Question: In what way did Tesla's Days Sales Outstanding (DSO) change from 2019 to 2020, and how does this affect its receivables management strategy?

The company’s Days Sales Outstanding (DSO) increased to approximately 21.8 days in 2020, up from 19.6 days in 2019. This rise suggests that Tesla is taking longer to collect payments from customers, signaling a potential need for improved receivables management to optimize cash flow.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50

Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: How did Tesla's EBITDA margin fluctuate from 2019 to 2020, and what insights does this shift provide regarding its operational efficiency?

From 2019 to 2020, Tesla's EBITDA margin improved significantly from 6.92% to 13.83%, pointing to stronger operational performance and a better ability to generate earnings before interest, taxes, depreciation, and amortization.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: What impact did the change in Tesla's interest coverage ratio from 2019 to 2020 have on its ability to service debt costs?

The interest coverage ratio showed a marked improvement, rising from -0.10 in 2019 to 2.67 in 2020. This indicates that Tesla has enhanced its capacity to cover interest payments with operating income, improving its financial stability and reducing default risk.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: How did Tesla's inventory turnover ratio shift from 2019 to 2020, and what does this change reveal about its inventory handling practices?

Tesla's inventory turnover ratio showed a slight increase from 5.77 in 2019 to 6.07 in 2020. This change reflects better inventory management, indicating more efficient handling and selling of goods.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50

Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: How did Tesla's net profit margin vary from 2019 to 2020, and what does this variation suggest about its overall profitability?

A notable turnaround in profitability occurred as Tesla's net profit margin shifted from a loss of -3.15% in 2019 to a positive 2.73% in 2020. This suggests significant improvements in financial health and profitability.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: What does the shift in Tesla's quick ratio from 2019 to 2020 indicate about its capacity to cover short-term liabilities?

With a substantial rise in the quick ratio from 0.74 in 2019 to 1.61 in 2020, Tesla's ability to meet short-term obligations with its most liquid assets has improved, signaling stronger short-term financial stability.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49


Question: What insights can be drawn from the change in Tesla's accrued liabilities from 2019 to 2020 regarding its short-term financial commitments?

Increases were also seen in accrued liabilities and other short-term liabilities, which grew by 19.7%, from $3,222 million in 2019 to $3,855 million in 2020. This rise in obligations could also have an impact on liquidity.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49


Question: How does the variation in Tesla's Days Payable Outstanding (DPO) from 2019 to 2020 provide insight into its payment practices to suppliers?

Tesla's Days Payable Outstanding (DPO) rose significantly from 66.9 days in 2019 to 89.2 days in 2020. While this increase could improve short-term liquidity by delaying supplier payments, it may also strain relationships with suppliers.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50

Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: What does the change in Tesla's deferred revenue from 2019 to 2020 suggest about its future revenue recognition strategies?

Deferred revenue saw a 25.3% increase from $1,163 million in 2019 to $1,458 million in 2020, indicating more advance payments from customers. These funds will be recognized as revenue in the future.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49


Question: How did Tesla's fixed asset turnover ratio evolve from 2019 to 2020, and what does this shift indicate about the utilization of its physical assets?

The fixed asset turnover ratio showed a slight improvement, from 2.36 in 2019 to 2.47 in 2020, suggesting that Tesla is becoming more efficient in utilizing its fixed assets to generate revenue.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50

Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: What can be inferred from the change in Tesla's accounts payable from 2019 to 2020 regarding its short-term financial responsibilities?

Accounts payable grew by 60.4%, from $3,771 million in 2019 to $6,051 million in 2020, which means Tesla now has greater short-term financial obligations to suppliers, potentially affecting its liquidity.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49


Question: What does the change in Tesla's accounts receivable turnover ratio from 2019 to 2020 indicate about its approach to credit and collections?

The accounts receivable turnover ratio decreased from 18.56 in 2019 to 16.73 in 2020, signaling reduced efficiency in collecting payments from customers. This suggests the need for improvements in credit and collection practices.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50

Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: How did Tesla's cash and cash equivalents change from 2019 to 2020, and what does this shift suggest about its liquidity management?

A significant improvement in cash reserves occurred, with cash and cash equivalents soaring by 209%, from $6,268 million in 2019 to $19,384 million in 2020. This surge strengthens Tesla's liquidity, providing more flexibility to meet short-term obligations and invest in growth.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49


Question: What is indicated by the change in Tesla's cost of revenues from 2019 to 2020 in terms of its financial structure?

Despite the 21.4% rise in the cost of revenues, from $20,509 million in 2019 to $24,906 million in 2020, Tesla managed to improve its gross profit margin, indicating effective cost control and revenue growth.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: What does the shift in Tesla's Days Inventory Outstanding (DIO) from 2019 to 2020 reveal about its inventory management efficiency?

Days Inventory Outstanding (DIO) decreased from 63.3 days in 2019 to 60.1 days in 2020, reflecting improved efficiency in managing and selling inventory.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50

Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: What does the change in Tesla's long-term debt between 2019 and 2020 indicate about its financing strategy?

