Tesla First Quarter 2019 Update


GAAP operating loss of $522M, GAAP net loss of $702M, including $188M of
non-recurring charges



Cash and cash equivalents of $2.2B at Q1-endModel 3 gross margin ~20% in Q1



Revealed Tesla Model YStarted production of Full Self Driving computer

We ended the quarter with $2.2 billion of cash and cash equivalents, a $1.5 billion reduction from the end of 2018. This reduction was
driven by a $920 million convertible bond repayment and an increase in the number of vehicles in transit to customers at the end of Q1.
In addition, we began production and deliveries of Model 3 vehicles for overseas markets. As noted in our Q1 2019 Vehicle Production& Deliveries letter, due to unforeseen challenges we had only delivered half of the quarter’s numbers ten days before the end of thequarter. This caused a large number of vehicle deliveries to shift into Q2.
In Q1, we experienced non-recurring items that negatively impacted our net loss by $188 million. As a result of Q1 pricing actions taken
on Model S and Model X, we incurred net $121 million loss for increases in the assumed forecasted return rates for cars sold under our
Residual Value Guarantee and Buy Back Guarantee programs, as well as inventory write downs for used and service loaner inventory.
We also incurred $67 million due to a combination of restructuring and other non-recurring charges.
Vehicle production and deliveries
We produced roughly 63,000 Model 3 vehicles in Q1, which was approximately 3% more thanthe previous quarter. This improvement in production rate was modest mainly due to changes tothe production process for the introduction of new variants of Model 3, fewer working days and a
supplier limitation.

Mid-size premium sedan unit sales in Q1

We started production and deliveries of Model 3 vehicles for overseas markets during Q1. To
quickly meet international demand, Europe and China Model 3 builds occurred in the first half ofthe quarter, with builds for local US markets in the second half. This wave of quarter-end
deliveries in the US, China and Europe meant that even short delays caused deliveries to bedeferred to Q2. To improve our operations, cost efficiency and customer experience, we are in
the process of balancing our regional vehicle builds throughout the quarter.

Source: OEM Dataz

Price before incentives

Model 3 was yet again the best-selling premium car in the US in Q1, outselling the runner-up
by almost 60%. This is not surprising given that, for the first time in history, the price of anelectric vehicle is lower than its gas-powered equivalents. While global premium vehicle sales
reached 8 to 9 million units (depending on definition) last year, the Model 3 is attracting buyers
from other segments. Since introduction of Model 3 Standard Range and Standard Range
Plus, 69% of trade-ins were non-premium vehicles, indicating that Model 3 is demonstrating
appeal beyond the premium segment. Our global expansion for the Model 3 has just begun,
competing in a segment that is vastly larger than just the US. Model 3’s average selling price(ASP) in the US remains strong, as a majority of these orders are for long range or all-wheel
drive versions. We are also seeing increasing take rates of our Autopilot options, as this suiteof features improves.

Source: OEM Data

Deliveries of Model S and Model X declined to 12,100 vehicles in Q1 compared to our twoyear run rate of roughly 25,000 units per quarter. This decline was mainly caused by weaker
Q1 demand due to seasonality, pull-forward of sales into Q4 2018 in the U.S. due to the first scheduled reduction of the federal EV tax
credit in Q1 and discontinuation of our 75 kWh battery pack. We also had a mismatch between orders and deliverable cars. For
example, due to adjustments in pricing mid-quarter, the take rate for the performance versions of Model S and Model X increased fasterthan we were able to supply.
In Q1, the Model S and Model X production line was updated to accommodate the next generationof powertrain for these vehicles. Our flagship vehicles now have a longer range and better
performance. Model S, with a 370 mile (EPA) maximum range, and Model X, with a 325 mile (EPA)
maximum range, remain the longest range EVs ever made by a wide margin. These products
continue to lead in motor efficiency, allowing us to achieve improved range at a lower cost without
increasing the capacity of our battery packs. With an efficiency of 3.3 EPA miles / kWh, Model X is
at least 25% more energy efficient than other SUV electric vehicles (2.1 to 2.6 miles / kWh). These
efficiencies also enabled us to re-introduce more compelling standard range versions – Model S with

Tesla EPA range vs. competitors

Source: OEM Dataa 285 mile (EPA) maximum range and Model X with a 250 mile (EPA) maximum range – at an
improved price point.

