Tesla posts $154M GAAP loss, $45M non-GAAP loss in Q1 on record deliveries; confident in 55K total deliveries this year
In its Q1 2015 financial report, Tesla Motors said it produced 11,160 vehicles in Q1 (10% better than guidance, at an average of 1,000 cars per production week); delivered 10,045 (worldwide), a quarterly record; and posted a $154-million GAAP net loss (non-GAAP net loss of $45 million). The Q1 GAAP net loss was 43% greater than the Q4 2014 GAAP net loss and 210% greater than GAAP net loss in Q1 2014.
Tesla has begun breaking out the revenues and costs of its automotive business from its other activities—i.e., powertrain sales, service revenue, Tesla Energy (the new line of stationary energy storage systems) and pre-owned Tesla vehicle sales. Automotive revenue and related costs reflect activities related to the sale or lease of new vehicles including regulatory (e.g., ZEV) credits, data connectivity and Supercharging.
For Q1 2015, GAAP automotive revenue rose to $893.320 million, up 52% from Q1 2014 and up 0.3% from Q4 2014. Q1 Automotive revenue included $66 million of total regulatory credit revenue, of which $51 million came from the sale of ZEV credits. In Q1, Tesla directly leased 592 cars to customers, which was worth $63 million of aggregate retail value.
For Q1 2015, GAAP automotive cost of revenue rose 44.8% from Q1 2014, and dropped 0.8% from Q4 2014.
Q1 automotive gross margin—excluding ZEV credits—was on plan at 26.0% on a non-GAAP basis, and 25.0% on a GAAP basis.
The average selling price of Model S increased slightly during the quarter, reflecting a full quarter of sales of P85D and the introduction of 85D. This mix improvement was partially offset by the effect of the strong dollar, which negatively impacted the average selling price and thus revenue by slightly more than 3% from the prior quarter.
Q1 “Services and other revenue”—i.e., non-automotive—was $46.6 million, up 47% from a year ago. This includes $22 million of powertrain sales to Daimler and $20 million of service revenue. Q1 Services and other gross margin was negative 3.2%, as compared to 12.1% last quarter. This reduction in gross margin was primarily driven by a planned price reduction for powertrain sales to Daimler.
Tesla management said it was confident in delivering approximately 55,000 Model S and Model X vehicles combined in 2015. Tesla said Model X is on track for start of deliveries in late Q3.
Production. Referencing its manufacturing over-performance, Tesla management noted the increase in production on the new small drive unit line, which was critical to meeting the demand for the new all-wheel drive cars. Tesla said that the production launches of 85D and 70D proceeded more smoothly than prior launches.
The company said it made significant progress on the installation of a new body shop, paint shop and stamping presses that will establish extra capacity for both Model X and Model S. (The Detroit News reported that Tesla will acquire Michigan-based Riviera Tool, a company which makes stamping tooling shipped to Tesla’s Fremont plant.)
In addition, Tesla said its expects to start complete battery manufacturing at the Gigafactory, from cells to modules to battery packs, in 2016.