Using the four-year financial statements of Tesla 2017-2020 (Appendix 2), evaluate and explain the profitability, solvency, liquidity, activity and market dimensions of Tesla’s financial performance highlighting the main weaknesses and strengths of Tesla.
Consolidated Statements of Cash Flows
(in millions of $) |
|
|
Items |
2017 |
2018 |
2019 |
2020 |
|
Cash Flows from Operating Activities |
|
|
|
|
|
Net income (loss) |
(2,241) |
(1,063) |
(775) |
862 |
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation, amortization and impairment |
1,636 |
1,901 |
2,154 |
2,322 |
|
Stock-based compensation |
467 |
749 |
898 |
1,734 |
|
Amortization of debt discounts and issuance costs |
91 |
159 |
188 |
180 |
|
Inventory and purchase commitments write-downs |
132 |
85 |
193 |
202 |
|
Loss on disposals of fixed assets |
106 |
162 |
146 |
117 |
|
Foreign currency transaction net loss (gain) |
52 |
(2) |
(48) |
114 |
|
Loss (gain) related to SolarCity acquisition |
58 |
--- |
--- |
--- |
|
Non-cash interest and other operating activities |
135 |
49 |
186 |
228 |
|
Operating cash flow related to repayment of discounted
convertible senior notes |
--- |
— |
(188) |
— |
|
Changes in operating assets and liabilities, net of effect of
business combinations: |
|
|
|
|
|
Accounts receivable |
(25) |
(497) |
(367) |
(652) |
|
Inventory |
(179) |
(1,023) |
(429) |
(422) |
|
Operating lease vehicles |
(1,523) |
(215) |
(764) |
(1,072) |
|
Prepaid expenses and other current assets |
(72) |
(82) |
(288) |
(251) |
|
Other non-current assets |
(15) |
(207) |
115 |
(344) |
|
Accounts payable and accrued liabilities |
388 |
1,797 |
646 |
2,102 |
|
Deferred revenue |
469 |
406 |
801 |
321 |
|
Customer deposits |
170 |
(96) |
(58) |
7 |
|
Resale value guarantee |
209 |
|
|
|
|
Other long-term liabilities |
81 |
(25) |
(5) |
495 |
|
Net cash provided by operating activities |
(61) |
2,098 |
2,405 |
5,943 |
|
Cash Flows from Investing Activities |
|
|
|
|
|
Purchases of property and equipment excluding finance leases, net
of sales |
(3,415) |
(2,101) |
(1,327) |
(3,157) |
|
Purchases of solar energy systems, net of sales |
(667) |
(218) |
(105) |
(75) |
|
Receipt of government grants |
--- |
— |
46 |
123 |
|
Purchase of intangible assets |
--- |
— |
(5) |
(10) |
|
Business combinations, net of cash acquired |
(115) |
(18) |
(45) |
(13) |
|
Net cash used in investing activities |
(4,197) |
(2,337) |
(1,436) |
(3,132) |
|
Cash Flows from Financing Activities |
|
|
|
|
|
Proceeds from issuances of common stock in public offerings, net of
issuance costs |
400 |
— |
848 |
12,269 |
|
Proceeds from issuances of convertible and other debt |
7,138 |
6,176 |
10,669 |
9,713 |
|
Repayments of convertible and other debt |
(3,995) |
(5,247) |
(9,161) |
(11,623) |
|
Repayments of borrowings issued to related parties |
(165) |
(100) |
— |
— |
|
Collateralized lease repayments |
511 |
(559) |
(389) |
(240) |
|
Proceeds from exercises of stock options and other stock issuances |
259 |
296 |
263 |
417 |
|
Principal payments on finance leases |
(103) |
(181) |
(321) |
(338) |
|
Debt issuance costs |
(63) |
(15) |
(37) |
(6) |
|
Purchase of convertible note hedges |
(204) |
— |
(476) |
— |
|
Proceeds from settlement of convertible note hedges |
287 |
--- |
--- |
--- |
|
Proceeds from issuance of warrants |
53 |
— |
174 |
— |
|
Payments for settlements of warrants |
(230) |
|
|
|
|
Proceeds from investments by noncontrolling interests in subsidiaries |
790 |
437 |
279 |
24 |
|
Distributions paid to noncontrolling interests in subsidiaries |
(262) |
(227) |
(311) |
(208) |
|
Payments for buy-outs of noncontrolling interests in subsidiaries |
--- |
(6) |
(9) |
(35) |
|
Net cash provided by financing activities |
4,416 |
574 |
1,529 |
9,973 |
|
Effect of exchange rate changes on cash and cash equivalents and
restricted cash |
40 |
(23) |
8 |
334 |
|
Net increase in cash and cash equivalents and restricted cash |
198 |
312 |
2,506 |
13,118 |
|
Cash and cash equivalents and restricted cash, beginning of period |
3,767 |
3,965 |
4,277 |
6,783 |
|
Cash and cash equivalents and restricted cash, end of period |
3,965 |
4,277 |
6,783 |
19,901 |
|
Supplemental Non-Cash Investing and Financing Activities |
|
|
|
|
|
Equity issued in connection with business combination |
10 |
— |
207 |
— |
|
Acquisitions of property and equipment included in liabilities |
914 |
249 |
562 |
1,088 |
|
Estimated fair value of facilities under build-to-suit leases |
313 |
94 |
— |
— |
|
