Tesla
highlights summary cash operating cash flow less free cash flow negative in of which outflow due to inventory growth net income in the seasonally weak first quarter despite global operational challenges we were able to achieve our best first quarter for both production and deliveries profitability operating income operating margin in although impacted by inefficiencies related to the temporary suspension of production and deliveries in many locations our gross margin remained strong at shanghai further volume growth resulted in a material improvement in margins of locally made model vehicles in addition model contributed profits which is the first time net income non net income in in our history that a new product has been profitable in its first quarter gross margin at shanghai approaching level of us made model model gross margin positive in operations model deliveries began significantly ahead of schedule increased model range to miles with no increase in battery capacity reached production of solar roofs in a single week despite the expiration of various government incentives at the end of last year was pacing to be the quarter of deliveries until our operations were interrupted in march as a result we remain confident in growing global production capacity as quickly as possible we are continuing to significantly invest in our product including improvements in technology as well as localizing production in shanghai and berlin at the same time we are diligently managing working capital reducing non critical spend and driving productivity improvements we believe we are well positioned to manage near term uncertainty while achieving our long term plans | Tesla
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April 2020
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3 of 25
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