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Tesla Fourth Quarter & Full Year 2015 Update
$179 million positive core operational cash flow in Q4 2015
Model S deliveries increased 76% year on year in Q4 2015
Reaffirming plan for about 60-80% new vehicle sales growth in 2016
Model S gross margin tracking toward 30% by Q4 2016
Beginning in March, expecting net cash flow positive for remainder of 2016 with ABL
Planning for full year 2016 non-GAAP profitability, GAAP profit in Q4 2016
Model 3 unveiling is March 31st and on schedule for production & deliveries in late 2017
February 10, 2016
Dear Customers and Fellow Shareholders:
|In 2015, we significantly expanded Teslas product breadth and operational scale. We introduced new variants of Model S, launched Model X, introduced our groundbreaking Autopilot functionality on both vehicles, and started our complementary energy storage business. To accommodate growing demand for these products, we added production capacity at five locations and expanded our network of stores, service centers and Superchargers globally. Our customers are now driving over 107,000 Tesla vehicles in 42 countries, and have traveled nearly 2 billion miles. Tesla Autopilot is learning at the rate of over a million real-world miles per day.|
|In Q4 alone, we generated $179 million of positive cash flow from our core operations defined as cash flow consumed in operations of $30 million plus cash of $209 million received from vehicle sales to our leasing partners. Growing worldwide demand for Tesla vehicles, supported by record production, allowed us to achieve this result as we increased deliveries by more than 50% from just the prior quarter.|
For 2016, we are planning for even faster delivery growth than last year. We plan to be net cash flow positive and achieve non-GAAP profitability for the year, even after investing about $1.5 billion to add more production capacity, start cell production at the Gigafactory, and establish additional customer support infrastructure. Moderate GAAP profitability is expected in the fourth quarter. These investments will help prepare the way for Model 3, which is on schedule to be unveiled on March 31st and to start production and deliveries in late 2017.
Vehicle Demand Growth & Increasing Production Capability
|In Q4, we increased global deliveries over 76% year on year as Model S market share gains continued in every geographic region. In the U.S., just over three years after entering the market, Model S took share from all incumbent manufacturers to become the number one selling comparably priced four-door sedan. In fact, Model S was the only vehicle in its class with growing sales last year. Even on our competitors home turf and in countries without government incentives to purchase electric vehicles, Model S is winning. For example, in Switzerland, Model S outsold the|
|Mercedes Benz S-Class, the BMW 7-Series, the Porsche Panamera and the Audi A-8 combined for the full year, and also outsold the Mercedes Benz E-Class. In Germany in Q4, Model S outsold the Porsche Panamera. Finally, across all of Europe last year Model S outsold the Audi A8 and A7 combined and the BMW 7-Series and 6-Series combined.|
New Model S orders grew over 35% year on year in Q4, with growth in all regions. Even with this growth, we believe that we remain substantially underpenetrated in all of our markets because of our limited retail presence. Additionally, we continue to see no perceptible impact to our order growth from the change in the price of gasoline as our order rates have continued to increase even as the price of gasoline has fallen. In fact, our customers tell us they value a Tesla vehicle more for its superior performance, technology, safety,
The following information was filed by Tesla, Inc. (TSLA) on Wednesday, February 10, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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