Supplemental Disclosures |
|
|
|
|
|
Cash paid during the period for interest, net of amounts capitalized |
183 |
381 |
455 |
444 |
|
Cash paid during the period for taxes, net of refunds |
66 |
35 |
54 |
115 |
|
Extracted text: Tesla, Inc. Consolidated Statements of Operations (in millions of $, except per share data) Year Ended December 31, Revenues 2017 2018 2019 2020 Automotive sales 8,535 17,632 19,952 26, 184 Automotive leasing 1,107 883 869 1,052 Total automotive revenues 9,642 18,515 20,821 27,236 Energy generation and storage Services and other 1.116 1.555 1,531 1.994 1,001 1,391 2,226 2,306 Total revenues 11,759 21,461 24,578 31,536 Cost of revenues Automotive sales 6,725 13,686 15,939 19,696 Automotive leasing 708 488 459 563 Total automotive cost of revenues 7,433 14,174 16,398 20,259 Energy generation and storage 875 1,365 1,341 1,976 Services and other 1,229 1,880 2,770 2,671 Total cost of revenues 9,537 17,419 20,509 24,906 Gross profit Operating expenses 2,222 4,042 4,069 6,630 Research and development 1,378 1,460 1,343 1,491 Selling, general and administrative Restructuring and other Total operating expenses Income (loss) from operations Interest income Interest expense 2.477 2,835 2,646 3,145 135 149 3,855 (1,633) 4,430 4.138 4,636 (388) (69) 1,994 20 24 44 30 (471) (663) (685) (748) Other (expense) income, net Income (loss) before income taxes (125) 22 45 (122) (2,209) (1,005) (665) 1,154 Provision for income taxes Net income (loss) Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries 32 58 110 292 (2,241) (1,063) (775) 862 (279) (87) (976) 87 141 Net income (loss) attributable to common stockholders (1,962) (862) 721 Less: Buy-out of noncontrolling interest Net income (loss) used in computing net income (loss) per share of common stock 8. 31 (1,962) (976) (870) 690 Net income (loss) per share of common stock attributable to common stockholders Basic (11.83) (5.72) (0.98) 0.74 Diluted (11.83) (5.72) (0.98) 0.64 Weighted average shares used in computing net income (loss) per share of common stock Basic 166 171 887 933 Diluted 166 171 887 1,083 - --T
Extracted text: Appendix (2) Tesla, Inc. Consolidated Balance Sheets (in millions of $, except per share data) December 31, December 31, December 31, December 31, 2017 2018 2019 2020 Assets Current assets Cash and cash equivlents 3,368 3,686 6,268 19.384 Restricted cash 155 193 Accounts receivable, net 515 949 1,324 1,886 Inventory 2,264 1,113 3,552 4,101 Prepaid expenses and other current assets 268 366 950 1,346 Total current assets 6,570 8.307 12,103 26.717 Operating lnase vehicles net 4,117 2.000 3,001 2,447 Solar energy systems, leased and to be leased, net 6.347 6.271 8,138 5,979 Property, plant and equipment, net 10.028 11.330 10,396 12,747 Operating lease right-of-use assets ntangible assets, net 1,218 1558 362 282 339 313 Goodwil 60 68 198 207 MyPower customer notes receivable, net of current portion 457 422 Restricted cash, net of current portion 442 398 Other assets 273 572 1,470 1.636 Total assets 28,656 29,740 34,309 52,148 Liabilities Current labilites Accounts payable 2.390 3.404 3,771 6,061 Accrued liabilities and other 1,732 2.094 3,222 3,866 Deferred revenue 1,015 630 1,163 1,458 Resale value guarantees 787 503 Customer deposts 854 793 726 752 Curent portion of long-term debt and capital leases 797 2.568 1,786 2,132 Cument potion of promissory notes issued to related parties 100 Total current liabilities 7,675 9.992 10,667 14,248 Long-term debt and capital leases, net ot cuttert portion 9,418 9.404 11,634 9.566 Delerred vere, net of cument portion 1.178 901 1,207 1,284 Resale value guarantees, net of current portion 2.309 329 Other long-tem labilities 2.443 2.710 2.601 3,330 Total liabilities Commitments and contingencies 23.023 21426 20,199 28,418 15 Redeomable noncontroling interests in sutsidiaries 398 565 843 604 Conventble senior notes 51 Equity Stockholders' equity Preferred stock; $0.001 par value, 100 shares authorized; no shares issued and outstanding Common stock; $0.001 par value; 2.000 shares auhorited 960, 905, 173 and 160 shares issued and outstanding as of December 31, 2020, 2019, 2018 and 2017, respectively Additional paidin capital 9,178 10.250 12,737 27.201 Accumulated other comprehensive loss) income 33 (8) (36) 363 Accumulated detice (4,974) (5.318) (6,083) (5,399) Total stockholdens equity 4,237 4,924 6,618 22,225 Nancontraling interests in subsidaries 998 834 B49 Total liabilities and equity 28.656 29,740 34.309 52.148