11,6 36
To t a l c o s t o f re ve n u e s
Gro s s p ro fit
O P ERATING EXP EN S ES
59 6 6 4 7 730 1,9 4 7 2,16 7
334 324 351 9 9 8 1,10 4
117 27 16 1 130
Re s e a rc h a n d d e ve lo p m e n t
Se llin g , g e n e ra l a n d a d m in is t ra t ive
Re s t ru c t u rin g a n d o t h e r
9 30 1,0 8 8 1,10 8 3,10 6 3,4 0 1
26 1 (16 7) 4 16 (4 28 ) (8 0 2)
15 10 734 17
To t a l o p e ra t in g e xp e n s e s
INCO ME ( LO S S ) F RO M O P ERATIO NS
In t e re s t in c o m e
8 5 (4 1) 23 70 36
(18 5) (172) (175) (515)
(4 8 8 )
In t e re s t e xp e n s e
O t h e r in c o m e (e xp e n se ), n e t
176 (370 ) 271 (8 39 ) (1,237)
26 19 17 6 8 36
INCO ME ( LO S S ) BEF O RE IN C O ME TAXES
P ro vis io n fo r in c o m e t a xe s
150 (38 9 ) 254 (9 0 7) (1,273)
719 (57) 6 0 (157)
N ET INCO ME ( LO S S )
Ne t in c o m e (lo ss) a t t rib u t a b le t o n o n c o n t ro llin g in t e re s t s a n d re d e e m a b le n o n c o n t ro llin g in t e re s t s
14 3 311 (1,116 ) (9 6 7)
(4 0 8 )
N ET IN C O ME ( LO S S ) ATTRIBUTABLE TO C O MMO N S TO C KHO LDERS
Ne t in c o m e (lo s s ) p e r s h a re o f c o m m o n s t o c k a t t rib u t a b le t o c o m m o n s t o c kh o ld e rs
0 .8 0 (2.31) 1.8 2 (5.54 ) (6 .56 )
0 .78 (2.31) 1.75 (5.54 ) (6 .56 )
Ba s ic
Dilu t e d
W e ig h t e d a ve ra g e s h a re s u s e d in c o m p u t in g n e t in c o m e (lo s s ) p e r s h a re o f c o m m o n s t o c k
18 4 177 178 176 170
179 177 171 176 170
Ba s ic
Dilu t e d
2 3 B A L A N C E S H E E T
(Un a u d ite d )
Se p 30 , 20 18
De c 31, 20 18
Ma rc h 31, 20 19
J une 30 , 20 19
Se p 30 , 20 19
In m illio ns o f USD
ASSETS
Curre nt a sse ts
Ca sh a nd c a sh e q uiva le nts 2,9 6 8 3,6 8 6 2,19 8 4 ,9 55 5,338
Re st ric te d c a sh 159 19 3 131 128 233
Ac c o unts re c e iva b le , ne t 1,155 9 4 9 1,0 4 7 1,14 7 1,128
Pre p a id e xp e nse s a nd o t he r c u rre n t a sse ts 324 36 6 4 6 5 570 6 6 0
To t a l c urre n t a sse ts 7,9 20 8 ,30 7 7,6 78 10 ,18 2
Inve nto ry 3,314 3,113 3,8 37 3,38 2 3,58 1
2,18 6 2,0 9 0 1,9 73 2,0 70 2,253
6 ,30 2 6 ,271 6 ,24 2 6 ,20 1 6 ,16 8
11,24 6 11,330 9 ,8 51 10 ,19 0
10 ,0 8 2
350 357 34 8 4 8 1 537
10 ,9 4 0
1,253 1,24 8 1,23 4
O p e ra ting le a se ve hic le s, ne t
So la r e ne rg y syste m s, ne t
Pro p e rty, p la nt a nd e q uip m e n t, n e t
O p e ra ting le a se rig ht -o f-use a sse ts
Go o d w ill a nd inta ng ib le a sse ts, n e t
MyPo w e r c usto m e r no te s re c e iva b le , n e t o f c u rre n t p o rtio n 4 23 4 22 4 13 4 0 0 39 8
Re st ric te d c a sh , ne t o f c urre nt p o rtio n 39 7 39 8 354 36 6 255
O the r a sse ts 8 0 1 8 4 3 8 20 4 32 572
To t a l a sse ts
2 9 ,2 6 3
2 9 ,7 4 0
2 8 ,9 13
3 1,8 7 3
3 2 ,7 9 5
LIABILITIES AND EQ UITY
