Tesla, Inc. (NASDAQ:TSLA) Q3 2019 Earnings Conference Call - Final Transcript
Oct 23, 2019 • 06:30 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to Tesla's Q3 2019 Financial Results and Q&A Webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. We ask that you limit yourself to one question and one follow-up question. [Operator Instructions]
I would now like to hand the conference over to your speaker, Mr. Martin Viecha, Senior Director of Investor Relations. Please go ahead.
Thank you, Sherry, and good afternoon, everyone, and welcome to Tesla's third quarter 2019 Q&A webcast. I'm joined today by Elon Musk, Zachary Kirkhorn and a number of other executives. Our Q3 results were announced at about 2:00 PM Pacific Time in the update deck 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 limit yourself to one question and one follow-up. Please press star one now if you would like to join the question queue.
But before we jump into Q&A, Elon has some opening remarks. Elon?
Elon R. Musk
Thank you. First of all, I'd like to just thank the Tesla team for an incredible job this quarter. The execution was outstanding and -- on just about every front. So it's just an honor to work with such a great team.
Q3 was obviously a very strong quarter and we had record deliveries, we're able to make great strides and controlling our costs. We shifted back to GAAP profitability while also generating strong free cash flow. And again, this would not be possible without each employee doing their part to reduce cost. Our operating cost is now at the lowest level since Model 3 production started.
Regarding Gigafactory, Shanghai, this month we started with trial production at Giga Shanghai and built four [Phonetic] vehicles from body, to paint, to general assembly. So this is a -- more emphasis this is [Phonetic] a real factory with a tremendous amount of equipment in it. While a lot of people see the outside show the factory, which is enormous, and it was essentially under water in January. It was below the water table literally. What is, I think, much more significant is that we're able to install massive stamping machines, fully operational paint shop and a sophisticated general assembly line in the same period of time, in parallel with bogue building I'd like to thank our transient for this extraordinary achievement I'm not aware of any factory of this magnitude in history being constructed in such a short period of time, approximately 10 months. As far as I know, this is unprecedented. And Gigafactory Shanghai will become a template for future growth. We're planning to build model-wise in Shanghai