Inventory in terms of days of sales

Unlike Model S and Model X, we do not build Model 3 vehicles to order. Rather, given its
significantly higher volume, we build different variants of Model 3 in batches (including
regional versions), and every vehicle that leaves the factory initially becomes inventory.
While in inventory, those vehicles are then matched to a specific order made by eachcustomer. As this was our first quarter delivering Model 3 outside of North America, we faced
challenges in ramping our logistics channels and increasing the capacity of our internationaldelivery operations. In addition to these factors, with a massive number of cars being
shipped globally from a single factory in Fremont, the international expansion of Model 3
unavoidably resulted in longer average shipping times and increased vehicles in transit.
Despite this, our global Model S, Model X and Model 3 inventory (including vehicles in transit
and vehicles owned by our sales and service organizations) at the end of Q1 equaled 30 daysof sales, less than half of US industry average and in line with our historical numbers.

Source: Autonews.com

Autopilot
We recently hosted our first ever Autonomy Investor Day, showcasing our new in-house designed full self-driving (FSD) computer and
our AI-based software trained by more than 400,000 Tesla vehicles. We expect this foundation will enable us to make our vehicles fullyautonomous (subject to regulatory approvals) through over-the-air software updates, enabling Tesla and our customers to use the Tesla
ride-hailing network fleet and generate income. Our new FSD computer is capable of processing 2,300 images per second, about 21times more than the processor we used previously.
A custom-made robotaxi capable of running about a million miles using a single battery pack, with all the sensors and computing power
for full autonomy, should cost less than $38,000 to produce. We believe low vehicle cost, low maintenance cost and an expected
powertrain efficiency of 4.5 miles per kWh should make this the lowest cost of ownership, and to be the most profitable autonomous taxi
on the market.
Capacity expansion – Gigafactory Shanghai and Model Y
For the past two years, our primary focus has been on Model 3 production ramp and cost. After all, it is imperative for the future of Tesla
to produce Model 3 vehicles at high volume with sustainable profitability. We have learned valuable lessons, not only about mass
manufacturing but also about capital efficiency, which are incorporated into our expansion plans.
Relative capex per unit of capacity

We intend Model 3 to be the first step in a platform which we can cost effectively andquickly replicate across geographies and vehicle types. We have spent years developing
this platform, and Gigafactory Shanghai and our planned Model Y production line will be
the first to reap the benefits of this investment. Learning from our experience, we can
now build a second-generation Model 3 line in China that we expect will be at least 50%
cheaper per unit of capacity than our Model 3-related lines in Fremont and at Gigafactory
1. Our Model Y manufacturing capacity will have the same simplicity as the line planned
for Gigafactory Shanghai.
The long-range version of Model Y will be an all-electric compact SUV priced at $48,000,
roughly $20,000 less than other all-electric SUVs. Given the well-appointed standard
equipment, superior acceleration and handling, interior size and up to 300 mile range that
we expect for Model Y and the size of the addressable market, we believe it will
ultimately have higher sales than Model S, Model X and Model 3 combined.

Energy generation and storage
In addition to focusing attention on growth of our vehicle production and deliveries, we are making exciting changes to improve ourenergy business. For residential solar and energy storage, traditional industry-wide sales techniques require customized systems,
installations and purchasing processes. This results in a cumbersome buying experience and limits market potential. As we have done
for the vehicle business, the key to accelerating mass adoption is to standardize the product offering, simplify the customer buying
experience, and focus on the markets with the strongest economics. This results in cost efficiencies, enabling industry leading pricing
and an expanded market. Our residential customers can now purchase solar and energy storage directly from our website, instandardized increments of capacity. We aim to put customers in a position of cash generation after deployment with only a $99 deposit
upfront. That way, there should be no reason for anyone not to have solar generation on their roof. Energy storage production in thesecond half of 2018 was limited by cell production as we routed all available Gigafactory 1 cell capacity to supply Model 3. Some
Gigafactory 1 cell production has been routed back to the energy storage business, enabling us to increase production in Q1 by roughly
30% compared to the previous quarter.