Curre nt lia b ilitie s
Ac c o unts p a ya b le 3,59 7 3,4 0 5 3,24 9 3,134 3,4 6 8
Ac c rue d lia b ilitie s a nd o t he r 1,9 9 0 2,0 9 4 2,277 2,6 23 2,4 9 7
De fe rre d re ve nue 571 6 30 76 3 8 8 4 1,0 4 5
Re sa le va lue g ua ra nte e s 4 4 1 6 0 5 50 3 4 8 0 527
Custo m e r d e p o sits 9 0 6 79 3 76 8 6 31 6 6 5
Curre nt p o rtio n o f lo ng -te rm d e b t a n d fina n c e le a se s (1) 2,10 7 2,56 8 1,70 6 1,79 1 2,0 30
To t a l c urre n t lia b ilitie s 9 ,776 9 ,24 3 9 ,59 0 10 ,14 6
Lo n g -te rm d e b t a nd fina nc e le a se s, n e t o f c u rre n t p o rtio n (1) 9 ,6 73 9 ,78 8 11,23 5 11,313
De fe rre d re ve nue , ne t o f c urre n t p o rtio n 9 50 9 9 1 1,157 1,18 2 1,14 0
Re sa le va lue g ua ra nte e s, ne t o f c u rre n t p o rtio n 6 1 4 56 329 211 38
O the r lo ng -te rm lia b ilitie s 2,6 56 2,555 2,710 2,4 76 2,6 76
To t a l lia b ilitie s
Re d e e m a b le no nc o ntro lling inte re sts in sub sid ia rie s 58 0 551 556 570 6 0 0
To t a l sto c kh o ld e rs' e q uity 4 ,50 9 4 ,9 23 5,715
9 ,9 9 3
9 ,4 0 4
2 4 ,7 2 4
2 3 ,4 10
2 3 ,4 2 7
79 3 8 34 8 6 2 8 4 2 8 54
2 2 ,8 7 5
4 ,6 0 6
2 5 ,3 13
6 ,0 4 0
3 1,8 7 3
No nc o ntro lling inte re sts in su b sid ia rie s
To t a l lia b ilitie s a nd e q uity
2 9 ,2 6 3
2 9 ,7 4 0
2 8 ,9 13
3 2 ,7 9 5
(1) Bre a kd o w n o f o ur d e b t is a s fo llo w s:
Re c o u rse d e b t 7,251 7,0 8 1 6 ,517 7,8 13 7,8 8 2
3,24 8 3,552 3,4 8 6 3,553 3,8 57
No n -re c o urse d e b t
2 4 S T A T E M E N T O F C A S H F L O W S
(Un a u d ite d )
Thre e m o n th s e nd e d
Nine m o n ths e nd e d
Se p 30 , 20 19 Se p 30 , 20 18
In m illio ns o f USD
Se p 3 0 , 20 19
J une 30 , 20 19
Se p 30 , 20 18
Ca s h F lo w s fro m O p e ra t in g Ac t ivit ie s
Ne t inc o m e (lo ss) 150 (38 9 ) 254 (9 0 7) (1,273)
Ad ju stm e n ts to re c o nc ile ne t inc o m e (lo ss) to n e t c a sh p ro vid e d b y o p e ra ting a c tivitie s:
De p re c ia tio n , a m o rtiza t io n a n d im p a irm e n t 530 579 50 3 1,577 1,4 0 4
St o c k-b a se d c o m p e nsa tio n 19 9 210 20 5 6 17 54 4
O p e ra ting c a sh flo w re la te d to re p a ym e n t o f d isc o u nte d c o n ve rtib le n o te s (18 8 )
O th e r 4 6 1 6 8 177 78 329
(19 1) 28 7 351 (14 1) (58 0 )
756 8 6 4 8 6 3 9 8 0 1,39 1
Cha n g e s in o p e ra ting a sse ts a n d lia b ilitie s, n e t o f e ffe c t o f b u sin e ss c o m b in a tio ns
Ne t c a sh p ro vid e d b y o p e ra ting a c tivitie s
Ca s h F lo w s fro m In ve s t in g Ac t ivit ie s
Ca p ita l e xp e nd iture s (38 5) (250 ) (510 ) (9 15) (1,776 )
(25) (18 ) (50 ) (6 8 ) (18 9 )
Pa ym e nts fo r the c o st o f so la r e n e rg y syste m s, n e t
Purc ha se o f inta ng ib le a sse ts (5) (5)
