Tesla Motors

  • Uncategorized

TESLA MOTORS 27

TeslaMotors

TeslaMotors Inc.

FinancialStatements

TeslaMotors, Inc.

ConsolidatedBalance Sheets

(inthousands)

&nbsp

&nbsp

&nbsp

December 31,

&nbsp

&nbsp

December 31,

&nbsp

&nbsp

&nbsp

2015

&nbsp

&nbsp

2014

&nbsp

Assets

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Current assets

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Cash and cash equivalents

&nbsp

$

1,196,908

&nbsp

&nbsp

$

1,905,713

&nbsp

Restricted cash and marketable securities

&nbsp

&nbsp

22,628

&nbsp

&nbsp

&nbsp

17,947

&nbsp

Accounts receivable

&nbsp

&nbsp

168,965

&nbsp

&nbsp

&nbsp

226,604

&nbsp

Inventory

&nbsp

&nbsp

1,277,838

&nbsp

&nbsp

&nbsp

953,675

&nbsp

Prepaid expenses and other current assets

&nbsp

&nbsp

125,229

&nbsp

&nbsp

&nbsp

76,134

&nbsp

Total current assets

&nbsp

&nbsp

2,791,568

&nbsp

&nbsp

&nbsp

3,180,073

&nbsp

Operating lease vehicles, net

&nbsp

&nbsp

1,791,403

&nbsp

&nbsp

&nbsp

766,744

&nbsp

Property, plant and equipment, net

&nbsp

&nbsp

3,403,334

&nbsp

&nbsp

&nbsp

1,829,267

&nbsp

Restricted cash

&nbsp

&nbsp

31,522

&nbsp

&nbsp

&nbsp

11,374

&nbsp

Other assets

&nbsp

&nbsp

74,633

&nbsp

&nbsp

&nbsp

43,209

&nbsp

Total assets

&nbsp

$

8,092,460

&nbsp

&nbsp

$

5,830,667

&nbsp

Liabilities and Stockholders` Equity

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Current liabilities

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Accounts payable

&nbsp

$

916,148

&nbsp

&nbsp

$

777,946

&nbsp

Accrued liabilities

&nbsp

&nbsp

422,798

&nbsp

&nbsp

&nbsp

268,883

&nbsp

Deferred revenue

&nbsp

&nbsp

423,961

&nbsp

&nbsp

&nbsp

191,651

&nbsp

Resale value guarantees

&nbsp

&nbsp

136,831

&nbsp

&nbsp

&nbsp

&nbsp

Customer deposits

&nbsp

&nbsp

283,370

&nbsp

&nbsp

&nbsp

257,587

&nbsp

Long-term debt and capital leases

&nbsp

&nbsp

633,166

&nbsp

&nbsp

&nbsp

611,099

&nbsp

Total current liabilities

&nbsp

&nbsp

2,816,274

&nbsp

&nbsp

&nbsp

2,107,166

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Deferred revenue

&nbsp

&nbsp

446,105

&nbsp

&nbsp

&nbsp

292,271

&nbsp

Long-term debt and capital leases

&nbsp

&nbsp

2,040,375

&nbsp

&nbsp

&nbsp

1,818,785

&nbsp

Resale value guarantee

&nbsp

&nbsp

1,293,741

&nbsp

&nbsp

&nbsp

487,879

&nbsp

Other long-term liabilities

&nbsp

&nbsp

364,976

&nbsp

&nbsp

&nbsp

154,660

&nbsp

Total liabilities

&nbsp

&nbsp

6,961,471

&nbsp

&nbsp

&nbsp

4,860,761

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Convertible senior notes (Notes 8)

&nbsp

&nbsp

42,045

&nbsp

&nbsp

&nbsp

58,196

&nbsp

Stockholders` equity:

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Preferred stock $0.001 par value 100,000 shares authorized no shares

&nbsp&nbsp issued and outstanding

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Common stock $0.001 par value 2,000,000 shares authorized as of

&nbsp&nbsp December 31, 2015 and 2014, respectively&nbsp&nbsp131,425 and 125,688

&nbsp&nbsp shares issued and outstanding as of December 31, 2015 and 2014, respectively

&nbsp

&nbsp

131

&nbsp

&nbsp

&nbsp

126

&nbsp

Additional paid-in capital

&nbsp

&nbsp

3,414,692

&nbsp

&nbsp

&nbsp

2,345,266

&nbsp

Accumulated other comprehensive loss

&nbsp

&nbsp

(3,556

)

