I Cant Believe Elon Musk & Tesla DID THIS! UNREAL Tesla Stock Earnings!
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Holy Smokas guys Tesla and Elon Musk just Q3 2020 Earnings. And let me tell you, they are amazing!! I will talk to you in depth about the numbers that Elon Musk and Tesla just reported and what it means for the stock. Also I will get into the stock price and why Tesla stock price hasn’t moved up much today.
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Hello guys Today is a day we have all been waiting for Tesla earnings and q3 2020 earnings are out in there on real okay the Tesla stock chat is going crazy in the hub let’s just put it that way
okay so we’re going to take a in depth look at these earnings here today on what they just reported and on top of that we’re going to talk about this stock price which the earnings have been out now for you know almost 20 minutes and the stocks up 2% and everybody’s looking at the stock price and like what in the heck is going on here like the stocks hardly moving this is Tesla stock after
I mean Tesla stock usually is like you know 8% and 10% mover people have seen 2% like why is the stock not either moving down huge or up huge What the heck is going on?
I mean look at the options market options market expected this stock to move around 8% in bertoli have moved 2% so far is a little surprising to folks so we’ll talk about that as well hope you guys enjoyed today’s video as always if you don’t mind smash that thumbs up helps out the
YouTube channel massively in the algorithm I appreciate each and every one of you that are part of the thumbs up squad also if you haven’t checked out stock hub is be the first link in the description My name is a pin comment down there. As always make sure you join us in the Tesla chat all right already guys, let’s start getting into this CNBC look at this the headline Tesla reports fifth consecutive quarter of profits.
They give CNBC for given Tesla a fair shake. In the past I’ve been critical of CNBC. I felt in past years that they just talk about that they’ll take whatever little small bad detail is and like put that as a headline.
So I appreciate you. I want to give some respect before we get even get into all this. Okay, alright guys, let’s start going through some of these headline numbers. And we’ll go more and more in depth.
The cave headline numbers out of Elan musk and Tesla are amazing here, look at this earnings per share 76 cents versus 57 cents was expected. That’s a massive, massive epsp look at revenue revenue came in at $8.77 billion versus $8.36 billion was expected that’s over a $400 million beat there by Tesla in this quarter.
Unbelievable revenue number. Needless to say net income on a gap basis. Okay, this is gap basis. Sometimes people like to say well, on non GAAP basis, Tesla does this but that’s non GAAP.
That’s non generally accepted accounting principles. This is generally accepted accounting principles, and they still have $331 million on net income. Very dang impressive. This chart might show you the whole world. Okay, look at this one here.
This basically shows you over time, Tesla’s either net loss or net income. And look how over time this was just a company that consistently lost money and lost money.
And they were right around peak losses when I started getting involved with the stock, but I started running the numbers and I was like this company is going to turn to huge profitability over the next couple years. And obviously now they’re at a point where they’re either breakeven or making very nice profits.
And keep in mind, Tesla’s not even focused on profits yet. I mean, imagine where this company is going to be in three, five years. I mean, Ilan musk just wants to take market share. We’ve seen him even lower prices, despite him being able to take profits if he wanted to.
He wants to take mass market share in this market and make sure Tesla is a premier player in E V’s long term. So this is massive. Okay, already, let’s start getting into some of the more detailed numbers, which are even more impressive In my opinion, than a lot of those top line bottom line numbers. Okay.
Look at this automotive revenues right off the bat up 42% year over year. That’s crazy number. Okay. 42%. In terms of regulatory credits, I know the short sellers always like to talk about the regulatory credits and all tussle uses regulatory credits.
It’s like, Hey, man, that’s an advantage for them. Okay. And if you look at this, it’s pretty much in line with what it’s been in past quarter. So use $397 million of regulatory credits, which is essentially credits that are given to Tesla from other automakers, because those other automakers are still basically making a lot of ice vehicles and they need to get on the Evie wave.
So they have to get regulatory credits to Tesla’s so 397 million that’s actually less than us in this quarter than last quarter in q2 of 2020. And it’s pretty much in line with what they used around q1.
So you know, nothing crazy regulatory credit wise, their automotive gross profit came in at $2.1 billion and it’s 72% growth year over year. absolutely phenomenal, gross profit number look at the automotive gross margin came in at 27.7%. This is one of the most impressive numbers in my opinion, that automotive gross margin. That’s 483 basis points.
up year over year incredible gross margins. This company is starting to have look at total revenues up 39% year over year. I mean, you wouldn’t think we’re in like a middle of a Ronnie Rona situation, would you? I mean, that’s crazy. 39% year Are your revenues up?
