These Key Factors Were behind Tesla’s Solid 1Q17 Revenues


Dec. 4 2020, Updated 10:53 a.m. ET

Tesla’s 1Q17 revenues

In 1Q17, Tesla (TSLA) reported GAAP (generally accepted accounting principles) revenues of $2.7 billion, which reflected an increase of 135% YoY (year-over-year) from $1.1 billion in revenues in the corresponding quarter of the previous year. Also, the company’s 1Q17 revenues reflected an increase of about 17% on a quarter-over-quarter basis. In 4Q16, Tesla posted GAAP revenues of $2.3 billion.

In 3Q16, Tesla discontinued providing non-GAAP financial figures. The difference between GAAP and non-GAAP revenues is due to the differential treatment of lease accounting. While GAAP mandates lease revenues to be recognized throughout the life of the lease, Tesla used to report a non-GAAP set of numbers in which the company recognized lease revenues as upfront revenues.

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Push from solid 1Q17 deliveries

In 1Q17, Tesla delivered 25,051 vehicle units to customers with an impressive YoY increase of about 69% from 14,820 vehicle units delivered in 1Q16. Similarly, the company’s 1Q deliveries in 2017 also reflected a 13% quarter-over-quarter rise.

With the help of these stronger deliveries, Tesla managed to generate a revenue of $2.3 billion from its automotive segment, about 123% higher YoY.

Energy and other segment revenues

The company’s revenues from its energy generation and storage segment also rose to $213 million in 1Q17 from just $131 million in the previous quarter. In addition, Tesla’s other revenues jumped up 21% quarter-over-quarter to $193 million.

During the first quarter this year, Tesla vehicles’ ATP (average transaction price) also improved on a quarter-over-quarter basis. The company attributed this improvement to a favorable product mix, as more customers opted for a high-end version of Tesla Model S and Model X during the quarter.

Tesla’s annual vehicle production is still just a fraction of the annual vehicle production of mainstream automakers (XLY) including General Motors (GM), Ford (F), and Toyota (TM).

Continue to the next part to learn about Tesla’s 1Q17 gross margins.


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