Using the four-year financial statements of Tesla 2017-2020 , evaluate and explain the profitability, solvency, liquidity, activity and market dimensions of Tesla’s financial performance highlighting the main weaknesses and strengths of Tesla. Tesla, Inc.Consolidated Statements of Cash Flows(in millions of $)Items2017201820192020Cash Flows from Operating ActivitiesNet income (loss)(2.241)(1,063)(775)B62Adjustments to reconcile net income (loss) to net cash provided byoperating activttesDepreciaion, amortization and impairment1.81,9012.1542.322Stock-baned compensation4677491,734Amontization of debt discounts and issuance costs01159188180Invertory and purchase commitments wtte-downs13285193202Loss on disposals of fiand annets106162146117Fomign curency transaction net loss igain)52(2)(48)114Loss (gain) related to SolaiCity acquisitionNon-cash interest and other operating activties13540166228Operating cash tlow related to repayment of discountedconversble senior notes(188)1.Changes in operating assets and liabities, net of effect ofbusiness combinations:Accounts receivable(25)(497)(367)(652)Inventory(179)(1,023)(429)(422)Operating inase vehicies(1,523)(215)(764)(1.072)Prepaid expenses and other curent osets(72)(82)(288)(251)Other non-current asets(15)(207)115(44)Accounts payable and accrued latiltes3881,7976462,102Deferred revenue406B01321Customer deposits170(96)(581Resale value guarantee209Other long-term labilliesNet cash provided by operating activities81(25(5)405(61)2,0982,4055943Cash Flows from Investing ActivitiesPurchases of property and equipment excuding finance leases, netot sales(3,415)(2,101)(1,327)3.157)Purchases of solar energy systema, not of sales(667)(567)(218)(105)(75)Recept of govemment grants46123Purchase of intangible assets(5)(10))Business combinations, net of cash acquiredNet cash used in investing activities(115)(18)(45)(13)(4,197)(2,337)(1,436)0.132)Cash Flows from Financing Activities18Proceeds from issuances of common stock in public offerings, net ofssuance costs40084812.260Proceeds from issuances of convertitile and other debt7,1386,17610,6609,713Repayments of convertble and other debt(3,995)(5,247)(9,161)(11.623)Hepayments of borrowings issued to related partiesCollateralized lease repaymentsProceeds from eercises of stock options and cther stock insuances(166(100511(559(38Q40259296263417Principal payments an finance lemes(103)(181)(321)(338)Debt issuance costs(63)(15)(37)(6)Purchase of convertbie note hedgesProceeds from sentement of convertitle note hadges(204(476287Proceeds from issuance of warrants53174Payments for settlementa ot warrants(230Proceeds from investmentn by noncontrolling interests in subsidiarien79043727024Distibutions paid to noncontrolling interests in subsidiaries(262)(227)(311)(208)Paymenta for buy outs at noncontroling interests in subsidiaries|Net cash provided by financing activities(6)(9)(36)4,4165741,5293.973Effect of exchange rate changs on cash and cash equivalents andrestricted cash40(23)334Net increane in cash and cash equivalents and restricted canh1983122,50613.118Cash and cash equivalerts and restricted cash, beginning of period3.7673,9656.7834,277Cash and cash equivalents and restricted cash, end of periodSupplemental Non-Cash Investing and Financing Activities3,9654,2776,78319.901Equty issued in connection with business combinationAoquisitions of property and equipment included in labiities102079142495621.088Estimated tair value of facitie under build-to-suit leases31394Supplemental DisciosuresCast paid during the period tor interest, net af amounts capitalized183381455444Cash paid duning the period tor taxes, net of rotunds663554115 Tesla, Inc.Consolidated Statements of Operations(in millions of $, except per share data)Year Ended December 31,Revenues2017201820192020Automotive sales8,53517,63219,95226, 184Automotive leasing1,1078838691,052Total automotive revenues9,64218,51520,82127,236Energy generation and storageServices and other1.1161.5551,5311.9941,0011,3912,2262,306Total revenues11,75921,46124,57831,536Cost of revenuesAutomotive sales6,72513,68615,93919,696Automotive leasing708488459563Total automotive cost of revenues7,43314,17416,39820,259Energy generation and storage8751,3651,3411,976Services and other1,2291,8802,7702,671Total cost of revenues9,53717,41920,50924,906Gross profitOperating expenses2,2224,0424,0696,630Research and development1,3781,4601,3431,491Selling, general and administrativeRestructuring and otherTotal operating expensesIncome (loss) from operationsInterest incomeInterest expense2.4772,8352,6463,1451351493,855(1,633)4,4304.1384,636(388)(69)1,99420244430(471)(663)(685)(748)Other (expense) income, netIncome (loss) before income taxes(125)2245(122)(2,209)(1,005)(665)1,154Provision for income taxesNet income (loss)Net income (loss) attributable to noncontrolling interests andredeemable noncontrolling interests in subsidiaries3258110292(2,241)(1,063)(775)862(279)(87)(976)87141Net income (loss) attributable to common stockholders(1,962)(862)721Less: Buy-out of noncontrolling interestNet income (loss) used in computing netincome (loss) per share of common stock8.31(1,962)(976)(870)690Net income (loss) per share of common stock attributableto common stockholdersBasic(11.83)(5.72)(0.98)0.74Diluted(11.83)(5.72)(0.98)0.64Weighted average shares used in computing netincome (loss) per share of common stockBasic166171887933Diluted1661718871,083- --T Appendix (2)Tesla, Inc.Consolidated Balance Sheets(in millions of $, except per share data)December 31, December 31, December 31, December 31,2017201820192020AssetsCurrent assetsCash and cash equivlents3,3683,6866,26819.384Restricted cash155193Accounts receivable, net5159491,3241,886Inventory2,2641,1133,5524,101Prepaid expenses and other current assets2683669501,346Total current assets6,5708.30712,10326.717Operating lnase vehicles net4,1172.0003,0012,447Solar energy systems, leased and to be leased, net6.3476.2718,1385,979Property, plant and equipment, net10.02811.33010,39612,747Operating lease right-of-use assetsntangible assets, net1,2181558362282339313Goodwil6068198207MyPower customer notes receivable, net of current portion457422Restricted cash, net of current portion442398Other assets2735721,4701.636Total assets28,65629,74034,30952,148LiabilitiesCurrent labilitesAccounts payable2.3903.4043,7716,061Accrued liabilities and other1,7322.0943,2223,866Deferred revenue1,0156301,1631,458Resale value guarantees787503Customer deposts854793726752Curent portion of long-term debt and capital leases7972.5681,7862,132Cument potion of promissory notes issued to related parties100Total current liabilities7,6759.99210,66714,248Long-term debt and capital leases, net ot cuttert portion9,4189.40411,6349.566Delerred vere, net of cument portion1.1789011,2071,284Resale value guarantees, net of current portion2.309329Other long-tem labilities2.4432.7102.6013,330Total liabilitiesCommitments and contingencies23.0232142620,19928,41815Redeomable noncontroling interests in sutsidiaries398565843604Conventble senior notes51EquityStockholders' equityPreferred stock; $0.001 par value, 100 shares authorized;no shares issued and outstandingCommon stock; $0.001 par value; 2.000 shares auhorited960, 905, 173 and 160 shares issued and outstanding as ofDecember 31, 2020, 2019, 2018 and 2017, respectivelyAdditional paidin capital9,17810.25012,73727.201Accumulated other comprehensive loss) income33(8)(36)363Accumulated detice(4,974)(5.318)(6,083)(5,399)Total stockholdens equity4,2374,9246,61822,225Nancontraling interests in subsidaries998834B49Total liabilities and equity28.65629,74034.30952.148