Look at total gross profit of 73% year over year to over $2 billion in this latest quarter, q3 2020 versus the same quarter last year. $1.1 billion. Okay, total gap gross margin came in at 23.5% versus the same quarter last year of 18.9%.
That’s 462 basis points of growth there for gap gross margin. Incredible numbers. Let’s look at this more in depth. Operating Expenses are up 35% year over year, as we should expect for Tesla income from operations up to 110%. year over year. Oh, my goodness.
Oh, look at operating margin might be the most impressive number of all these numbers. I mean, all these numbers are impressive, but operating margin might be the most impressive but 508 basis points year over year. Look at that coming in and 9.2% that is versus 5.4% and 4.1%. The previous year in the same quarter.
Oh my goodness, guys, that is absolutely redonkulous let’s just put it that way in the credible, adjusted EBIT, da came in up up 67% year over year, adjusted EBIT margin was 342 basis points up year over year came in at 20.6% versus 17.2%.
The previous year look at net income attributable to common shareholders on a gap basis, up 131% year over year to 331 million from 143 million look at net income attributable to common shareholders on a non GAAP basis, up 156%. creditable $874 million there versus 342 million the previous year in the same quarter look at epcs attributable to common shareholders on a diluted basis on a gap basis.
Look at that up 67% in on a non GAAP basis up 105% net cash provided by in used in operating activities up 217% capital expenditures up 161% year over year, over a billion dollars in capital expenditures in this latest quarter.
Tesla’s still spending like a beast because they’re growing the business and they got all these factories underway and just tons of projects research and development. Yeah, a lot of capital expenditures for this business right now. free cash flow up to 176%.
And let’s just look at this cash and cash equivalents up 172% year over year, over $14.5 billion in cash and cash equivalents. Remember when they said this company was going to go bankrupt a couple years ago. Remember that and now they have $14.5 billion in cash on the balance sheet. They have revenue that’s exploding and they have profitability on a gap and a non GAAP basis.
absolutely incredible. $14.5 billion in cash on that balance sheet right now. And lemon that’s that’s with them doing all those crazy capital expenditures right now. Incredible, right. Let’s look at production numbers Model S and x production was up 4% year over year, which you know, you shouldn’t expect anything crazy out of s next although the S is getting a nice refresh.
So 2021 s actually might get bumped up k three and y that’s where the whole business is at right now. That’s the important part of 60% year over year in terms of production for the three in the y total production up 51% year over year. absolutely extraordinary.
Look at deliveries the s and x were down but expect much stronger next quarter for S and x the three in the y deliveries of 56% year over year total deliveries up 44% year over year in terms of those vehicles being used for lease accounting about 10% there these numbers are extraordinary total end of quarter operating lease vehicle count was up 39% year over year global vehicle inventory days of supply was down 22% year over year solar deployed up 33% is something.
I heard the ever talk about is the energy side of our business the solar business the battery pack business those type of things and the numbers are incredible okay storage deployed up 59% year over year store in service vehicle locations up 12% very important in mobile service fleet up 8% and it continue to expand those numbers in my personal opinion.
Make sure their service is always on point and absolutely amazing supercharger stations that’s absolutely something they got to continue to build out they already have. You know there’s no one you can even compare to.
Tesla when it comes to your supercharger network. Never mind where test is going to take this over the next you know let’s say 10 years or so supercharger stations up 32% supercharger connections up 30 or percent absolutely extraordinary numbers.
How can you compete with Tesla if you’re a big guy? Like how can you do it man, it’s not just like their vehicles are way better. The technology in them is way better.
The range is getting to places where it’s way longer than anybody else has an electric vehicle space but look at the supercharged like how can you compete with that? It’s just so dang tough k vehicle compacity.
This is huge, free month. We have recently increased capacity of model three model wide to 500,000 units a year at the Fremont factory. In order to do this. We restarted our second pain plant, installed the largest die casting machine in the world and upgraded our model why general assembly line production should reach full capacity toward the end of this year, or beginning of next year at Fremont.
Fremont is just continuing to increase capacity. It’s amazing. I mean, you really I mean, I thought Fremont was like maxed out as of like a year ago and yet they’re still like building upon Fremont that’s just absolutely extraordinary.
Shanghai model three production capacity has increased to 250,000 units a year we reduce the price of the model three to 249,000 RMB after incentives making it the lowest price premium midsize sedan in China.
This was enabled by both lowering cost of batteries and increased level of local procurement as a result of this shift in costs and starting price. We recently added a third production shift to our model three factory which means you got to if you got a third shift on that means you’re you’re basically working around the clock like the factory never closes there’s people working morning evening and throughout the night absolutely extraordinary what’s going on in Shanghai in that’s just wait to see where where the numbers are happening.