Q1 2019 RESULTS
Revenue & Gross Margin

Automotive revenue ($000)
Automotive gross margin – GAAP
Automotive gross margin excluding SBC
and ZEV credit – non-GAAP








20.3 %

24.7 %

18.8 %

ChangeQoQ-41 %-415 bp

YoY
36 %
43 bp

-438 bp149

bp

In Q1, we recognized $15 million in revenue from ZEV credit sales compared to less than $1 million in Q4 2018.
Approximately 2% of our vehicle deliveries were subject to lease accounting.
Model 3 gross margin declined slightly to ~20%.
Model S and Model X gross margin declined in Q1 predominantly due to reduced volume and pricing actions.
As a result of the pricing actions, we adjusted our sales return reserve for cars sold with a Resale Value Guarantee or Buy Back
Guarantee. This one-time adjustment had a negative revenue impact of $501 million with a corresponding decrease in automotive
cost of goods sold impact of $409 million resulting in a $92 million reduction in gross profit.

Energy generation and storage revenue ($000)
Energy generation and storage gross margin

Three Months Ended
March 31,
December 31,
March 31,
2019
2018
2018
$
3,723,861 $
6,323,219 $
2,735,317
20.2 %
24.3 %
19.7 %

Three Months Ended
March 31,
December 31,
March 31,
2019
2018
2018
$
324,661 $371,497 $
410,0222.4 %11.5 %
8.5 %ChangeQoQ-13 %-912 bpYoY-21 %-606 bp

Energy generation and storage revenue in Q1 decreased by 13% over Q4 2018. This decrease was mainly driven by lower solar
deployments that fell from 73 MW to 47 MW sequentially, which was partially offset by a 2% increase in storage deployments. A
new pricing and deployment strategy has been introduced in early Q2.
GAAP gross margin of the Energy generation and storage business in Q1 dropped to 2.4% compared to Q4 primarily due toreduced volume in the solar retrofit business.

Other Highlights







Service and Other revenue in Q1 decreased by 7% compared to Q4. This was predominantly due to decreased used car sales
which move directionally with total new vehicle deliveries.
Service and Other gross margin in Q4 declined sequentially to negative 39%. Total gross loss of Service and Other increased
compared to Q4. This increase is primarily attributed to used car inventory revaluation and reduction of ASP relating to new car
pricing actions.
Our total GAAP operating expenses increased to $1.09 billion in Q1, which was 6% more than in Q4 2018. Excluding restructuring
and other one-time items, operating expenses declined from Q4 2018 to Q1 2019.
Gains attributable to non-controlling interests impacted our income statement negatively by $35 million in Q1.
Interest and Other expenses were $123 million in Q1 compared to $182 million in Q4. This reduced due to the repayment of the$920 million convertible notes and foreign exchange fluctuations primarily from a weaking euro. Non-cash items accounted for $66
million of total interest expense.
We adopted the new leasing standard, ASC 842 on January 1, 2019, which resulted in (i) recognition of right-of-use assets of $1.29
billion (as “Operating lease right-of-use assets”) and lease liabilities of $1.24 billion for operating leases on the consolidated balance
sheet, and (ii) de-recognition of build-to-suit lease assets (from “Property, plant & equipment”) and liabilities of $1.62 billion and$1.74 billion, respectively, with the net impact of $96.7 million recorded to accumulated deficit.

Cash Flow and Liquidity

Our cash position decreased from $3.7 billion to $2.2 billion mainly due to a $920 million repayment of convertible notes, of which$188 million negatively impacted operating cash flow.
Gigafactory Shanghai will be almost fully funded through local debt. Thus far, we have secured an approximately $522 million (as at
March 31, 2019) credit line from local banks.
Our capital expenditures were $280 million in Q1 including early investments for Gigafactory Shanghai.