Busine ss c o m b ina tio ns, ne t o f c a sh a c q u ire d (76 ) 32 (1) (4 5) (7)
Ne t c a sh use d in inve sting a c tivitie s (24 1) (56 1) (1,0 33) (1,9 72)
(4 8 6 )
Ca s h F lo w s fro m F in a n c in g Ac t ivit ie s
Ne t c a sh flo w s fro m d e b t a c tivitie s (19 ) 1,34 9 (19 6 ) 8 12 221
(8 3) (8 5) (14 3) (30 2) (34 3)
14 7 35 115 14 9 4 0 3
Co lla te ra lize d le a se re p a ym e n ts
Ne t b o rro w ing s und e r W a re ho use Ag re e m e n ts a n d a u to m o t ive a sse t -b a c ke d n o te s
Ne t c a sh flo w s fro m no nc o ntro llin g inte re sts - Au to 74 30 19 17 16
Ne t c a sh flo w s fro m no nc o ntro llin g inte re sts - So la r (28 ) (4 1) 27 (8 2) 111
Pro c e e d s fro m issu a nc e s o f c o m m o n sto c k in p u b lic o ffe ring s 8 4 8 8 4 8
71 O the r 18 16 7 9 5 220
Ne t c a sh p ro vid e d b y (use d in) fina n c in g a c tivitie s 6 8 6 118 2,14 3 (8 5) 1,6 0 8
Effe c t o f e xc ha ng e ra te c ha ng e s o n c a sh a n d c a sh e q u iva le n ts a nd re stric te d c a sh (12) 1(6 ) (6 ) (19 )
Ne t inc re a se (d e c re a se ) in c a sh a n d c a sh e q u iva le n ts a n d re stric te d c a sh 376 739 1,54 9 (4 4 2) 2,76 7
Ca sh a n d c a sh e q uiva le nts a n d re stric te d c a sh a t b e g inn in g o f p e rio d 4 ,277 3,9 6 5 2,6 8 3 5,4 50 2,78 3
Ca sh a n d c a sh e q uiva le nts a n d re stric te d c a sh a t e n d o f p e rio d 5,8 26 3,523 5,4 50 5,8 26 3,522
2 5 R E C O N C I L I A T I O N O F G A A P T O N O N G A A P F I N A N C I A L I N F O R M A T I O N
(Un a u d ite d )
Thre e m o n ths e nd e d
Nine m o n ths e nd e d
Se p 30 , 20 19 Se p 30 , 20 18
In m illio n s o f USD o r s h a re s a s a p p lic a b le , e xc e p t p e r s h a re d a t a Se p 30 , 20 19
J une 30 , 20 19
14 3 (4 0 8 ) 311 (9 6 7) (1,116 )
Se p 30 , 20 18
Ne t in c o m e ( lo s s ) a t t rib u t a b le t o c o m m o n s t o c kh o ld e rs GAAP
St o c k-b a se d c o m p e nsa tio n e xp e n se
210 19 9 20 5 6 17 54 4
Ne t in c o m e ( lo s s ) a t t rib u t a b le t o c o m m o n s t o c kh o ld e rs n o n -GAAP
34 2 516 (19 8 ) (350 ) (572)
Ne t in c o m e ( lo s s ) p e r s h a re a t t rib u t a b le t o c o m m o n s t o c kh o ld e rs , b a s ic GAAP
St o c k-b a se d c o m p e nsa tio n e xp e n se
0 .8 0 (2.31) 1.8 2 (5.54 ) (6 .56 )
1.11 1.19 1.20 3.51 3.20
Ne t in c o m e ( lo s s ) p e r s h a re a t t rib u t a b le t o c o m m o n s t o c kh o ld e rs , b a s ic n o n -GAAP
1.9 1 3.0 2 (1.12) (2.0 3) (3.36 )
179 171 177 176 170
Sh a re s u s e d in p e r s h a re c a lc u la t io n , b a s ic
GAAP a n d n o n -GAAP
Ne t in c o m e ( lo s s ) p e r s h a re a t t rib u t a b le t o c o m m o n s t o c kh o ld e rs , d ilu t e d GAAP
