Tesla's Income Statement, Balance Sheet, and Cash Flow Statements

Tesla's Income Statement, Balance Sheet, and Cash Flow Statements Executive summary
Tesla Company is an American company that sells and manufactures electric vehicles in the United States, Europe, Canada, China, Japan, and Hong Kong. The popularity of electric vehicles has rapidly grown over the years as consumers shift towards environment-friendly automotive. Despite being a young business, Tesla has swiftly established a reputation for producing cutting-edge electric vehicles. Tesla produces some of the most technologically advanced vehicles available today, and the firm is continually looking for new and better ways to make its vehicles more environmentally friendly and efficient.
Since 2021, the company has seen immense growth in sales and continues to increase following strong demand. In 2021 the company reported a revenue of $53.828 billion. Consequently, the return on equity grew to 20 percent while the net profit margin was attained at 10 percent. The company’s financial statement shows good liquidity and low leverage, giving investors’ confidence by managing business risk well. The company’s success can be sustained in the future following the sound hedging measures in managing its manufacturing subsidiaries. Currency analysis should help the company profit more by cushioning the company from forex volatility. Telsa is in a better position to compete against its competitors owing to its unmatched innovation and quality products.
Content
Case Study – Stage 1 Tesla
This project will include financial reports, financial ratios, and the financial and economic strategies used by Tesla. These components are split into the following sections:
Financial Reports
The financial reports of Tesla include the three financial statements: income statement, balance sheet, and cash flow statements.
Income Statement
Period Ending:

2021

2020

2019

2018


31-Dec

31-Dec

31-Dec

31-Dec

Total Revenue

53823

31536

24578

21461.27

Revenue

53823

31536

24578

21461.27

Other Revenue, Total

-

-

-

-

Cost of Revenue, Total

40217

24906

20509

17419.25

Gross Profit

13606

6630

4069

4042.02

Total Operating Expenses

47300

29542

24647

21849.34

Selling/General/Admin. Expenses, Total

4517

3145

2646

2834.49

Research & Development

2593

1491

1343

1460.37

Depreciation / Amortization

-

-

-

-

Interest Expense (Income) - Net Operating

-128

-

-

-

Unusual Expense (Income)

101

-

149

135.23

Other Operating Expenses, Total

-

-

-

-

Operating Income

6523

1994

-69

-388.07

Interest Income (Expense), Net Non-Operating

-218

-832

-593

-637.04

Gain (Loss) on Sale of Assets

-

-

-

-

Other, Net

38

-8

-3

20.37

Net Income Before Taxes

6343

1154

-665

-1004.75

Provision for Income Taxes

699

292

110

57.84

Net Income After Taxes

5644

862

-775

-1062.58

Minority Interest

-120

-172

-95

86.49

Equity In Affiliates

-

-

-

-

U.S GAAP Adjustment

-

-

-

-

Net Income Before Extraordinary Items

5524

690

-870

-976.09

Total Extraordinary Items

-

-

-

-

Net Income

5524

690

-870

-976.09

Total Adjustments to Net Income

-

-

-

-

Income Available to Common Excluding Extraordinary Items

5524

690

-870

-976.09

Dilution Adjustment

9

-

-

-

Diluted Net Income

5533

690

-870

-976.09

Diluted Weighted Average Shares

1129

1083

887

852.62

Diluted EPS Excluding Extraordinary Items

4.9

0.64

-0.98

-1.14

DPS - Common Stock Primary Issue

-

-

-

-

Diluted Normalized EPS

4.98

0.64

-0.87

-1.04

(MarketWatch, 2022)
Balance Sheet
(MarketWatch, 2022)
Cash Flow Statement
Period Ending:

2021

2020

2019

2018


31-Dec

31-Dec

31-Dec

31-Dec

Net Income/Starting Line

5644

862

-775

-1062.58

Cash From Operating Activities

11497

5943

2405

2097.8

Depreciation/Depletion

2911

2322

2154

1901.05

Amortization

-

-

-

-

Deferred Taxes

-

-

-

-

Non-Cash Items

2424

2575

1375

1201.38

Cash Receipts

-

-

-

-

Cash Payments

-

-

-

-

Cash Taxes Paid

561

115

54

35.41

Cash Interest Paid

266

444

455

380.84

Changes in Working Capital

518

184

-349

57.95

Cash From Investing Activities

-7868

-3132

-1436

-2337.43

Capital Expenditures

-8014

-3242

-1437

-2319.52

Other Investing Cash Flow Items, Total

146

110

1

-17.91

Cash From Financing Activities

-5203

9973

1529

573.75

Financing Cash Flow Items

-178

-225

-554

188.9

Total Cash Dividends Paid

-

-

-

-

Issuance (Retirement) of Stock, Net

707

12686

1285

295.71

Issuance (Retirement) of Debt, Net

-5732

-2488

798

89.14

Foreign Exchange Effects

-183

334

8

-22.7

Net Change in Cash

-1757

13118

2506

311.43

Beginning Cash Balance

-

-

3762

3374.19

Ending Cash Balance

-

-

6268

3685.62

Free Cash Flow

-

-

968

-221.72

(MarketWatch, 2022)
Financial Ratios
The financial ratios of Tesla will include market value and short-term solvency ratios (price-earnings ratio, current ratio, and quick ratio), profitability and long-term solvency ratios (return on equity ratio, profit margin ratio, cash coverage ratio, and debt-to-equity ratio), along with asset management ratios (inventory ...