
Tesla Q1 2019 Financial Results - vaibhavgandhi12
https://ir.tesla.com/static-files/b2218d34-fbee-4f1f-ac95-050eb29dd42f
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dragontamer
The $7500 US Federal Tax Credit was lost for the first time in Tesla's
history, dropping to only a $3750 credit. It seems like Q4 2018 "pulled a lot
of demand forward".

IE: People who were going to buy Q1 2019 decided to buy Q4 2018 instead, to
save $3750 more. Tesla tried to counteract the loss of the tax credit with a
$2000 price drop, but that wasn't enough and that also hurts Tesla's margin.

The finale is a bit hard to read:

> As the impact of higher deliveries and cost reduction take full effect, we
> expect to return to profitability in Q3 and significantly reduce our loss in
> Q2.

So Tesla is now forecasting a loss in Q2 2019 (!), before growing profitable
in Q3 2019.

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The "interesting" number to me is SG&A costs of $703 million, which is up from
Q4 2018. I thought that Tesla was closing a lot of stores, which should have
dropped SG&A costs down.

Perhaps the expansion to Europe + China counter-acted any drawdown in the US
Sales force? Hard for me to understand the number.

