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| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
2024
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Common stock | TSLA | The Nasdaq Global Select Market |
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Emerging growth company | o |
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2024
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Consolidated Statements of Redeemable Noncontrolling Interests and Equity |
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Management's Discussion and Analysis of Financial Condition and Results of Operations |
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March 31, December 31, 2023 2022 Assets Current assets Cash and cash equivalents $ 16,048 $ 16,253 Short-term investments 6,354 5,932 Accounts receivable, net 2,993 2,952 Inventory 14,375 12,839 Prepaid expenses and other current assets 3,227 2,941 Total current assets 42,997 40,917 Operating lease vehicles, net 5,473 5,035 Solar energy systems, net 5,427 5,489 Property, plant and equipment, net 24,969 23,548 Operating lease right-of-use assets 2,800 2,563 Digital assets, net 184 184 Intangible assets, net 204 215 Goodwill 195 194 Other non-current assets 4,584 4,193 Total assets $ 86,833 $ 82,338 Liabilities Current liabilities Accounts payable $ 15,904 $ 15,255 Accrued liabilities and other 7,321 7,142 Deferred revenue 1,750 1,747 Customer deposits 1,057 1,063 Current portion of debt and finance leases 1,404 1,502 Total current liabilities 27,436 26,709 Debt and finance leases, net of current portion 1,272 1,597 Deferred revenue, net of current portion 2,911 2,804 Other long-term liabilities 5,979 5,330 Total liabilities 37,598 36,440 Commitments and contingencies (Note 9) Redeemable noncontrolling interests in subsidiaries 407 409 Equity Stockholders’ equity Preferred stock; $0.001 par value; 100 shares authorized; — — Common stock; $0.001 par value; 6,000 shares authorized; 3 3 Additional paid-in capital 32,878 32,177 Accumulated other comprehensive (loss) (225 ) (361 ) Retained earnings 15,398 12,885 Total stockholders’ equity 48,054 44,704 Noncontrolling interests in subsidiaries 774 785 Total liabilities and equity $ 86,833 $ 82,338 Three Months Ended March 31, 2023 2022 Revenues Automotive sales $ 18,878 $ 15,514 Automotive regulatory credits 521 679 Automotive leasing 564 668 Total automotive revenues 19,963 16,861 Energy generation and storage 1,529 616 Services and other 1,837 1,279 Total revenues 23,329 18,756 Cost of revenues Automotive sales 15,422 10,914 Automotive leasing 333 408 Total automotive cost of revenues 15,755 11,322 Energy generation and storage 1,361 688 Services and other 1,702 1,286 Total cost of revenues 18,818 13,296 Gross profit 4,511 5,460 Operating expenses Research and development 771 865 Selling, general and administrative 1,076 992 Total operating expenses 1,847 1,857 Income from operations 2,664 3,603 Interest income 213 28 Interest expense (29 ) (61 ) Other (expense) income, net (48 ) 56 Income before income taxes 2,800 3,626 Provision for income taxes 261 346 Net income 2,539 3,280 Net income (loss) attributable to noncontrolling 26 (38 ) Net income attributable to common stockholders $ 2,513 $ 3,318 Net income per share of common stock Basic $ 0.80 $ 1.07 Diluted $ 0.73 $ 0.95 Weighted average shares used in computing net Basic 3,166 3,103 Diluted 3,468 3,472 The accompanying notes are an integral part of these consolidated financial statements. Three Months Ended March 31, 2023 2022 Net income $ 2,539 $ 3,280 Other comprehensive income (loss): Foreign currency translation adjustment 130 (96 ) Unrealized net gain (loss) on investments 6 (8 ) Comprehensive income 2,675 3,176 Less: Comprehensive income (loss) attributable to 26 (38 ) Comprehensive income attributable to $ 2,649 $ 3,214 millions) Accumulated Redeemable Additional Other Total Noncontrolling Noncontrolling Common Stock Paid-In Comprehensive Retained Stockholders’ Interests in Total Three Months Ended March 