&nbsp

&nbsp

(22

)

Accumulated deficit

&nbsp

&nbsp

(2,322,323

)

&nbsp

&nbsp

(1,433,660

)

Total stockholders` equity

&nbsp

&nbsp

1,088,944

&nbsp

&nbsp

&nbsp

911,710

&nbsp

Total liabilities and stockholders` equity

&nbsp

$

8,092,460

&nbsp

&nbsp

$

5,830,667

&nbsp

TeslaMotors, Inc.&nbsp

ConsolidatedStatements of Operations

(inthousands, except per share data)

&nbsp

&nbsp

&nbsp

Year Ended December 31,

&nbsp

&nbsp

&nbsp

2015

&nbsp

&nbsp

2014

&nbsp

&nbsp

2013

&nbsp

Revenues

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Automotive

&nbsp

$

3,740,973

&nbsp

&nbsp

$

3,007,012

&nbsp

&nbsp

$

1,921,877

&nbsp

Services and other

&nbsp

&nbsp

305,052

&nbsp

&nbsp

&nbsp

191,344

&nbsp

&nbsp

&nbsp

91,619

&nbsp

Total revenues

&nbsp

&nbsp

4,046,025

&nbsp

&nbsp

&nbsp

3,198,356

&nbsp

&nbsp

&nbsp

2,013,496

&nbsp

Cost of revenues

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Automotive

&nbsp

&nbsp

2,823,302

&nbsp

&nbsp

&nbsp

2,145,749

&nbsp

&nbsp

&nbsp

1,483,321

&nbsp

Services and other

&nbsp

&nbsp

299,220

&nbsp

&nbsp

&nbsp

170,936

&nbsp

&nbsp

&nbsp

73,913

&nbsp

Total cost of revenues

&nbsp

&nbsp

3,122,522

&nbsp

&nbsp

&nbsp

2,316,685

&nbsp

&nbsp

&nbsp

1,557,234

&nbsp

Gross profit

&nbsp

&nbsp

923,503

&nbsp

&nbsp

&nbsp

881,671

&nbsp

&nbsp

&nbsp

456,262

&nbsp

Operating expenses

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Research and development

&nbsp

&nbsp

717,900

&nbsp

&nbsp

&nbsp

464,700

&nbsp

&nbsp

&nbsp

231,976

&nbsp

Selling, general and administrative

&nbsp

&nbsp

922,232

&nbsp

&nbsp

&nbsp

603,660

&nbsp

&nbsp

&nbsp

285,569

&nbsp

Total operating expenses

&nbsp

&nbsp

1,640,132

&nbsp

&nbsp

&nbsp

1,068,360

&nbsp

&nbsp

&nbsp

517,545

&nbsp

Loss from operations

&nbsp

&nbsp

(716,629

)

&nbsp

&nbsp

(186,689

)

&nbsp

&nbsp

(61,283

)

Interest income

&nbsp

&nbsp

1,508

&nbsp

&nbsp

&nbsp

1,126

&nbsp

&nbsp

&nbsp

189

&nbsp

Interest expense

&nbsp

&nbsp

(118,851

)

&nbsp

&nbsp

(100,886

)

&nbsp

&nbsp

(32,934

)

Other income (expense), net

&nbsp

&nbsp

(41,652

)

&nbsp

&nbsp

1,813

&nbsp

&nbsp

&nbsp

22,602

&nbsp

Loss before income taxes

&nbsp

&nbsp

(875,624

)

&nbsp

&nbsp

(284,636

)

&nbsp

&nbsp

(71,426

)

Provision for income taxes

&nbsp

&nbsp

13,039

&nbsp

&nbsp

&nbsp

9,404

&nbsp

&nbsp

&nbsp

2,588

&nbsp

Net loss

&nbsp

$

(888,663

)

&nbsp

$

(294,040

)

&nbsp

$

(74,014

)

Net loss per share of common stock, basic and diluted

&nbsp

$

(6.93

)

&nbsp

$

(2.36

)

&nbsp

$

(0.62

)

Weighted average shares used in computing net loss per share of

&nbsp&nbsp common stock, basic and diluted

&nbsp

&nbsp

128,202

&nbsp

&nbsp

&nbsp

124,539

&nbsp

&nbsp

&nbsp

119,421

&nbsp

TeslaMotors, Inc.

