Tesla, Inc. (NASDAQ:TSLA) Q4 2018 Earnings Conference Call Transcript
Jan 30, 2019 • 05:30 pm ET
Good day, ladies and gentlemen, and welcome to the Tesla, Inc. Q4 2018 Financial Results and Q&A Webcast. (Operator Instructions) As a reminder, this conference is being recorded. I would like to introduce your host for today's call, Mr. Martin Viecha, Senior Director of Investor Relations. Mr. Viecha, you may begin.
Thank you, Sherry, and good afternoon, everyone. Welcome to Tesla's Fourth Quarter 2018 Q&A Webcast. I'm joined today by Elon Musk, J.B. Straubel, Deepak Ahuja and a number of other executives. Our Q4 results were announced at about 1 p.m. Pacific Time in the update letter we published at the same link as this webcast.
During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC. During the question-and-answer portion of today's call, please limite yourself to one question and one follow-up. (Corporate Instructions).
But before we jump into Q&A, Elon has some opening remarks. Elon?
Elon R. Musk
Thanks, Martin. Last year was definitely the most challenging year in Tesla history, but also the most successful. Thanks to the incredible work of the Tesla team, Model 3 became the best-selling premium vehicle in the US for 2018. And in fact, when considering battery electric vehicles, Tesla achieved an 80% market share of US sales in the last year. I think this point is perhaps not well appreciated. All other electric vehicles combined were 20% of sales in the US in last year. So I think that's not bad.
We also delivered -- also made vehicles last year as we did in all prior years combined, which is a tremendous achievement by the Tesla team. If you track Tesla vehicle production year-over-year, cumulative sales deliveries year-over-year, it is about the cleanest exponential I've ever seen. We've basically almost doubled our fleet every year. Every year, we make as many cars as we did in all prior years. So this is a very unusual thing to see for -- especially for a large complex manufactured object. I think it may be the fastest that a complex manufactured object like a car has grown in history, or at least I'm not aware of anything that is faster. And Martin, are you (inaudible)?
I'm not sure. I think Model 3 was a little bit slower, but I'm not 100% sure.
Elon R. Musk
Okay. And we expect that exponential to continue. So with the deliveries this year being -- even in the face of -- if there's a global recession -- even if there's a global recession, we're expecting deliveries this year to be about 50% higher than last year. And it could be a lot more than that. But even with tough economic times, to receive 50% growth is pretty nutty.
Over Q4, we achieved GAAP profitability for the second quarter for the first time in the company