Tesla reduced its long-term debt from $11,634 million in 2019 to $9,556 million in 2020, focusing on lowering its debt burden to reduce interest expenses and improve financial flexibility.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49


Question: How did the alteration in Tesla's other long-term liabilities from 2019 to 2020 reflect its financial obligations?

Other long-term liabilities grew by 23.8%, from $2,691 million in 2019 to $3,330 million in 2020, indicating that Tesla has assumed additional long-term financial commitments, possibly for future expansion or operational needs.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49


Question: How did the change in Tesla's Return on Assets (ROA) from 2019 to 2020 impact its ability to generate profits from its assets?

The Return on Assets (ROA) improved from -2.26% in 2019 to 1.65% in 2020, signaling more efficient use of assets to generate profit, which reflects improved operational performance.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50

Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: What does Tesla's asset turnover ratio for 2019 and 2020 reveal about the company's efficiency in utilizing its assets to generate revenue?

The asset turnover ratio decreased from 0.72 in 2019 to 0.60 in 2020, indicating that Tesla has become less efficient in using its assets to generate revenue, suggesting the need for better asset management.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50

Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc.

Consolidated Statements of Operations

 (in millions, except per share data)

Year Ended December 31,

2021

2020

2019

Revenues

Automotive sales

$
44,125

$
24,604

$
19,358

Automotive regulatory credits

1,465

1,580

594

Automotive leasing

1,642

1,052

869

Total automotive revenues

47,232

27,236

20,821

Energy generation and storage

2,789

1,994

1,531

Services and other

3,802

2,306

2,226

Total revenues

53,823

31,536

24,578

Cost of revenues

Automotive sales

32,415

19,696

15,939

Automotive leasing

978

563

459

Total automotive cost of revenues

33,393

20,259

16,398

Energy generation and storage

2,918

1,976

1,341

Services and other

3,906

2,671

2,770

Total cost of revenues

40,217

24,906

20,509

Gross profit

13,606

6,630

4,069

Operating expenses

Research and development

2,593

1,491

1,343

Selling, general and administrative

4,517

3,145

2,646

Restructuring and other

(27
)

-

149

Total operating expenses

7,083

4,636

4,138

Income (loss) from operations

6,523

1,994

(69
)

Interest income

56

30

44

Interest expense

(371
)

(748
)

(685
)

Other income (expense), net

135

(122
)

45

Income (loss) before income taxes

6,343

1,154

(665
)

Provision for income taxes

699

292

110

Net income (loss)

5,644

862

(775
)

Net income attributable to noncontrolling interests and   redeemable noncontrolling interests in subsidiaries

125

141

87

Net income (loss) attributable to common stockholders

$
5,519

$
721

$
(862
)

Net income (loss) per share of common stock    attributable to common stockholders

Basic

$
5.60

$
0.74

$
(0.98
)

Diluted

$
4.90

$
0.64

$
(0.98
)

Weighted average shares used in computing net    income (loss) per share of common stock

Basic

986

933

887

Diluted

1,129

1,083

887

The accompanying notes are an integral part of these consolidated financial statements.
 50


Question: What does Tesla's current ratio for 2020 and 2019 suggest about its ability to meet short-term obligations?

Tesla’s current ratio improved from 1.13 in 2019 to 1.88 in 2020, showing that the company has strengthened its ability to cover short-term liabilities with its current assets, signaling better overall financial health.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)

December 31,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$
17,576

$
19,384

Short-term marketable securities

131

-

Accounts receivable, net

1,913

1,886

Inventory

5,757

4,101

Prepaid expenses and other current assets

1,723

1,346

Total current assets

27,100

26,717

Operating lease vehicles, net

4,511

3,091

Solar energy systems, net

5,765

5,979

Property, plant and equipment, net

18,884

12,747

Operating lease right-of-use assets

2,016

1,558

Digital assets, net

1,260

-

Intangible assets, net

257

313

Goodwill

200

207

Other non-current assets

2,138

1,536

Total assets

$
62,131

$
52,148

Liabilities

Current liabilities

Accounts payable

$
10,025

$
6,051

Accrued liabilities and other

5,719

3,855

Deferred revenue

1,447

1,458

Customer deposits

925

752

Current portion of debt and finance leases

1,589

2,132

Total current liabilities

19,705

14,248

Debt and finance leases, net of current portion

5,245

9,556

Deferred revenue, net of current portion

2,052

1,284

Other long-term liabilities

3,546

3,330

Total liabilities

30,548

28,418

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

568

604

Convertible senior notes (Note 11)

-

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 authorized;     1,033 and 960 shares issued and outstanding as of     December 31, 2021 and December 31, 2020, respectively

1

1

Additional paid-in capital

29,803

27,260

Accumulated other comprehensive income

54

363

Retained earnings (accumulated deficit)

331

(5,399
)

Total stockholders' equity

30,189

22,225

Noncontrolling interests in subsidiaries

826

850

Total liabilities and equity

$
62,131

$
52,148

The accompanying notes are an integral part of these consolidated financial statements.
 49