Market Overview

Highlights from Tesla's Q1 Earnings Conference Call

Related TSLA
OurCrowd and Land Rover Think They've Found The Future Of Mobility
As Tesla Begins Delivery Of Its Model 3, Barclays Sees Downside To $165
The Vetr community has upgraded $TSLA to 4.5-Stars. (Vetr)

Below are some highlights from Tesla's (NASDAQ: TSLA) first-quarter earnings conference call:


  • Tesla doesn't think that they have a demand problem in China.
  • They are trying to expand their centers and supercharger coverage in China as fast as possible
  • Tesla is likely going to do local vehicle production in China in 3-4 years
  • Vehicle production in Europe as well in order to minimize logistics costs
  • Tesla is trying to get the wait times down in china; some of their customers are unhappy that they are delaying their deliveries
  • Tesla is not really seeing a lot of cancellations and has not seen many problems in the electrical grid in China


  • R&D expenses went up exactly as planned
  • Primarily driven by engineering design costs and testing the Model X in order to get it ready for China and other markets
  • Some of the R&D is ongoing improvements to the Model S
  • Very exciting software improvements are coming out in several months
  • Its more important to Tesla that they can service their cars really well instead of delivering them quickly
  • With the Model X Tesla wants a car that is better as a production car than as a showcar
  • Tesla will have the production design articles for the Model X out at the end of this year
  • Tesla will make sure the Model X is solid before they ramp up production


  • Tesla has a letter of intent signed with Panasonic and it doesn't think that it is a big deal that Panasonic did not sign on the dotted line yet
  • Tesla expects to break ground on multiple sites in order to minimize risk
  • Tesla expects to break ground on the first Giga Factory probably next month
  • Probably a month or two later Tesla will break ground on the next one
  • Under the current contract Panasonic will be the only company producing in the Giga Factory
  • Tesla has several other companies producing the pre-cursors to assembly in the Giga Factory
  • If Panasonic won't be able to meet the demand, then other suppliers will be brought on


  • There is a lot of opportunity for innovation and cost reduction
  • Improving labor efficiency is one of these cost reductions that Tesla is pursuing
  • Tesla has had interesting conversations with companies that mine nickel and cobalt
  • Tesla clearly sees that if revenue is going to pick up significantly, then portion of revenue on R&D will be in single digits
  • For the first half this year Tesla were constrained by cell supply, which is most likely going to be alleviated by q3
  • Things are on track for Tesla to be able to meet 35,000 deliveries
  • In Tesla's case sales means deliveries not demand if production was better Tesla could deliver more cars
  • Tesla is seeing steadily increasing demand in North America
  • Gross margin improvement is occurring because of cost reduction
  • Tesla doesn't reduce costs if it makes the product worse
  • In a number of cases Tesla has added costs to the car because something needed to be improved

Posted-In: Earnings News


Related Articles (TSLA)

View Comments and Join the Discussion!