St o c k-b a se d c o m p e nsa tio n e xp e n se
0 .78 (2.31) 1.75 (5.54 ) (6 .56 )
1.0 8 1.19 1.15 3.51 3.20
Ne t in c o m e ( lo s s ) p e r s h a re a t t rib u t a b le t o c o m m o n s t o c kh o ld e rs , d ilu t e d - n o n -GAAP
Sh a re s u s e d in p e r s h a re c a lc u la t io n , d ilu t e d - GAAP a n d n o n -GAAP
1.8 6 (1.12) 2.9 0 (2.0 3) (3.36 )
18 4 177 178 176 170
Ne t in c o m e ( lo s s ) GAAP
In te re st inc o m e
150 (38 9 ) 254 (9 0 7) (1,273)
(15) (10 ) (7) (34 ) (17)
In te re st e xp e nse
18 5 172 515 175 4 8 8
Pro visio n fo r inc o m e ta xe s
De p re c ia tio n, a m o rtiza t io n a n d im p a irm e n t
EBITDA - n o n -GAAP
26 19 17 6 8 36
530 579 50 3 1,577 1,4 0 4
371 8 76 9 4 2 1,219 6 38
6 ,350 6 ,30 3 6 ,8 24 17,19 4 14 ,23 5
To t a l re ve nue s
13.9 % 13.8 % 7.1% 5.8 % 4 .5%
(1)
EBITDA m a rg in - n o n -GAAP
Au t o m o t ive g ro s s m a rg in GAAP 22.8 % 18 .9 % 25.8 % 20 .7% 23.0 %
To t a l re g ula to ry c re d it re ve n ue re c o g n ize d -2.0 % -1.7% -2.4 % -2.6 % -5.4 %
Au t o m o t ive g ro s s m a rg in e xc lu d in g re g u la t o ry c re d it s 20 .8 % 17.2% 23.4 % 18 .1% 17.6 %
n o n -GAAP
In m illio ns o f USD 1Q -20 17 2Q -20 17 3Q -20 17 1Q -20 18 2Q -20 18 3Q -20 18 1Q -20 19 2Q -20 19 3Q -20 19
4 Q -20 16
GAAP (4 4 8 ) (70 ) (20 0 ) 510 (39 8 ) 1,39 1 8 6 4 756 (30 1) (130 ) 1,23 5
4 Q -20 17
4 Q -20 18
Ne t c a s h ( u s e d in ) p ro vid e d b y o p e ra t in g a c t ivit ie s
Ca p ita l e xp e nd iture s (1,116 ) (6 10 ) (325) (28 0 ) (522) (553) (9 59 ) (78 7) (6 56 ) (510 ) (250 ) (38 5)
(1,0 54 ) (1,159 ) (9 70 ) (277) (6 23) (1,4 17) (74 0 ) 9 10 (9 20 ) 8 8 1 6 14 371
(6 4 0 )
O p e ra t in g c a s h flo w le s s c a p it a l e xp e n d it u re s n o n -GAAP
Ne t c a s h ( u s e d in ) p ro vid e d b y o p e ra t in g a c t ivit ie s - TTM GAAP (124 ) 56 (29 4 ) (1,0 19 ) (6 1) (38 9 ) (319 ) 1,373 2,0 9 8 1,8 56 2,8 50 2,215
Ca p ita l e xp e nd iture s TTM (1,28 2) (1,6 18 ) (2,28 2) (3,150 ) (3,4 15) (3,518 ) (3,16 9 ) (2,56 3) (2,10 1) (1,725) (1,36 5) (1,24 0 )
(1,4 0 6 ) (1,56 2) (2,576 ) (3,4 76 ) (3,9 0 7) (1,19 0 ) (3) 131 1,4 8 5 9 75
(4 ,16 9 )
(3,4 8 8 )
O p e ra t in g c a s h flo w le s s c a p it a l e xp e n d it u re s - TTM n o n -GAAP
1 EBITDA m a rg in is EBITDA a s a p e rce nta g e o f To t a l re ve nue s
2 6 A D D I T I O N A L I N F O R M A T I O N
W EBCAST INF O RMATIO N
Te sla w ill p ro vid e a live w e b c a st o f it s t h ird q u a rte r 20 19 fin a n c ia l re su lt s co nfe re nce c a ll b e g inn in g a t 3:30 p .m . PT o n O c to b e r 23, 20 19 , a t ir.te sla .co m . Th is w e b c a st w ill a lso b e a va ila b le fo r re p la y fo r a p p roxim a te ly o ne ye a r t h e re a fte r.