ConsolidatedStatements of Comprehensive Loss

(inthousands)&nbsp

&nbsp

&nbsp

Year Ended December 31,

&nbsp

&nbsp

&nbsp

2015

&nbsp

&nbsp

2014

&nbsp

&nbsp

2013

&nbsp

Net loss

&nbsp

$

(888,663

)

&nbsp

$

(294,040

)

&nbsp

$

(74,014

)

Other comprehensive income (loss), net of tax:

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Unrealized gain (loss) on derivatives and short-term marketable securities

&nbsp

&nbsp

7,465

&nbsp

&nbsp

&nbsp

(22

)

&nbsp

&nbsp

&nbsp

Foreign currency translation adjustment

&nbsp

&nbsp

(10,999

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Other comprehensive income (loss)

&nbsp

&nbsp

(3,534

)

&nbsp

&nbsp

(22

)

&nbsp

&nbsp

&nbsp

Comprehensive loss

&nbsp

$

(892,197

)

&nbsp

$

(294,062

)

&nbsp

$

(74,014

)

TeslaMotors, Inc.

ConsolidatedStatements of Stockholders’ Equity

(inthousands, except per share data)&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Accumulated

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Common Stock

&nbsp

&nbsp

Additional

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Other

&nbsp

&nbsp

Total

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Paid-In

&nbsp

&nbsp

Accumulated

&nbsp

&nbsp

Comprehensive

&nbsp

&nbsp

Stockholders`

&nbsp

&nbsp

&nbsp

Shares

&nbsp

&nbsp

Amount

&nbsp

&nbsp

Capital

&nbsp

&nbsp

Deficit

&nbsp

&nbsp

Loss

&nbsp

&nbsp

Equity

&nbsp

Balance as of December 31, 2012

&nbsp

&nbsp

114,214

&nbsp

&nbsp

$

115

&nbsp

&nbsp

$

1,190,191

&nbsp

&nbsp

$

(1,065,606

)

&nbsp

&nbsp

&nbsp

&nbsp

$

124,700

&nbsp

Issuance of common stock in May 2013 public offering at

&nbsp&nbsp $92.20 per share, net of issuance costs of $6,367

&nbsp

&nbsp

3,903

&nbsp

&nbsp

&nbsp

3

&nbsp

&nbsp

&nbsp

353,629

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

353,632

&nbsp

Issuance of common stock in May 2013 concurrent private

&nbsp&nbsp placements at $92.20 per share

&nbsp

&nbsp

596

&nbsp

&nbsp

&nbsp

1

&nbsp

&nbsp

&nbsp

55,000

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

55,001

&nbsp

Conversion feature of convertible senior notes due 2018

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

82,842

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

82,842

&nbsp

Purchase of bond hedges

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(177,540

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(177,540

)

Sales of warrant

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

120,318

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

120,318

&nbsp

Issuance of common stock upon exercise of stock options

&nbsp

&nbsp

3,853

&nbsp

&nbsp

&nbsp

3

&nbsp

&nbsp

&nbsp

82,570

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

82,573

&nbsp

Issuance of common stock upon release of restricted stock

&nbsp&nbsp units, net of shares withheld for employee taxes

&nbsp

&nbsp

6

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(1,116

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(1,116

)

Issuance of common stock under employee stock purchase

&nbsp&nbsp plan

&nbsp

&nbsp

519

&nbsp

&nbsp

&nbsp

1

&nbsp

&nbsp

&nbsp

13,848

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

13,849

&nbsp

Stock-based compensation

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

86,875

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

86,875

&nbsp

Net loss

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(74,014

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(74,014

)

Balance as of December 31, 2013

&nbsp

&nbsp

123,091

&nbsp

&nbsp

&nbsp

123

&nbsp

&nbsp

&nbsp

1,806,617

&nbsp

&nbsp

&nbsp

(1,139,620

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

667,120

&nbsp

Conversion feature of convertible senior notes due

&nbsp&nbsp 2019 and 2021

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

548,603

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

548,603

&nbsp

Purchase of bond hedges

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(603,428

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(603,428

)

Sales of warrant

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

389,160

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

389,160

&nbsp

Reclass from equity to mezzanine equity

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(58,199

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(58,199

)