OUTLOOK
Although we are driving towards higher internal goals, we reaffirm our prior guidance of 360,000 to 400,000 vehicle deliveries in 2019,representing an increase of approximately 45% to 65% compared to 2018. Please note that vehicle production will be significantly higher
than deliveries, as it takes several weeks to transport cars from California to distant customers, especially in other countries, where theymust also be processed by customs. Deliveries, production and customer orders, which are all materially different, are often conflated
when analyzing Tesla.
If our Gigafactory Shanghai is able to reach volume production early in Q4 this year, we may be able to produce as many as 500,000
vehicles globally in 2019. This is an aggressive schedule, but it is what we are targeting. However, based on what we know today, being
able to produce over 500,000 vehicles globally in the 12-month period ending June 30, 2020 does appear very likely.
We continue to target a 25% non-GAAP gross margin on Model S, Model X and Model 3, depending on variant mix and option take rates
as our product offerings change.
In response to the operational challenges we experienced with international expansion in Q1, we are in the process of balancing our
regional vehicle builds throughout the quarter. This provides an opportunity for additional cost efficiencies in our factory, supply chain,logistics operations and delivery centers.
With the recently announced product improvements on Model S and Model X, as well as continued expansion of Model 3 globally, we
expect our order rate to continue to increase throughout the year as our production levels increase. We believe we will deliver between
90,000 and 100,000 vehicles in Q2. Although it is possible to deliver a higher number of vehicles, we believe it is important to begin
unwinding the "wave" approach to vehicle deliveries, where overseas cars have been made in the first half of the quarter and North
American cars have been made in the second half. This puts extreme stress on Tesla, negatively affects our working capital needs andadds to our cost structure.
Energy generation and storage revenue should increase significantly in 2019. This increase is driven mainly due to the storage businessas we increase production to address our backlog in Powerwall orders and deliver on our pipeline of orders for commercial storage andan expected growth in retrofit solar deployments in the second half of 2019. The gross margin of our Energy generation and storage
business should grow as the energy storage margin continues to improve from its current level.
We expect our Services and Other business to grow as our fleet size and used car volumes increase. We have refocused on
operational efficiency of these businesses and are targeting gross margin improvements throughout this year.
Our 2019 capex, the vast majority of which will be to grow our capacity and develop new vehicles, is expected to be about $2.0 to $2.5
billion. We believe this amount should be sufficient to continue to develop our main projects, such as Gigafactory Shanghai, Model Y
and Tesla Semi, as well as for the further expansion of our Supercharger and service networks.
Operating cash flow less capex should be positive in every quarter including Q2. 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.

Elon Musk

Zachary Kirkhorn

WEBCAST INFORMATION
Tesla will provide a live webcast of its first quarter 2019 financial results conference call beginning at 2:30 p.m. PT on April 24, 2019, at
ir.tesla.com. This webcast will also be available for replay for approximately one year thereafter.
NON-GAAP FINANCIAL INFORMATION
Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis to supplement ourconsolidated financial results. Our non-GAAP financial measures include non-GAAP gross margin, non-GAAP net income (loss)
attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders on a per share basis, andoperating cash flows less capital expenditures. Management believes that it is useful to supplement its GAAP financial statements withthis non-GAAP information because management uses such information internally for its operating, budgeting and financial planningpurposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance aswell as comparisons to the operating results of other companies. Management also believes that presentation of the non-GAAP financial
measures provides useful information to our investors regarding our financial condition and results of operations because it allows
investors greater transparency to the information used by Tesla management in its financial and operational decision-making so thatinvestors can see through the eyes of Tesla management regarding important financial metrics that Tesla management uses to run thebusiness as well as allows investors to better understand Tesla’s performance. Non-GAAP information is not prepared under acomprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S.
GAAP when understanding Tesla’s operating performance. A reconciliation between GAAP and non-GAAP financial information isprovided below.
FORWARD-LOOKING STATEMENTS
Certain statements in letter, including statements in the “Outlook” section; statements relating to the development, production, ramp,
timing, specifications and benefits of existing and future Tesla products, features and technologies such as Model 3, Autopilot, full self
driving, the Tesla ride-hailing network, Tesla robotaxis, our solar offerings, Model Y, Tesla Semi and Supercharger; statements regarding
growth in service and Supercharger networks; statements regarding growth of our energy business and the means to achieve suchgrowth; statements regarding the potential size and growth of market opportunities for Tesla products and the catalysts for that growth;statements regarding the ability to achieve our targets with respect to product demand, volume, orders, production, deliveries, market
share, inventory and deployment; statements regarding revenue, cash availability and generation, cash flow, gross margin, productpricing, cost of ownership, spending, capital expenditure and profitability targets; statements regarding productivity improvements, cost
reductions and capacity expansion plans, such as for customer deliveries, logistics and vehicle servicing; statements regarding the Tesla
Factory, Gigafactory 1, Gigafactory Shanghai and manufacturing of Model Y, including cost, project financing and timing, plans andoutput expectations, including those related to vehicle, battery and other production; and statements regarding the impact of changes toour customer delivery infrastructure, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking
statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ
materially from those projected. The following important factors, without limitation, could cause actual results to differ materially fromthose in the forward-looking statements: the risk of delays in the manufacture, production, delivery and/or completion of our vehicles andenergy products and features; the ability of Tesla to design and grow simultaneous and separate market acceptance of and demand forModel S, Model X, Model 3 and their variants, as well as new vehicle models such as Model Y; the ability of suppliers to meet quality andpart delivery expectations at increasing volumes, especially with respect to Model 3 parts; adverse foreign exchange movements; any
failures by Tesla products to perform as expected or if product recalls occur; Tesla’s ability to continue to reduce or control
manufacturing and other costs; consumers’ willingness to adopt electric vehicles; competition in the automotive and energy productmarkets generally and the alternative fuel vehicle market and the premium sedan, premium SUV and small to medium-sized sedan
markets in particular; Tesla’s ability to establish, maintain and strengthen the Tesla brand; Tesla’s ability to manage future growtheffectively as we rapidly grow, especially internationally; the unavailability, reduction or elimination of government and economic
incentives for electric vehicles and energy products; Tesla’s ability to establish, maintain and strengthen its relationships with strategic
partners such as Panasonic; potential difficulties in performing and realizing potential benefits under definitive agreements for our
existing and future manufacturing facilities; Tesla’s ability to maintain schedules, output and cost estimates for our manufacturing
facilities; and Tesla’s ability to execute on our strategy for service center, Supercharger and other locations and capabilities. Moreinformation on potential factors that could affect our financial results is included from time to time in our Securities and Exchange
Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in our annual report on Form 10K filed with the SEC on February 19, 2019. Tesla disclaims any obligation to update information contained in these forward-looking
statements whether as a result of new information, future events, or otherwise.