And three, four or five years from now. Okay, Berlin, what’s going on with Berlin construction at the Giga factory in Berlin continues to progress rapidly. Buildings are under construction and equipment moving will start in the coming weeks.
That’s amazing. At the same time, the Giga Berlin team continues to grow production is expect to start in 2021. They did not say when in 2021. I think most of us expect mid to late 2021 as being basically when production starts.
So probably summertime, potentially into the fall time. We’ll see how things shake out there. I’ll show you some pictures of that Berlin Giga factory. That’s absolutely amazing. Those pictures were just taken a day or two ago.
absolutely extraordinary. Okay, in terms of installed annual capacity, okay, 90,000 s and x now for Fremont, 500,003 and y now at Fremont. As far as model three and Shanghai got that up to 250,000.
If you’re thinking about short term, like what’s going to happen over the next six to nine months, to boost Tesla’s numbers up big time, it’s going to be model y factory getting completely finished, which is almost there in Shanghai, the numbers are going to start roaring out of there.
And that’s going to be amazing, absolutely amazing. And basically by the end of 2021, this company should get to a place where they’re well over a million vehicle production capacity.
Okay, absolutely extraordinary. autopilot and self driving. Very important thing about the future of driving, it’s not going to be humans, it’s going to be the cars doing it for us. Okay, our autopilot team has been focused on the fundamental architectural rewrite of our neural networks and control algorithm.
This rewrite will allow the remaining driving features to be released in October we sent the first full self driving software update enabled by the rewrite to a limited number of Early Access Program users city streets.
This is huge. As we continue to collect data over time, the system will become more robust. There’s no one doing this type of stuff in the real world. absolutely extraordinary vehicle software, new software functionality was introduced since the start of q3. In order to make our product safer from unauthorized access, we introduced the ability to enable two step verification via smartphone.
Additionally, among many other updates, we improved Active Suspension comfort, updated power wall to vehicle charging coordination and added in automated window closing feature in glove box pin access our model.
Why all wheel drive customers can now purchase a $2,000 software update that improves zero to 62 just 4.3 seconds and by the way, like for all Tesla shareholders watching this video right now, this type of stuff is so big, I can’t even explain it. Like there’s some software update.
That could be 1000 2000 or you know, like obviously a self driving something that could be $8,000 like that’s all pure profit and then there’s other technologies already been developed. It’s an over the air update.
So you know, if somebody goes ahead and does something like that, because like, Oh man, I would love faster zero to 60 or I love full self driving something like that. It’s almost all pure profit sharing Two tests. Okay, that’s magical in the business model, imagine where that business is going to be at 510 years from now.
Extraordinary look at how Apple services revenue has grown over time. What do you think’s gonna happen with tests over the next 510 years? Okay, battery in power train on September 22, we hosted tests of battery day, where we describe the path toward reducing battery cost per kilowatt hour by 56%.
Not a lot of people were even talking about that out, especially outside of the Tesla community 56%. I mean, if they can get anywhere close to that number, you know, it’s already game over for everybody. But I mean, that’s just double GameOver. Like, that’s absolutely extraordinary, enabling production of a probable $25,000 vehicle.
That’s absolutely amazing. When I was looking into Tesla as an investment, I was like, they got all this stuff going, but I was like, eventually, they’re gonna have something past a model three, that does crazy production numbers.
And you know, I don’t know what it will be called when it comes out in the mall, or something. But if you can ever get in that $25,000 price point, that’s going to be the thing that propels tests of into 5 million 10 million 15 million, if not 20 million plus vehicles and future.
Never mind if you have autonomous taxi networks, and that’s the vehicle that are used mostly on autonomous taxi network a huge, absolutely massive stuff there. Okay, Outlook wise, what’s going on with this company volume, let’s talk about that.
First, we have the capacity installed to produce and deliver 500,000 vehicles this year, the sticking by that number of 500,000 vehicles this year, while achieving this goal has become more difficult delivering half million vehicles in 2020 remains our target.
Achieving this target depends primarily on quarter over quarter increases in model y and Shanghai production, as well as further improvements in logistics and delivery efficiency at higher volume levels.
Cash Flow, we should have sufficient liquidity to fund our product roadmap, long term capacity expansion plans and other expenses 100% profit for the trailing 12 months, we achieved an operating margin of 6.3% we expect our operating margin will continue to grow over time ultimately reaching industry leading levels very key word choice there.
industry leading levels with capacity expansion and localization plans underway product we are currently building model why capacity at Giga factory Shanghai, Giga factory Berlin in Gigafactory, Texas and remain on track to start deliveries from each location in 2021.