Issuance of common stock upon exercise of stock options

&nbsp

&nbsp

2,267

&nbsp

&nbsp

&nbsp

2

&nbsp

&nbsp

&nbsp

72,053

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

72,055

&nbsp

Issuance of common stock upon release of restricted stock

&nbsp&nbsp units, net of shares withheld for employee taxes

&nbsp

&nbsp

166

&nbsp

&nbsp

&nbsp

1

&nbsp

&nbsp

&nbsp

(190

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(189

)

Issuance of common stock under employee stock purchase

&nbsp&nbsp plan

&nbsp

&nbsp

164

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

28,571

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

28,571

&nbsp

Stock-based compensation

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

162,079

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

162,079

&nbsp

Comprehensive loss:

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Net loss

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(294,040

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(294,040

)

Other comprehensive loss

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(22

)

&nbsp

&nbsp

(22

)

Balance as of December 31, 2014

&nbsp

&nbsp

125,688

&nbsp

&nbsp

$

126

&nbsp

&nbsp

$

2,345,266

&nbsp

&nbsp

$

(1,433,660

)

&nbsp

$

(22

)

&nbsp

$

911,710

&nbsp

Conversion feature of convertible senior notes due

&nbsp&nbsp 2018

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

16,150

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

16,150

&nbsp

Conversion feature of convertible senior notes due

&nbsp&nbsp 2019 and 2021

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Issuance of common stock in August 2015 secondary

&nbsp&nbsp public offering at $242 per share, net of issuance costs of

&nbsp&nbsp $11,122

&nbsp

&nbsp

3,099

&nbsp

&nbsp

&nbsp

3

&nbsp

&nbsp

&nbsp

738,405

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

738,408

&nbsp

Issuance of common stock upon exercise of stock options

&nbsp

&nbsp

2,012

&nbsp

&nbsp

&nbsp

2

&nbsp

&nbsp

&nbsp

68,999

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

69,001

&nbsp

Issuance of common stock upon release of restricted stock

&nbsp&nbsp units, net of shares withheld for employee taxes

&nbsp

&nbsp

405

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(4

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(4

)

Issuance of common stock under employee stock purchase

&nbsp&nbsp plan

&nbsp

&nbsp

221

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

37,538

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

37,538

&nbsp

Stock-based compensation

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

208,338

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

208,338

&nbsp

Comprehensive loss:

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Net loss

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(888,663

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(888,663

)

Other comprehensive loss

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(3,534

)

&nbsp

&nbsp

(3,534

)

Balance as of December 31, 2015

&nbsp

&nbsp

131,425

&nbsp

&nbsp

$

131

&nbsp

&nbsp

$

3,414,692

&nbsp

&nbsp

$

(2,322,323

)

&nbsp

$

(3,556

)

&nbsp

$

1,088,944

&nbsp

TeslaMotors, Inc.&nbsp

ConsolidatedStatements of Cash Flows

(inthousands)

&nbsp

&nbsp

Year Ended December 31,

&nbsp

&nbsp

&nbsp

2015

&nbsp

&nbsp

2014

&nbsp

&nbsp

2013

&nbsp

Cash Flows From Operating Activities

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Net loss

&nbsp

$

(888,663

)

&nbsp

$

(294,040

)

&nbsp

$

(74,014

)

Adjustments to reconcile net loss to net cash provided by (used in)

&nbsp&nbsp operating activities:

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Depreciation and amortization

&nbsp

&nbsp

422,590

&nbsp

&nbsp

&nbsp

231,931

&nbsp

&nbsp

&nbsp

106,083

&nbsp

Stock-based compensation

&nbsp

&nbsp

197,999

&nbsp

&nbsp

&nbsp

156,496

&nbsp

&nbsp

&nbsp

80,737

&nbsp

Amortization of discount on convertible debt

&nbsp

&nbsp

72,063

&nbsp

&nbsp

&nbsp

69,734

&nbsp

&nbsp

&nbsp

9,143

&nbsp

Inventory write-downs

&nbsp

&nbsp

44,940

&nbsp

&nbsp

&nbsp

15,609

&nbsp

&nbsp

&nbsp

8,918

&nbsp

Amortization of Department of Energy (DOE) loan origination costs

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

5,558

&nbsp

Change in fair value of DOE warrant liability

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(10,692

)

Fixed asset disposal

&nbsp

&nbsp

37,723

&nbsp

&nbsp

&nbsp

14,178

&nbsp

&nbsp

&nbsp

1,796

&nbsp

Other non-cash operating activities

&nbsp

&nbsp

26,373

&nbsp

&nbsp

&nbsp

7,471

&nbsp

&nbsp

&nbsp

1,815

&nbsp

Foreign currency transaction (gain) loss

&nbsp

&nbsp

55,765

&nbsp

&nbsp

&nbsp

(1,891

)