Investor Relations Contact:
Martin Viecha
Investor Relations
ir@tesla.com

Press Contact:
Dave Arnold
Communications
press@tesla.com

Tesla, Inc.
Summary of Key Metrics(Unaudited)(In thousands, except metrics and per share data)

March 31,2019
14,16362,975Model S/X production
Model 3 production
Model S/X deliveries
Model 3 deliveries
Vehicles sold under lease accounting (%)

Three Months Ended
December 31,
2018
25,161
61,394

ChangeMarch 31,2018
24,728
9,766

QoQ

YoY
-44 %
3%

-43 %
545 %

12,09150,9282%

27,607
63,3594%

21,815
8,182
8%

-56 %
-20 %
-2 %

-45 %
522 %
-6 %

Solar deployed
Storage deployed
Residential solar cash & loan (%)

47
229
73 %

73
225
75 %

76
373
63 %

-36 %
2%
-2 %

-38 %
-39 %
10 %

Store and service locations
Mobile service fleet

377
550

378
411

339
248

0%
34 %

11 %
122 %

1,490
12,76722,3991,421
12,002
21,541

1,205
9,372
16,941

5%
6%
4%

24 %
36 %
32 %

3,408,751

-37 %

33 %

Supercharger stations
Supercharger connectors
Destination charging connectors
Total revenues
Automotive gross margin excluding SBC
and ZEV credit – non-GAAP
Total GAAP gross margin$

Operating expenses(Loss) income from operations
Operating margin$

Net (loss) income per share attributable tocommon stockholders, diluted - GAAP
Net (loss) income per share attributable tocommon stockholders, diluted - non-GAAPNet cash (used in) provided byoperating activities
Capital expenditures
Operating cash flow less capital expenditures
Cash and cash equivalents

4,541,464$

7,225,873$

20.3 %

24.7 %

18.8 %-4.4 %

1.5 %

12.5 %

20.0 %

13.4 %-7.5 %-0.9 %

1,053,500(596,974 )-17.5 %

6%-226 %-17.2 %

3%
-13 %
6.0 %

1,087,574 $(521,831 )-11.5 %

1,029,364 $
413,536
5.7 %(4.10 )

0.78

(4.19 )

-626 %-2 %(2.90 )

1.93

(3.35 )