NO N-GAAP F INANCIAL INF O RMATIO N
Co nso lid a te d fin a n c ia l in fo rm a t io n h a s b e e n p re se nte d in a cco rd a n ce w it h GAAP a s w e ll a s o n a n o n -GAAP b a sis to su p p le m e n t o ur c o nso lid a te d fin a n c ia l re su lt s. O u r n o n -GAAP fin a n c ia l m e a su re s inc lu d e n o n -GAAP a u to m o t ive g ro ss m a rg in , no n -GAAP ne t in co m e (lo ss) a t t rib u t a b le to co m m o n sto c kh o ld e rs, n o n -GAAP n e t in co m e (lo ss) a t t rib u t a b le to co m m o n sto c kh o ld e rs o n a p e r sh a re b a sis, e a rn in g s b e fo re in te re st , t a x,
). Ma n a g e m e n t b e lie ve s t h a t it is u se fu l to su p p le m e n t it s GAAP fin a n c ia l st a te m e nt s w it h t h is n o n -GAAP in fo rm a t io n b e c a u se m a n a g e m e n t u se s su c h info rm a t io n in te rn a lly fo r it s o p e ra t in g , b u d g e t in g a n d fin a n c ia l p la n n in g p u rp o se s. Th e se n o n a lso b e lie ve s t h a t p re se nt a t io n o f t h e n o n -GAAP fin a n c ia l m e a su re s p ro vid e s u se fu l in fo rm a t io n to o u r inve sto rs re g a rd in g o ur fin a n c ia l co nd it io n a n d re su lt s o f o p e ra t io n s b e c a u se it a llo w s inve sto rs g re a te r t ra n sp a re nc y to t h e in fo rm a t io n u se d b y Te sla m a n a g e m e n t in it s fin a n c ia l a n d o p e ra t io n a l d e c isio n m a kin g so t h a t inve sto rs c a n se e t h ro ug h t h e eye s o f Te sla m a n a g e m e n t re g a rd in g im p o rt a n t fin a n c ia l m e t ric s t h a t Te sla m a n a g e m e n p e rfo rm a n ce . No n -GAAP info rm a t io n is n o t p re p a re d u n d e r a co m p re he n sive se t o f a cco un t in g ru le s a n d t h e re fo re , sh o uld o n ly b e re a d in co nju n c t io n w it h fin a n c ia l in fo rm a t io n re p o rte d u n d e r U.S. GAAP w h e n
-GAAP fina n c ia l in fo rm a t io n is p ro vid e d a b o ve .
F O RW ARD-LO O KING STATEMENTS
Ce rt a in st a te m e nt s in t h is e live rie s, m a rke t sh a re , fe a t u re s a n d / o r t im in g o f e xist in g a n d fu t u re
Te sla p ro d u c t s a n d te c h n o lo g ie s su c h a s Mo d e l 3, Mo d e l Y, Te sla Se m i, Te sla p ic ku p t ru c k, Te sla Ro a d ste r, Au to p ilo t a n d Fu ll Se lf Drivin g fe a t u re s, o ur e n e rg y p ro d u c t s su c h a s Me g a p a c k, a n d o u r fin a n c ia l se rvice s su c h a s
Te sla In su ra n ce ; st a te m e nt s re g a rd in g g ro w in g m a rke t o p p o rt u n it ie s a n d m a rke t sh a re fo r Te sla p ro d u c t s a n d se rvice s a n d t h e c a t a lyst s fo r t h a t g ro w t h ; st a te m e nt s re g a rd in g g ro w t h in se rvice a n d re p a ir c a p a b ilit ie s; st a te m e n t s re g a rd in g re ve nu e , c a sh a va ila b ilit y a n d g e n e ra t io n , c a sh flo w, g ro ss m a rg in , sp e n d in g , c a p it a l e xp e nd it u re a n d p ro fit a b ilit y t a rg e t s; st a te m e nt s re g a rd in g p ro d u c t ivit y im p ro ve m e nt s, co st re d uc t io n s a n d c a p a c it y e xp a n sio n p la n s; st a te m e n t s re g a rd in g e xp a n sio n a n d ra m p a t t h e Te sla Fa c to ry, Gig a fa c to ry Sha n g h a i a n d a fu t u re Gig a fa c to ry in Eu ro p e , in c lu d in g co st , p ro je c t fin a n c in g , re g ula to ry c le a ra n ce a n d t im in g , p la n s
