A few days ago, Tesla released the company's second quarter financial report. The financial report shows that Tesla production and delivery volume in the second quarter both set a record , and its operating income also achieved a year-on-year growth of more than 50%, but it still did not make a profit. The net loss attributable to common shareholders reached US$408 million, and its gross profit margin fell from 20.2% in the first quarter to 18.9%. While has continued to suffer losses for two quarters, investors are still optimistic about the stock price expectations of Tesla . But the day after the financial report released its second quarter financial report, the stock price of Tesla plummeted 13.6% at the close of the market to US$228 per share, with the highest decline of 14.73% on the day, the largest single-day decline since this year.
still remember that at the beginning of the year, when Tesla company achieved continuous profits in the second two quarters of 2018, the market voice kept rumbling that " Tesla will achieve continuous profits." However, with the launch of large-scale production and delivery of Model 3, its profit problems occurred. How is Tesla 's recent situation? What exactly caused its losses that lasted for two quarters? In the face of the problem, what are the plans for Tesla ? Let us introduce it to you one by one.
[· In the turbulent autumn of 2019, Tesla had mixed joys and sorrows in the first half of the year]
Since early 2019, Tesla 's financial report showed that it continued to make profits in the third and fourth quarters of 2018, Musk quickly opened the factory groundbreaking ceremony in Shanghai, China, and started the overseas delivery of Model 3. Under the trend that seems to be a good thing, Tesla has launched the Model Y model and has significantly reduced the price of the Model series models in China. The purpose of this behavior is to expand sales. From the side, in the first quarter, the sales of still had a lot of room for improvement in Tesla .
Shanghai factory
Despite a lot of efforts, Tesla 's first-quarter profit performance did not meet expectations. With the release of the first quarter financial report losses, the stock price of Tesla fell accordingly. Despite poor profitability in the first quarter, Tesla is still making steady progress. Continuously release information such as the plan to build a self-built battery factory, the launch of fully autonomous driving products by the end of 2020, the construction of the third-generation super charging pile, and even the opening and reservation of the domestic Model 3. At the same time, its old Model S frequently ignites itself in mainland China, but has not given a clear attitude to solve the problem so far. The domestic Model 3 is insincere, and the car owners are worried about the quality of Tesla products, and the society is relatively dissatisfied with the performance of Tesla in terms of service and quality control.
Model 3
In addition, in the second quarter conference call of Tesla , the company's co-founder and chief technology officer JB Straubel will resign from the company and become a senior consultant to Tesla . As the soul of Tesla product technology, JB's resignation has once again set the company's stock price. Since 2018, more than 100 executives of Tesla have left, which has also added to the market's negative sentiment about the future expectations of Tesla .
[ · Financial report was released, production and sales reached its peak but still difficult to make a profit ]
Tesla is frequently launching marketing plans, while exposing the company's ambition to increase sales. Some people also say that Tesla has jumped out of the hell of production capacity and entered the hell of demand. However, from the financial report, we can see that in the second quarter of 2019, the production of Tesla was 87,048 vehicles and the delivery volume was 95,356 vehicles. Both the production and delivery volume set a historical record, and orders for Model 3 are still coming. It seems that demanding hell is no longer the biggest challenge that Tesla has to face.But under such beautiful data, why is Tesla not profitable?
Data source: Nasdaq.com
By comparing the financial statements of Tesla over the past six months, we noticed that Tesla did have a significant year-on-year increase in car sales revenue (Total Revenue) (month-on-month), but the increase in car sales cost is not smaller than revenue at all. There was even a vicious circle like "'s gross profit margin declined, sales revenue increased, and sales costs increased more."
According to the data provided by the Nasdaq Securities Trading Center, we can find that Tesla has not performed significantly in the past six months for revenue growth, but with it, a significant increase in sales costs. In the second quarter of 2019, the company's sales cost exceeded the third quarter of 2018, but its revenue did not reach the third quarter of 2018 levels. Due to the rising cost, the overall financial situation of Tesla has not improved significantly.
E Electric Park mentioned the concerns that the company's sales costs are rising sharply in its Tesla financial report analysis at the beginning of the year, and now it has come true. According to the survey, the high sales cost of Tesla is closely related to its factory production costs, sales costs, offline store layout, charging pile construction, transportation costs and tariffs. is different from the usual local battles and selling high-end products. Model 3, a product with a lot of volume, has indeed achieved small profits but quick turnover. However, in the case of high company costs, it still needs to be considered whether Tesla can achieve "profit in the third quarter" as Musk promised.
In addition, we can also notice that regardless of the profitability of , Tesla has always performed soundly in technology investment , and its R&D investment (Research and Development) has always been above US$300,000. This can also indirectly prove that Musk does not have much tendency to short-term interests. The inability to achieve short-term profits or no plans to achieve short-term profits is also one of the conflict points between Musk and shareholders. From the perspective of capital profit-seeking, Tesla is under considerable pressure from shareholders. (I hope they won’t transfer the pressure to consumers’ services.)
[ · The road ahead is uncertain, how will Tesla break the deadlock? ]
In the past six months, Tesla has suffered continuous spontaneous combustion of , car accidents caused by autonomous driving, frequent personnel and price strategic adjustments, and stock price has fallen by 50%. Even the co-founder and technical core announced their resignation of . The 16-year-old leader in the electric vehicle industry has not bowed his head in the face of "unfortunate" fate.
In terms of production , Musk announced that with the completion of the Shanghai factory, there will be a huge change in production costs and output. Regardless of whether the Model's annual production capacity can reach 500,000 units, the lower production cost of the Shanghai factory will definitely save the sales expenses of Tesla for continuous poor performance.
product , Tesla Model Y will also start delivery as soon as next year. Although the outside world does not have a high evaluation of the Model Y's styling - this does not seem to be much different from the Model 3. But a mid-size pure electric SUV can also bring considerable impact to the market.
Tesla Super Charging Station Distribution
Technology , although Autopilot is about to increase its price, Tesla has not lost any investment in R&D in this area. Tesla recently announced its project DOJO, which will help achieve full autonomous driving. In terms of charging, in addition to launching a 250kw high-power charging pile, Tesla will double the number of super charging stations in 2020.
Tesla independently developed battery product
market , Tesla 's total sales in the Chinese market achieved a growth of more than 40%, reaching US$1.469 billion, and China has also become the second largest market for Tesla . It is generally believed in the industry that the Chinese market will become the key to the "breaking of the deadlock" of Tesla .With the gradual completion of the factory, the Model 3 produced by Tesla in China will not be affected by tariffs. The affordable Model 3 may make some achievements in China's relatively huge new energy vehicle market.
Summary:
In the first half of 2019, Tesla company sold well in sales, but performed poorly in terms of profits. The reason is that its sales cost increases almost exceeds its sales revenue. As the stock price continues to fall and the company is in controversy, Tesla may have to tighten its belt and spend the long third and fourth quarters strongly. Although Musk continues to release "big events" that stimulate people's nerves, it cannot be realized immediately, but instead feels powerless to force the pie to survive. hopes that "Iron Man" and his team will have less routines and more sincerity. Good products and companies will never lack supporters . I hope that the completion of the Shanghai factory can bring more turning points to Tesla .
