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Tesla Reports Mixed Energy Results in Second Quarter

Tesla delivered a company-record 95,356 vehicles in Q2 2019 but missed analyst expectations. The company reported a 19 percent auto gross margin due to high Model 3 sales volume. Powerwall and Powerpack deployments grew, despite a drop in solar installations.

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· TeslaEarningsQ2-2019Electric Vehicles
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Tesla Reports Mixed Energy Results in Second Quarter

Key takeaways

01

95,356 vehicles delivered in Q2 2019, with 77,634 Model 3 sales, but 19 percent auto gross margin below recent historical levels

02

Solar installations fell to 29 in Q2 2019 versus 84 in Q2 2018 and as many as 214 in a previous quarter since 2016.

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Tesla Inc. stocked dipped this week upon the release of the company’s most recent quarterly earnings report. The car manufacturer did not meet analysts’ expectations despite a company-record 95,356 vehicle deliveries during the second quarter of 2019.

According to Tesla’s SEC filing, the company produced an auto gross margin of approximately 19 percent, which is not as high as the company has experienced in recent years. Experts attribute this to high volume sales of the cheapest Tesla vehicle, the Model 3. The company expects to profit margin to rise when Model 3 production begins in a new China-based plant later this year. The company reported an all-time record of 77,634 sales of the car in Q2.

Tesla offers more than just vehicles. There is mixed news in the company’s energy division as well. Tesla reported a record low in solar installations, with just 29 in the second quarter. There were 84 reported installations during the same period last year, and as many as 214 in a quarter dating back to 2016.

“We are in the process of improving many aspects of this business to increase deployments,” Tesla stated.

However, Tesla grew deployment of its Powerwall and Powerpack by 81 percent in Q2, bringing total Powerwall installations to more than 50,000 locations. These products are Tesla’s electric car charging stations for commercial and home use.

Tesla announced on Wednesday it expects to return to profitability in the third quarter of 2019.

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