--lo o kin g st a u n ce rt a in t ie s, a c t u a l re su lt s m a y d iffe r m a te ria lly fro m t h o se p ro je c te d . Th e fo llo w in g im p o rt a n t fa c to rs, w it h o ut lim it a t io n , co uld c a u se a c t u a l re su lt s to d iffe r m a te ria lly fro m t h o se in t h e fo rw a rd -lo o kin g st a te m e nt s: t h e risk o f d e la ys in t h e m a n u fa c t u re , p ro d u c t io n , d e live ry a n d / o r co m p le t io n o f o ur ve hic le s a n d e ne rg y p ro d u c t s a n d p ro d u c t fe a t u re s, in c lu d in g Mo d e l 3 a n d o ur a u to no m o us d rivin g fe a t u re s; o u r a b ilit y to g ro w o ur p ro d u c t io n , sa le s, d e live ry a n d se rvic in g c a p a b ilit ie s, a n d m a n a g e fu t u re g ro w t h e ffe c t ive ly, e sp e c ia lly in te rn a t io n a lly; co n su m sim u lt a n e o u s a n d se p a ra te m a rke t a cce p t a n ce o f a n d d e m a n d fo r o ur ve hic le s, inc lu d in g fu t u re ve hic le m o d e ls su c h a s Mo d e l Y; t h e a b ilit y o f su p p lie rs to m e e t q u a lit y a n d p a rt d e live ry e xp e c t a t io n s a t in c re a sin g vo lum e s, e sp e c ia lly w it h re sp e c t to o u r h ig h -vo lum e m o d e ls; o ur a b ilit y to su st a in a n d fu rt h e r g ro w o ur ra m p o f b a t te ry ce ll, e ne rg y p ro d u c t a n d p ro d u c t co m p o n e n t p ro d u c t io n a t Gig a fa c to ry1; o ur a b ilit y to ra m p Gig a fa c to ry
Sha n g h a i in a cco rd a n ce w it h o ur p la n s; a ny fa ilure s b y Te sla p ro d u c t s to p e rfo rm a s e xp e c te d o r if p ro d u c t re c a lls o cc u r; o ur a b ilit y to co nt in u e to re d uce o r co nt ro l m a n u fa c t u rin g a n d o t h e r co st s; co m p e t it io n in t h e a u to m o t ive a n d e ne rg y p ro d u c t m a rke t s g e n e ra lly a n d t h e a lte rn a t ive fue l ve hic le m a rke t a n d t h e p re m iu m ve hic le m a rke t s in p a rt ic u la r; o ur a b ilit y to e xe c u te o n o u r e vo lvin g st ra te g y fo r p ro d u c t sa le s, se rvice , c h a rg in g a n d o t h e r c u sto m e r in fra st ru c t u re ; t h e un a va ila b ilit y, re d uc t io n o r e lim in a t io n o f g o ve rn m e nt a n d e co no m ic ince nt ive s fo r e le c t ric ve hic le s a n d e ne rg y p ro d u c t s; p o te n t ia l d iffic u lt ie s in p e rfo rm in g a n d re a lizin g p o te n t ia l b e ne fit s u n d e r d e fin it ive a g re e m e nt s fo r o ur e xist in g a n d fu t u re m a n u fa c t u rin g fa c ilit ie s; o ur a b ilit y to a t t ra c t a n d re t a in ke y e m p lo ye e s a n d q u a lifie d p e rso n n e l; o ur a b ilit y to m a in t a in t h e se c u rit y o f o ur in fo rm a t io n a n d p ro d u c t syste m s; o ur co m p lia n ce w it h va rio u s re g ula t io n s a n d la w s a p p lic a b le to o u r o p e ra t io n s a n d p ro d u c t s, w h ic h m a y e vo lve fro m t im e to t im e ; risks re la t in g to o ur in d e b te d ne ss a n d fin a n c in g st ra te g ie s; a n d a d ve rse fo re ig n e xc h a n g e m o ve m e nt s. Mo re in fo rm a t io n o n p o te nt ia l fa c to rs t h a t co uld a ffe c t o ur fin a n c ia l re su lt s is in c lu d e d fro m t im e to t im e in o ur Se c u rit ie s a n d Exc h a n g e Co m m issio n filin g s a n d re p o rt s, in c lu d in g t h e risks
-Q file d w it h t h e SEC o n J u ly 29 , 20 19 . Te sla d isc la im s a ny o b lig a t io n to up d a te in fo rm a t io n co nt a in e d in t h e se fo rw a rd -lo o kin g st a te m e n t s w h e t h e r a s a re su lt o f n e w in fo rm a t io n , fu t u re e ve nt s, o r o t h e rw ise .
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