&nbsp

&nbsp

(13,498

)

Changes in operating assets and liabilities

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Accounts receivable

&nbsp

&nbsp

46,267

&nbsp

&nbsp

&nbsp

(183,658

)

&nbsp

&nbsp

(21,705

)

Inventories and operating lease vehicles

&nbsp

&nbsp

(1,573,860

)

&nbsp

&nbsp

(1,050,264

)

&nbsp

&nbsp

(460,561

)

Prepaid expenses and other current assets

&nbsp

&nbsp

(29,595

)

&nbsp

&nbsp

(60,637

)

&nbsp

&nbsp

(17,533

)

Other assets

&nbsp

&nbsp

(24,362

)

&nbsp

&nbsp

(4,493

)

&nbsp

&nbsp

(434

)

Accounts payable and accrued liabilities

&nbsp

&nbsp

263,345

&nbsp

&nbsp

&nbsp

414,856

&nbsp

&nbsp

&nbsp

87,413

&nbsp

Deferred revenue

&nbsp

&nbsp

322,203

&nbsp

&nbsp

&nbsp

209,681

&nbsp

&nbsp

&nbsp

268,098

&nbsp

Customer deposits

&nbsp

&nbsp

36,721

&nbsp

&nbsp

&nbsp

106,230

&nbsp

&nbsp

&nbsp

24,354

&nbsp

Resale value guarantee

&nbsp

&nbsp

442,295

&nbsp

&nbsp

&nbsp

249,492

&nbsp

&nbsp

&nbsp

236,299

&nbsp

Other long-term liabilities

&nbsp

&nbsp

23,697

&nbsp

&nbsp

&nbsp

61,968

&nbsp

&nbsp

&nbsp

33,027

&nbsp

Net cash provided by (used in) operating activities

&nbsp

&nbsp

(524,499

)

&nbsp

&nbsp

(57,337

)

&nbsp

&nbsp

264,804

&nbsp

Cash Flows From Investing Activities

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Purchases of property and equipment excluding capital leases

&nbsp

&nbsp

(1,634,850

)

&nbsp

&nbsp

(969,885

)

&nbsp

&nbsp

(264,224

)

Withdrawals out of our dedicated DOE account, net

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

14,752

&nbsp

(Increase) decrease in other restricted cash

&nbsp

&nbsp

(26,441

)

&nbsp

&nbsp

(3,849

)

&nbsp

&nbsp

55

&nbsp

Purchases of short-term marketable securities

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(205,841

)

&nbsp

&nbsp

&nbsp

Maturities of short-term marketable securities

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

189,131

&nbsp

&nbsp

&nbsp

&nbsp

Business acquisition

&nbsp

&nbsp

(12,260

)

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Net cash used in investing activities

&nbsp

&nbsp

(1,673,551

)

&nbsp

&nbsp

(990,444

)

&nbsp

&nbsp

(249,417

)

Cash Flows From Financing Activities

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Proceeds from issuance of convertible and other debt

&nbsp

&nbsp

318,972

&nbsp

&nbsp

&nbsp

2,300,000

&nbsp

&nbsp

&nbsp

660,000

&nbsp

Proceeds from issuance of common stock in public offering

&nbsp

&nbsp

730,000

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

360,000

&nbsp

Proceeds from issuance of warrants

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

389,160

&nbsp

&nbsp

&nbsp

120,318

&nbsp

Proceeds from exercise of stock options and other stock issuances

&nbsp

&nbsp

106,611

&nbsp

&nbsp

&nbsp

100,455

&nbsp

&nbsp

&nbsp

95,307

&nbsp

Proceeds from issuance of common stock in private placement

&nbsp

&nbsp

20,000

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

55,000

&nbsp

Principal payments on DOE loans

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(452,337

)

Purchase of convertible note hedges

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

(603,428

)

&nbsp

&nbsp

(177,540

)

Common stock and convertible debt issuance costs

&nbsp

&nbsp

(17,025

)

&nbsp

&nbsp

(35,149

)

&nbsp

&nbsp

(16,901

)

Principal payments on capital leases and other debt

&nbsp

&nbsp

(203,780

)

&nbsp

&nbsp

(11,179

)

&nbsp

&nbsp

(8,425

)