31, 2023 Interests Shares Amount Capital (Loss) Earnings Equity Subsidiaries Equity Balance as of December 31, 2022 $ 409 3,164 $ 3 $ 32,177 $ (361 ) $ 12,885 $ 44,704 $ 785 $ 45,489 Exercises of conversion feature of — 0 0 0 — — 0 — 0 Issuance of common stock for equity — 5 0 231 — — 231 — 231 Stock-based compensation — — — 465 — — 465 — 465 Distributions to noncontrolling interests (5 ) — — — — — — (22 ) (22 ) Buy-outs of noncontrolling interests — — — 5 — — 5 (12 ) (7 ) Net income 3 — — — — 2,513 2,513 23 2,536 Other comprehensive income — — — — 136 — 136 — 136 Balance as of March 31, 2023 $ 407 3,169 $ 3 $ 32,878 $ (225 ) $ 15,398 $ 48,054 $ 774 $ 48,828 Accumulated Redeemable Additional Other Total Noncontrolling Noncontrolling Common Stock Paid-In Comprehensive Retained Stockholders’ Interests in Total Three Months Ended March 31, 2022 Interests Shares (1) Amount (1) Capital Income (Loss) Earnings (1) Equity Subsidiaries Equity Balance as of December 31, 2021 $ 568 3,100 $ 3 $ 29,803 $ 54 $ 329 $ 30,189 $ 826 $ 31,015 Exercises of conversion feature of — 0 0 0 — — 0 — 0 Issuance of common stock for equity — 8 0 202 — — 202 — 202 Stock-based compensation — — — 485 — — 485 — 485 Distributions to noncontrolling interests (12 ) — — — — — — (22 ) (22 ) Buy-out of noncontrolling interests (1 ) — — (5 ) — — (5 ) — (5 ) Net (loss) income (96 ) — — — — 3,318 3,318 58 3,376 Other comprehensive loss — — — — (104 ) — (104 ) — (104 ) Balance as of March 31, 2022 $ 459 3,108 $ 3 $ 30,485 $ (50 ) $ 3,647 $ 34,085 $ 862 $ 34,947 Three Months Ended March 31, 2023 2022 Cash Flows from Operating Activities Net income $ 2,539 $ 3,280 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and impairment 1,046 880 Stock-based compensation 418 418 Inventory and purchase commitments write-downs 50 33 Foreign currency transaction net unrealized gain (25 ) (30 ) Non-cash interest and other operating activities 15 16 Changes in operating assets and liabilities: Accounts receivable (32 ) (409 ) Inventory (1,540 ) (633 ) Operating lease vehicles (675 ) (462 ) Prepaid expenses and other current assets (79 ) (289 ) Other non-current assets (729 ) (611 ) Accounts payable and accrued liabilities 797 997 Deferred revenue 106 287 Customer deposits 2 204 Other long-term liabilities 620 314 Net cash provided by operating activities 2,513 3,995 Cash Flows from Investing Activities Purchases of property and equipment excluding finance leases, net of sales (2,072 ) (1,767 ) Purchases of solar energy systems, net of sales (1 ) (5 ) Purchase of intangible assets — (9 ) Purchases of investments (2,015 ) (386 ) Proceeds from maturities of investments 1,604 — Net cash used in investing activities (2,484 ) (2,167 ) Cash Flows from Financing Activities Repayments of convertible and other debt (302 ) (1,945 ) Proceeds from exercises of stock options and other stock issuances 231 202 Principal payments on finance leases (106 ) (123 ) Debt issuance costs (13 ) — Distributions paid to noncontrolling interests in subsidiaries (36 ) (42 ) Payments for buy-outs of noncontrolling interests in subsidiaries (7 ) (6 ) Net cash used in financing activities (233 ) (1,914 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash 50 (18 ) Net decrease in cash and cash equivalents and restricted cash (154 ) (104 ) Cash and cash equivalents and restricted cash, beginning of period 16,924 18,144 Cash and cash equivalents and restricted cash, end of period $ 16,770 $ 18,040 Supplemental Non-Cash Investing and Financing Activities Acquisitions of property and equipment included in liabilities $ 1,193 $ 1,036 Leased assets obtained in exchange for finance lease liabilities $ — $ 20 Leased assets obtained in exchange for operating lease liabilities $ 362 $ 271 Unaudited Interim Financial Statements 2023. Reclassifications Revenue Recognition The following table disaggregates our revenue by major source (in millions): Three Months Ended March 31, 2023 2022 Automotive sales $ 18,878 $ 15,514 Automotive regulatory credits 521 679 Energy generation and