TESLA Q1 2019 results - things to watch

Author: Ruban
Sector: Autos
Industry: Consumer Cyclical


TESLA Q1 2019 Financials


Tesla will announce its first-quarter 2019 financial results on April 24. There was a shortfall in the delivery of Tesla cars due to issues with logistics because of delivering a higher volume of cars for the first time across the Atlantic to Europe and China. Due to lower than expected delivery numbers, Tesla has reported that its net income will be negatively affected. A detailed discussion of Tesla's Q1 2019 delivery numbers can be found here .

Car delivery Guidance:

Investors will look out for an update on Tesla's full-year guidance for its electric car delivery. In its delivery report for Q1 2019, Tesla reaffirmed its guidance of 360,000 to 400,000 total deliveries in 2019 when it reported its first-quarter deliveries earlier this month. Going by Tesla's guidance for full-year delivery numbers, the company is expecting its deliveries to increase 45% to 65% year over year, this is key for the company as it will help the company to attain the scale required to achieve positive net income and free cash flow in the remaining quarters of 2019.

Cash Flow status:

Another important thing investors should look into is Tesla's cash flow status. Owing to good Q3 and Q4 in 2018, which had a free cash flow of $881 million and $910million respectively, Tesla's cash and cash equivalents increased from $2.2 billion at the end of Q2 to $3.7 billion by the end of last year. But a $920 million bond payment during Q1, combined with management's expectations for a loss in Q1, suggests that the company's cash position could easily fall by a billion dollars or more in Q1 compared to the fourth quarter of 2018.

Tesla's stock price is trading at around $273, which is around 30% less than 52 weeks' high of $387.46 and 10% more than 52 weeks' low of $247.77.


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