Collateralized lease borrowing

&nbsp

&nbsp

568,745

&nbsp

&nbsp

&nbsp

3,271

&nbsp

&nbsp

&nbsp

&nbsp

Net cash provided by financing activities

&nbsp

&nbsp

1,523,523

&nbsp

&nbsp

&nbsp

2,143,130

&nbsp

&nbsp

&nbsp

635,422

&nbsp

Effect of exchange rate changes on cash and cash equivalents

&nbsp

&nbsp

(34,278

)

&nbsp

&nbsp

(35,525

)

&nbsp

&nbsp

(6,810

)

Net increase (decrease) in cash and cash equivalents

&nbsp

&nbsp

(708,805

)

&nbsp

&nbsp

1,059,824

&nbsp

&nbsp

&nbsp

643,999

&nbsp

Cash and cash equivalents at beginning of period

&nbsp

&nbsp

1,905,713

&nbsp

&nbsp

&nbsp

845,889

&nbsp

&nbsp

&nbsp

201,890

&nbsp

Cash and cash equivalents at end of period

&nbsp

$

1,196,908

&nbsp

&nbsp

$

1,905,713

&nbsp

&nbsp

$

845,889

&nbsp

Supplemental Disclosures

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Interest paid

&nbsp

$

32,060

&nbsp

&nbsp

$

20,539

&nbsp

&nbsp

$

9,041

&nbsp

Income taxes paid

&nbsp

&nbsp

9,461

&nbsp

&nbsp

&nbsp

3,120

&nbsp

&nbsp

&nbsp

257

&nbsp

Supplemental noncash investing activities

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Acquisition of property and equipment included in accounts payable

&nbsp&nbsp and accrued liabilities

&nbsp

&nbsp

267,334

&nbsp

&nbsp

&nbsp

254,393

&nbsp

&nbsp

&nbsp

38,789

&nbsp

Estimated fair market value of facilities under build-to-suit lease

&nbsp

&nbsp

174,749

&nbsp

&nbsp

&nbsp

50,076

&nbsp

&nbsp

&nbsp

&nbsp

Category:Revenue and Net Income

  1. What was the corporation`s net sales, cost of goods sold, and gross profit?

Fromthe above financial statements, the corporation’s net sales for thefinancial year ending 31stDecember 2015 stood at USD 4,045,845,000. This is the total ofautomotive sales and services and other products, i.e. USD3,740,973,000 + USD 305,052,000

Costof goods sold (COGS) will be arrived at by summing the cost of goodssold per every revenue line automotive, and services and other.

Thus,COGS= USD 2,823,302,000 + USD 299,220,000

=USD 3,122,522,000

Thegross profit stood at USD 923,503,000

Category:Comprehensive Income

  1. What is the account and amount of the top line item on the Statement (or Consolidated Statement) of Comprehensive Income?

Thetop line item is automotive. The revenue line fetched USD3,740,973,000 in revenues for the financial year ending (FYE) 31stDecember 2015.

Category: Analysis

1. Calculate the following ratios for the most recent year and commenton the results of your ratio analysis.

a.Gross profit margin

GrossProfit Margin = Gross profit ÷ Revenues

=923,503,000÷ 4,045,845,000

=0.2283

Grossprofit margin stands at 22.83%. This means that 22.83% of revenues isleft over after accounting for the cost of goods sold. This being avehicle manufacturer, the ratio depicts the company is financiallyhealthy.

b.Net profit margin

NetProfit Margin = Net Profit ÷ Total Revenues

=(886,663,000) ÷ 4,045,845,000

=-0.2192

Netprofit margin for the corporation for FYE 2015 is -21.92%. Thisimplies that no percentage of revenues made it all the way to thebottom line the company made a loss instead, hence the negative netprofit margin.

c.Times interest earned

TimesInterest Earned (TIE) = EBITDA ÷ Interest Expense

Fromthe consolidated statement of operations above, TIE = (715,121,000) ÷118,851,000

=-6.017

Thismeans that the corporation is incapable of covering its interestcharges from their earnings before tax and unusual items. This can beattributed to the operating loss the company made.

Respondto one or more question(s) from each of the three categories below.

Category:Stock Market

1. What was the closing price of your corporation`s stock on the firstday of class and the day before you are posting this response?

