Tesla is a Change Leader and should be in model retirement portfolios.
Total non-GAAP revenue was USD 1.10 billion for the quarter, up 55% from a year ago, while GAAP revenue was USD 940 million. Tesla achieved a Q1 gross margin of 28.2% on a non-GAAP basis and 27.7% on a GAAP basis. Automotive revenue was USD 1.06 billion on a non-GAAP basis, and is comprised of GAAP Automotive revenue of USD 893.3 million plus a net increase of USD 163.7 million in deferred revenue and other long-term liabilities as a result of lease accounting.
10,045 Model S vehicles were delivered in Q1, in line with company’s April announcement of approximately 10,030 deliveries.The average selling price of Model S increased slightly during the quarter, reflecting a full quarter of sales of P85D and the introduction of 85D.This mix improvement was partially offset by the effect of the strong USD,which negatively impacted both – the average selling price and thus revenue by slightly more than 3% from the prior quarter. As in previous quarters the company offered small discounts when selling vehicles used for either marketing or as service loaners. These discounts were consistent with last quarter.
Q1 Automotive revenue included USD 66 million of total regulatory credit revenue, of which USD 51 million came from the sale of Zero Emissions Vehicle (ZEV) credits.In Q1, Tesla directly leased 592 cars to customers, which was worth USD 63 million of aggregate retail value.Q1 Automotive gross margin excluding ZEV credits was on plan at 26.0% on a non-GAAP basis,and 25.0% on a GAAP basis. The 330 basis points of sequential improvement in non-GAAP gross margin was driven by lower manufacturing costs and richer mix, offset partially by the strong dollar,expedited shipping costs related to port delays and an increase in warranty reserves of about USD 200 per car.