storage sales 1,413 503 Services and other 1,837 1,279 Total revenues from sales and services 22,649 17,975 Automotive leasing 564 668 Energy generation and storage leasing 116 113 Total revenues $ 23,329 $ 18,756 Lease receivables relating to sales-type leases are presented on the consolidated balance sheets as follows (in millions): March 31, 2023 December 31, 2022 Gross lease receivables $ 886 $ 837 Unearned interest income (99 ) (95 ) Allowance for expected credit losses (5 ) (4 ) Net investment in sales-type leases $ 782 $ 738 Reported as: Prepaid expenses and other current assets $ 177 $ 164 Other non-current assets 605 574 Net investment in sales-type leases $ 782 $ 738 performance obligation period. Net Income per Share of Common Stock Attributable to Common Stockholders The following table presents the reconciliation of net income attributable to common stockholders to net income used in computing basic and diluted net income per share of common stock (in millions): Three Months Ended March 31, 2023 2022 Net income attributable to common stockholders $ 2,513 $ 3,318 Less: Buy-out of noncontrolling interest (5 ) 5 Net income used in computing basic net income per share of common stock 2,518 3,313 Less: Dilutive convertible debt 0 0 Net income used in computing diluted net income per share of common stock $ 2,518 $ 3,313 Three Months Ended March 31, 2023 2022 Weighted average shares used in computing net income per share of common stock, basic 3,166 3,103 Add: Stock-based awards 289 313 Convertible senior notes 2 5 Warrants 11 51 Weighted average shares used in computing net income per share of common stock, diluted 3,468 3,472 Restricted Cash Our total cash and cash equivalents and restricted cash, as presented in the consolidated statements of cash flows, was as follows (in millions): March 31, December 31, March 31, December 31, 2023 2022 2022 2021 Cash and cash equivalents $ 16,048 $ 16,253 $ 17,505 $ 17,576 Restricted cash included in prepaid expenses and other 486 294 297 345 Restricted cash included in other non-current assets 236 377 238 223 Total as presented in the consolidated statements of cash flows $ 16,770 $ 16,924 $ 18,040 $ 18,144 Financing Receivables Concentration of Risk Warranties Accrued warranty activity consisted of the following (in millions): Three Months Ended March 31, 2023 2022 Accrued warranty—beginning of period $ 3,505 $ 2,101 Warranty costs incurred (280 ) (151 ) Net changes in liability for pre-existing warranties, 208 15 Provision for warranty 532 322 Accrued warranty—end of period $ 3,965 $ 2,287 not yet adopted adopt them for the year ending December 31, 2024. statements, once adopted. March 31, 2023 December 31, 2022 Fair Value Level I Level II Level III Fair Value Level I Level II Level III Money market funds $ 483 $ 483 $ — $ — $ 2,188 $ 2,188 $ — $ — U.S. government securities 1,418 — 1,418 — 894 — 894 — Corporate debt securities 836 — 836 — 885 — 885 — Certificates of deposit and time deposits 4,550 — 4,550 — 4,253 — 4,253 — Total $ 7,287 $ 483 $ 6,804 $ — $ 8,220 $ 2,188 $ 6,032 $ — Our cash, cash equivalents and investments classified by security type as of March 31, March 31, 2023 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 15,115 $ — $ — $ 15,115 $ 15,115 $ — Money market funds 483 — — 483 483 — U.S. government securities 1,420 — (2 ) 1,418 — 1,418 Corporate debt securities 852 1 (17 ) 836 — 836 Certificates of deposit and time deposits 4,550 — — 4,550 450 4,100 Total cash, cash equivalents and short-term investments $ 22,420 $ 1 $ (19 ) $ 22,402 $ 16,048 $ 6,354 December 31, 2022 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 13,965 $ — $ — $ 13,965 $ 13,965 $ — Money market funds 2,188 — — 2,188 2,188 — U.S. government securities 897 — (3 ) 894 — 894 Corporate debt securities 907 — (22 ) 885 — 885 Certificates of deposit and time deposits 4,252 1 — 4,253 100 4,153 Total cash, cash equivalents and short-term investments $ 22,209 $ 1 $ (25 ) $ 22,185 $ 16,253 $ 5,932 The following table summarizes the fair value of