On this episode of Financial Festivities, recorded on October 25th, 2021, Grant premieres “Amateur Analysis,” a new segment where he dives into the specifics of a company’s financials. Furthermore, the host lists and explains the most insightful balance sheet figures, and how they are used in pricing metrics. Finally, Grant breaks down Tesla’s stock and data from the firm’s 2021 Q3 earnings report.

*Correction: Tesla’s D/E ratio based on 2021 Q3 data is 1.03, not 0.97.

*Grant Preves is only sharing information, not providing financial advice. Investors assume risk and must complete their own research.*

Music Credit: Eat My Dust by Rocket Start

Sources: 

Reading A Balance Sheet: Investopedia

How To Analyze Stock Metrics: Prairie Ridge Wolf Prints

Tesla – Hertz Deal: The Verge

Tesla 2021 Q3 Report: SEC 10-Q Filing

Tesla 2021 Q3 Shareholder Deck: Tesla Investor Relations

Tesla, Inc Stock Info  (from October 25th, 2021 – date of recording)

Open: $950.53

Close: $1,024.86

High: $1,045.02

Low: $944.20

Market Capitalization: $1.01 Trillion

Notable 2021 Q3 Financials (released October 20th, 2021):

• Revenue: 13.76 B (up 57% YoY)
• Revenue from automotives: 12.06 B (up 58% YoY) (279 M of which were sales of regulatory credits – down 30% YoY) 
• Total Gross Profit: 3.66 B (up 77% YoY)
• Gross Margin: 26.6% (GAAP) (up 308 basis points YoY) 
• Net Income: 1.62 B (GAAP) (up 389% YoY)
• Net Income: 2.09 B (non-GAAP) (up 139% YoY)
• Free Cash Flow: 1.33 B (Down 5% YoY)
• Cash/Cash Equivalents: 16.07 B (Up 11% YoY)

Metrics Based off 2021 Q3 Data:

• Diluted EPS: 1.44 (GAAP) (up 433% YoY)
• Diluted EPS: 1.86 (non-GAAP) (up 145% YoY)
• P/E Ratio: 332.57 (as of October 25th, 2021 @ close)
• D/E Ratio 1.03

2021 Q3 Expectations: 

EPS: Beat by 15.22%

Revenue: Beat by 0.40%

Notable 2021 Q3 Automotive Data:

Model S/X Production: 8,941 vehicles (down 47% YoY)

Model 3/Y Production: 228,882 vehicles (up 79% YoY)

Total Production: 237,823 vehicles (up 64% YoY)

Model S/X Deliveries: 9,289 vehicles (down 39% YoY)

Model 3/Y Deliveries: 232,102 vehicles (up 87% YoY)

Total Deliveries: 241,391 vehicles (up 73% YoY)

California Current  Factory Capacity:

• Model S/X: 100,000 vehicles
• Model 3/Y: 100,000 vehicles

Shanghai Current Factory Capacity:

• Model 3/Y: > 450,000 vehicles

Berlin Factory (In Construction)

• Model Y: TBD

Texas Factory (In Construction)

• Model Y: TBD
• Cybertruck: TBD