-250 %-13 %$(639,606 )$

1,234,561$(398,376 )-152 %

61 %$(279,932 )(919,538 )$(324,978 )909,583$(655,662 )(1,054,038 )-14 %-201 %

-57 %
-13 %

$

2,198,169$

3,685,618$

2,665,673

-40 %

-18 %

Tesla, Inc.
Condensed Consolidated Statements of Operations(Unaudited)(In thousands, except per share data)

March 31,2019
Revenues
Automotive sales
Automotive leasing
Total automotive revenue
Energy generation and storage
Services and otherTotal revenues
Cost of revenues
Automotive sales
Automotive leasing
Total automotive cost of revenues
Energy generation and storage
Services and otherTotal cost of revenues
Gross profit
Operating expenses
Research and development
Selling, general and administrative
Restructuring and otherTotal operating expenses(Loss) income from operations
Interest income
Interest expense
Other income (expense), net(Loss) income before income taxes
Provision for income taxes
Net (loss) income
Net income (loss) attributable to noncontrollinginterests and redeemable noncontrollinginterests
Net (loss) income attributable to common
stockholders
Net (loss) income per share of common stock
attributable to common stockholders –basic and diluted
Basic
DilutedWeighted average shares used in computing
net (loss) income per share ofcommon stock – basic and diluted
Basic
Diluted$Three Months Ended
December 31,
2018

3,508,741
215,120
3,723,861
324,661
492,942
4,541,464$

6,073,471
249,748
6,323,219
371,497
531,157
7,225,873

March 31,2018$

2,561,881
173,436
2,735,317
410,022
263,4123,408,751

2,856,209
117,092
2,973,301
316,887
685,533
3,975,721
565,7434,658,517
127,731
4,786,248
328,706
668,019
5,782,973
1,442,900

2,091,397
104,496
2,195,893
375,363
380,969
2,952,225
456,526

340,174
703,929
43,471
1,087,574(521,831 )
8,762(157,453 )
25,750(644,772 )
22,873(667,645 )

356,297
667,452
5,615
1,029,364
413,536
7,348(174,723 )(14,205 )
231,956
21,878210,078

367,096
686,404—
1,053,500(596,974 )
5,214(149,546 )(37,716 )(779,022 )5,605(784,627 )

34,49070,595(75,076 )$(702,135 ) $139,483$(709,551 )$$(4.10 ) $(4.10 ) $

0.81
0.78

$
$

(4.19 )
(4.19 )

172,989
172,989

172,026
179,026

169,146
169,146

Tesla, Inc.
Condensed Consolidated Balance Sheets(Unaudited)(In thousands)
March 31,
2019
AssetsCurrent assets
Cash and cash equivalents
Restricted cash
Accounts receivable, net
Inventory
Prepaid expenses and other current assets
Total current assets
Operating lease vehicles, net
Solar energy systems, net
Property, plant and equipment, net
Operating lease right-of-use assets
Goodwill and intangible assets, net
MyPower customer notes receivable, net of current portion
Restricted cash, net of current portion
Other assets
Total assets
Liabilities and Equity
Current liabilities
Accounts payable
Accrued liabilities and other
Deferred revenue
Resale value guarantees
Customer deposits
Current portion of long-term debt and finance leases (1)Total current liabilities
Long-term debt and finance leases, net of current portion (1)Deferred revenue, net of current portion
Resale value guarantees, net of current portion
Other long-term liabilities
Total liabilities
Redeemable noncontrolling interests in subsidiaries
Total stockholders' equity
Noncontrolling interests in subsidiaries
Total liabilities and equity(1) Breakdown of our debt is as follows:
Recourse debt
Non-recourse debt$

December 31,
2018

2,198,169 $
130,950
1,046,945
3,836,850
464,908
7,677,822
1,972,502
6,241,637
9,850,929
1,253,027
347,880
413,181353,679
801,867
28,912,524 $3,685,618
192,551
949,022
3,113,446
365,671
8,306,308
2,089,758
6,271,396
11,330,077—
350,651
421,548398,219571,657
29,739,614$

3,248,827 $
2,276,951
762,810480,225
768,276
1,705,711
9,242,800
9,787,950
1,157,343
211,3902,475,135
22,874,618
570,284
4,605,596
862,026
28,912,524 $3,404,451
2,094,253
630,292
502,840
792,601
2,567,699
9,992,136
9,403,672
990,873
328,926
2,710,403
23,426,010
555,964
4,923,243
834,397
29,739,614$$