It’s going to be a crazy next year for Tesla and moving into 2022 Tesla semi deliveries will also begin in 2021. We continue to significantly invest in our product roadmap, look at this, this just shows you some innovation, Tesla has been working on cell design.
So factory but no material cathode material cell vehicle integration, like just look at all that, okay, that’s just like, you know, you know, my engineers, you guys can enjoy that stuff. The innovation at Tufts was amazing.
They’re years ahead of all their competition. And they’re still pushing further and further and further and further ahead of any, there’s just they’re running their own race at this point, let’s just be quite honest with ourselves.
Okay, let’s look at some very recent pictures out within the last day or two around these different factories and where things are at this is showing you Giga factory, Shanghai, and this is showing you essentially the model wide area, it’s getting pretty dang close to being done.
Okay, that’s going to be done very, very, very, very soon. I can tell you that, okay. And that’s where all the y’s are going to be made out of absolutely extraordinary.
This is showing you the model wide die cast is already in place at Giga factory Shanghai. Very exciting, like look at the scale of that, like look at those little people. On the way left hand side, they’re like, look at how small they look. Next, that machine absolutely extraordinary stuff.
It shows you the model wide body shop. It’s looking very, very good. It looks like a Transformers TV show or something like that. Look at this the paint shop. I mean, it’s just beautiful.
I don’t know what other what is put. It’s just, I mean, for a paint shop, I want to go in there and get painted. It’s just beautiful. Okay, look at this. This was unreal to me. Okay, this is a recent photo from last year to a drone photo, a Giga factory Berlin, the model y factory construction.
It’s way further along than I thought it was going to be. Things are moving way faster than I actually thought they were gonna I mean, you know, China, you can kind of expect things to move really fast.
But I don’t know Europe. Sometimes it’s like, I don’t know, man. I don’t know if it’s gonna move that fast. And until you Berlin Gigafactory. I am surprised to the upside. This was put that way. Unreal how fast they’re building that out. That is so dang exciting. It’s amazing how dense that forest is, by the way, absolutely extraordinary force they have they’re in Berlin.
Okay. Look at Giga factory, Texas. They’re clearing off all the land look for possibility of some real like upward construction. Let’s put that way happening within the next month. That’s really exciting. What’s going on?
In Texas, okay, by the way, if anybody lives in Texas as part of stock cub, and you have a drone and you want to fly it around every once in a while and you want to post in the Tesla chat in the discord, believe me, we would love to see those photos.
Okay, we would love to see those photos. And also, if there’s anybody watching this that happens to live in Berlin, and you have a drone, and you want to post some, like some photos or videos from time to time, in the Tesla chat, we will love that as well. Okay, we appreciate you big time in stock hub.
Okay, if you want to go and join first link in the description, I’ll probably have his pin comment, as well. Okay, vehicle deliveries. Look at these numbers, guys. I mean, you go back a couple years ago, you go back to 2018. So there’s a company, you know, that was doing like, I don’t know, 30,000 roughly deliveries.
Now they just did 140,000 here in 2020 amazing how this business has ramped. Let’s talk about stock price for a minute. Okay, the stock is up 3%. But keep in mind, the stock is up 3% and the earnings have been out for over an hour now.
So people think what is going on with Tesla stock like it’s not moving that much like 3% but by the way, 3% is 3% at the end of the day, but I can understand people saying well is this Tesla stock these earnings were amazing. You know, why is it only up 3%? Well, now conference call still has to happen as of the finish of prepping this video.
It’s still about 22 minutes away from the conference call. You know if there’s going to be a big movement in Tesla sometimes it comes on the conference call and you can kind of pick up vibes from Ilan Musk, how things are going. Sometimes you get some information out there that you don’t get in the reporting.
Sometimes Elan Musk, you know slips up a little bit and says a little something more than what you got in that report and things like that. So, you know, don’t be surprised if Tesla’s stock does end up still moving huge tomorrow just after hours. Obviously the move is limited as of right now at least.
Okay, irate these earnings a nine out of 10 phenomenal earnings. I mean absolutely phenomenal earnings, nine out of 10 very impressed All right. Hope you guys enjoy today’s video as always, if you don’t mind smash that thumbs up helps out the YouTube channel massively in the algorithm.
I appreciate each and every one of you guys that go ahead and do that. Also if you want to stock club is going to be linked in the description always have as a pinned, comment down there.
Go ahead and join us in there. The tussle chats going to be crazy for the next couple days. Let’s put it that way. Thank you for watching. Have a great day.