Q3 2023 Update1Highlights 03Financial Summary04Operational Summary06Vehicle Capacity 07Core Technology08Other Highlights09Outlook10Photos & Charts 11Key Metrics16Financial Statements19Additional Information25S U M M A R YH I G H L I G H T S (1) Excludes SBC (stock-based compensation)(2) Free cash flow = operating cash flow less capex(3) Includes cash, cash equivalents and investments(4) Calculated by dividing Cost of Automotive Sales Revenue by respective quarter’s new deliveries (ex-operating leases)Profitability7.6% operating margin in Q3$1.8B GAAP operating income in Q3$1.9B GAAP net income in Q3$2.3B non-GAAP net income1 in Q3Our main objectives remained unchanged in Q3-2023: reducing cost per vehicle, free cash flow generation while maximizing delivery volumes and continued investment in AI and other growth projects.Our cost of goods sold per vehicle4 decreased to ~$37,500 in Q3. While production cost at our new factories remained higher than our established factories, we have implemented necessary upgrades in Q3 to enable further unit cost reductions. We continue to believe that an industry leader needs to be a cost leader.During a high interest rate environment, we believe focusing on investments in R&D and capital expenditures for future growth, while maintaining positive free cash flow, is the right approach. Year-to-date, our free cash flow reached $2.3B while our cash and investments position continues to improve.We have more than doubled the size of our AI training compute to accommodate for our growing dataset as well as our Optimus robot project. Our humanoid robot is currently being trained for simple tasks through AI rather than hard-coded software, and its hardware is being further upgraded.Lastly, with a combined gross profit generation of over $0.5B in Q3, our Energy Generation and Storage business and Services and Other business have become meaningful contributors to our profitability.CashOperating cash flow of $3.3B in Q3Free cash flow2 of $0.8B in Q3$3.0B increase in our cash and investments3 QoQ to $26.1BOperations4.0 GWh of Energy Storage deployed in Q3More than doubled AI training computeF I N A N C I A LS U M M A R Y(Unaudited)($ in millions, except percentages and per share data)Q3-2022Q4-2022Q1-2023Q2-2023Q3-2023YoYTotal automotive revenues18,69221,307 19,96321,26819,6255%Energy generation and storage revenue1,1171,310 1,5291,5091,55940%Services and other revenue1,6451,701 1,8372,1502,16632%Total revenues21,45424,31823,32924,92723,3509%Total gross profit5,3825,7774,5114,5334,178-22%Total GAAP gross margin25.1%23.8%19.3%18.2%17.9%-719 bpOperating expenses1,694 1,876 1,8472,134 2,41443%Income from operations3,688 3,901 2,6642,399 1,764-52%Operating margin17.2%16.0%11.4%9.6%7.6%-964 bpAdjusted EBITDA4,968 5,404 4,267 4,653 3,758-24%Adjusted EBITDA margin23.2%22.2%18.3%18.7%16.1%-706 bpNet income attributable to common stockholders (GAAP)3,292 3,687 2,513 2,703 1,853-...