6,517,022 $3,485,597 $

7,080,584
3,551,891$$

Tesla, Inc.
Condensed Consolidated Statement of Cash Flows(Unaudited)(In thousands)

March 31,2019
Cash Flows from Operating Activities
Net (loss) income
Adjustments to reconcile net (loss) income to net
cash (used in) provided by operating activities:
Depreciation, amortization and impairment
Stock-based compensation
Operating cash flow related to repayment of discounted
convertible notes
Other
Changes in operating assets and liabilities,
net of effect of business combinations
Net cash (used in) provided byoperating activities
Cash Flows from Investing Activities
Capital expenditures
Payments for the cost of solar energy systems,
net
Business combinations, net of cash acquired
Net cash used in investing activities
Cash Flows from Financing Activities
Net cash flows from debt activities
Collateralized lease repayments
Net (repayments) borrowings under Warehouse
Agreements and automotive asset-backed notes
Net cash flows from noncontrolling interests - Auto
Net cash flows from noncontrolling interests - Solar
Other
Net cash (used in) provided by financing activities
Effect of exchange rate changes oncash and cash equivalents andrestricted cash
Net (decrease) increase in cash andcash equivalents and restricted cash
Cash and cash equivalents and restricted cash
at beginning of period
Cash and cash equivalents and restricted cash
at end of period$$

Three Months Ended
December 31,
2018

March 31,2018

(667,645 ) $210,078

467,577
208,378496,737
205,313416,233
141,639(188,107 )
216,292—
123,385—
153,805(676,101 )199,048(325,426 )(639,606 )

1,234,561(398,376 )(279,932 )(324,978 )(655,662 )(25,261 )(650 )(305,843 )(28,923 )(11,108 )(365,009 )(72,975 )—(728,637 )(518,112 )(133,891 )(184,099 )(216,081 )

172,865(87,092 )(32,944 )(32,866 )(13,159 )
77,953(653,019 )

193,086
37,575(18,567 )
75,777(112,309 )

174,028
24,599(6,758 )94,018371,660

4,878(3,821 )10,102(1,593,590 )

753,422(745,251 )

4,276,388

3,522,966

3,964,959

2,682,798$

4,276,388$$(784,627 )

3,219,708

Tesla, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information(Unaudited)(In thousands, except per share data)

Automotive gross profit – GAAP
Stock-based compensation expensein automotive cost of revenue
ZEV credit revenue recognized
Automotive gross profit excluding SBC and
ZEV credit – non-GAAPMarch 31,2019$
750,560
16,560(15,412 )$Automotive gross margin – GAAP
Stock-based compensation expense
ZEV credit revenue recognized
Automotive gross margin excluding SBC
and ZEV credit – non-GAAP
Net (loss) income attributable to common
stockholders – GAAP
Stock-based compensation expense
Net (loss) income attributable to common
stockholders – non-GAAP
Net (loss) income per share attributable tocommon stockholders, basic – GAAP
Stock-based compensation expense
Net (loss) income per share attributable tocommon stockholders, basic – non-GAAP

751,708

22,566(768 )$

1,558,769

15,078(50,314 )$504,188

20.2 %
0.4 %-0.3 %

24.3 %
0.4 %0.0 %19.7 %
0.6 %-1.5 %

20.3 %

24.7 %

18.8 %$(702,135 )
208,378$

139,483
205,313$(709,551 )
141,639$(493,757 )$

344,796$(567,912 )$(4.10 )
1.20

$

0.81
1.19

$

(4.19 )
0.84$

(2.90 )

$

2.00

$

(3.35 )

Shares used in per share calculation,
basic – GAAP and non-GAAP
Net (loss) income per share attributable tocommon stockholders, diluted - GAAP
Stock-based compensation expense
Net (loss) income per share attributable tocommon stockholders, diluted - non-GAAP
Shares used in per share calculation,
diluted - GAAP and non-GAAP

Three Months Ended
December 31,
March 31,
2018
2018
$
1,536,971$
539,424

172,989

172,026

169,146$(4.10 )
1.20

$

0.78
1.15

$

(4.19 )
0.84$

(2.90 )

$

1.93

$

(3.35 )

172,989

179,026

169,146