Closingstock price on day before submission of paper: $ 196.51

Category:Assets and Liabilities

1. What were total current assets?

Totalcurrent assets for the year ending December 31st2015 was USD 2,791,568,000

Category:Analysis

1. Calculate the following ratios for the most recent year and commenton the results of your ratio analysis.

a.Current ratio

Currentratio =

=2,791,568,0002,816,274,000

=0.99

Thecurrent ratio of 0.99 implies the company is able to meet 99% oftheir current obligations. This is a healthy position to be in. Theyhave managed to keep their current obligations in check.

b.Quick ratio

Quickratio is calculated by dividing current assets (less stock) bycurrent liabilities.

QuickRatio = (Current assets-stock) Current liabilities

=(2,791,568,000– 1,277,838,000) ÷ 2,816,274,000

=0.54

Thisimplies that Inc. can meet up to 54% of their short termobligations in case their stock is not sold on time (Needles &ampPowers, 2013). This quick ratio is not that appealing however,considering the line of business of the company, where stock formsabout 46% of their current assets, they are not badly off.

c.Debt to assets

DebtRatio = Total Debt ÷ Total Assets

=6,961,471,000÷ 8,092,460,000

=0.86

Thisimplies that 86% of the company’s assets are financed by debt. Thisratio is too high it signals a financial risk to the company sinceall debts have to be settled at their due time.

Category:Capital stock

  1. Describe the composition of your corporation`s contributed capital [Hint: contributed capital includes common and preferred stock plus any paid in capital in excess of par (or stated value)].

Thecompany has a common stock of 2,000,000,000 authorized shares at parvalue of USD 0.001. However, as of 31stDecember 2015 issued common stock is 131,425,000 shares at par valueof USD 0.001, translating to USD 131,000. Additional paid in capitalwas USD 3,414,692,000. After discounting the accumulated othercomprehensive loss and accumulated deficit, total contributed capitalstands at USD 1,088,944,000

3. Discuss Treasury Stock transactions during the current year, if any.

Thecompany used the treasury stock method to calculate any potentialdilutive effect of the conversion spread on diluted net income pershare. This was to settle the principal amount of ’outstanding convertible senior notes in cash.

Category:Operating Activities

1. Describe where Net Income is shown on the Statement of Cash Flowsand state the amount. Refer back to the Income Statement to verifythe amounts reported for Net Income are equal.

Thenet loss is at the beginning of the cash flow statement. It is USD888,663,000. The figure corresponds to the one on the statement ofoperations.

  1. What amount(s) is reported for depreciation and or amortization?

Theamount is USD 422,590,000

  1. Are any gains or losses reported on the Statement of Cash Flows? If so, provide a summary of transaction(s) that resulted in the gains and or losses. [Hint: you may need to review the Notes to Financial Statements to learn which transactions resulted in gains/losses].

Thereis a foreign exchange loss of USD 55,765,000 reported.

Category:Investing and Financing Activities

1.Discuss any investment(s) (type and amount) purchased, sold, orretired during the current period?

Purchasesof property and equipment excluding capital leases USD 1,634,850,000

Purchasesof short-term marketable securities USD 26,441,000

Businessacquisition USD 12,260,000

  1. Describe financing activities used by your corporation to increase cash (or other assets).

Thecorporation issued convertible and other debts issued common stockin public offering issued common stock in private placement andexercised stock options.

  1. Discuss financing activities that reduced cash.

Issuanceof common stock and convertible debt led to costs and paymentprincipal on capital leases and other debt.

Category: Analysis

1. Calculate the following ratio for the most current year and commenton the results of your ratio analysis.

a.Free cash flow

Basedon the data we have in the cash flow statement,

FreeCash Flow = Operating Cash Flow – Investment Expenditures

=(524,499,000) – 1,673,551,000

=USD-2,198,050,000

Thenegative free cash flow indicates that the company does not have cashto expand,buy back stock or pay its debts. It is not a healthyposition to be in.

References

Needles,Belverd E. Powers, Marian (2013).Principles of Financial Accounting.Financial Accounting Series (12 ed.). Cengage Learning.

Roca,L. C., &amp Searcy, C. (2012). An analysis of indicators disclosedin corporate sustainability reports. Journal of Cleaner Production,20(1), 103-118.

TeslaMotors Incorporation 2015 Annual Report. Retrieved on 15.10.2016 from http://ir.tesla.com/secfiling.cfm?filingID=1564590-16-13195&ampCIK=1318605#TSLA- 10K_20151231_HTM_ITEM_8

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