Name: Using the four-year financial statements of Tesla 2017-2020 , evaluate
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Description: Using the four-year financial statements of Tesla 2017-2020 , evaluate and explain the profitability, solvency, liquidity, activity and market dimensions of Tesla’s financial performance highlighting the main weaknesses and strengths of Tesla. Tesla,

Weaknesses Liabilities of a Company Increassed year by year . Investing operation of cash flow…

Business

Accounting

Net income loss Aduntments to reconcie net income os)to net cash provided by perating activites 2241) (1.063) (775) Depreciation, amortization and impairment 1.83 1901 2.154 2.322 Stock-baned compensation 467 749 1,734 Amortization of debt discounts and issuance costs 159 188 180 Inventory and purchame commiements wite-doens 132 193 202 Loss on dinposals of and aet 106 162 146 117 Foregn cumency transaction net loss igain) Loss (gaini related to SelarCity acquisition 52 (2) (48) 114 Non-cash interest and other operating actvtes 135 49 186 228 Operating cash flow related to repayment of discounted convenble senior notes (18) Changes in operating ansets and labtien, net of effect of business combinations

Net income loss Aduntments to reconcie net income os)to net cash provided by perating activites 2241) (1.063) (775) Depreciation, amortization and impairment 1.83 1901 2.154 2.322 Stock-baned compensation 467 749 1,734 Amortization of debt discounts and issuance costs 159 188 180 Inventory and purchame commiements wite-doens 132 193 202 Loss on dinposals of and aet 106 162 146 117 Foregn cumency transaction net loss igain) Loss (gaini related to SelarCity acquisition 52 (2) (48) 114 Non-cash interest and other operating actvtes 135 49 186 228 Operating cash flow related to repayment of discounted convenble senior notes (18) Changes in operating ansets and labtien, net of effect of business combinations

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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