our investments by stated contractual maturities as of March 31, Due in 1 year or less $ 5,637 Due in 1 year through 5 years 569 Due in 5 years through 10 years 148 Total $ 6,354 March 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 2024 Notes $ 37 $ 375 $ 37 $ 223 Digital assets, net $ 184 $ 325 $ 184 $ 191 Note 3 – Inventory Our inventory consisted of the following (in millions): March 31, December 31, 2023 2022 Raw materials $ 6,405 $ 6,137 Work in process 2,458 2,385 Finished goods (1) 4,591 3,475 Service parts 921 842 Total $ 14,375 $ 12,839 Our property, plant and equipment, net, consisted of the following (in millions): March 31, December 31, 2023 2022 Machinery, equipment, vehicles and office furniture $ 14,139 $ 13,558 Tooling 2,696 2,579 Leasehold improvements 2,551 2,366 Land and buildings 8,144 7,751 Computer equipment, hardware and software 2,299 2,072 Construction in progress 4,894 4,263 34,723 32,589 Less: Accumulated depreciation (9,754 ) (9,041 ) Total $ 24,969 $ 23,548 products as well as construction related to our AI infrastructure. Our accrued liabilities and other current liabilities consisted of the following (in millions): March 31, December 31, 2023 2022 Accrued purchases (1) $ 2,640 $ 2,747 Taxes payable (2) 1,371 1,235 Payroll and related costs 1,064 1,026 Accrued warranty reserve, current portion 1,123 1,025 Sales return reserve, current portion 267 270 Operating lease liabilities, current portion 509 485 Other current liabilities 347 354 Total $ 7,321 $ 7,142 Our other long-term liabilities consisted of the following (in millions): March 31, December 31, 2023 2022 Operating lease liabilities $ 2,389 $ 2,164 Accrued warranty reserve 2,842 2,480 Other non-current liabilities 748 686 Total other long-term liabilities $ 5,979 $ 5,330 The following is a summary of our debt and finance leases as of March 31, Unpaid Unused Net Carrying Value Principal Committed Contractual Contractual Current Long-Term Balance Amount (1) Interest Rates Maturity Date Recourse debt: 2024 Notes $ — $ 37 $ 37 $ — 2.00 % May 2024 RCF Credit Agreement — — — 5,000 Not applicable January 2028 Solar Bonds — 7 7 — 4.70-5.75 % March 2025 - January 2031 Total recourse debt — 44 44 5,000 Non-recourse debt: Automotive Asset-backed Notes 903 410 1,317 — 0.36-4.64 % February 2024-September 2025 Solar Asset-backed Notes 4 12 16 — 4.80 % December 2026 Cash Equity Debt 28 351 389 — 5.25-5.81 % July 2033-January 2035 Automotive Lease-backed Credit Facilities — — — 155 Not applicable September 2024 Total non-recourse debt 935 773 1,722 155 Total debt 935 817 $ 1,766 $ 5,155 Finance leases 469 455 Total debt and finance leases $ 1,404 $ 1,272 Unpaid Unused Net Carrying Value Principal Committed Contractual Contractual Current Long-Term Balance Amount (2) Interest Rates Maturity Date Recourse debt: 2024 Notes $ — $ 37 $ 37 $ — 2.00 % May 2024 Credit Agreement — — — 2,266 Not applicable July 2023 Solar Bonds — 7 7 — 4.70-5.75 % March 2025 - January 2031 Total recourse debt — 44 44 2,266 Non-recourse debt: Automotive Asset-backed Notes 984 613 1,603 — 0.36-4.64 % December 2023-September 2025 Solar Asset-backed Notes 4 13 17 — 4.80 % December 2026 Cash Equity Debt 28 359 397 — 5.25-5.81 % July 2033-January 2035 Automotive Lease-backed Credit Facilities — — — 151 Not applicable September 2024 Total non-recourse debt 1,016 985 2,017 151 Total debt 1,016 1,029 $ 2,061 $ 2,417 Finance leases 486 568 Total debt and finance leases $ 1,502 $ 1,597 The following table summarizes our stock-based compensation expense by line item in the consolidated statements of operations (in millions): Three Months Ended March 31, 2023 2022 Cost of revenues $ 192 $ 131 Research and development 134 143 Selling, general and administrative 92 144 Total $ 418 $ 418 On January 30, 2024, the Court issued an opinion ordering recission of Mr. Musk’s 2018 compensation plan. Plaintiff’s counsel have filed a brief seeking a fee award of 29,402,900 Tesla shares, plus expenses of $1,120,115.50. Tesla’s opposition to the fee request is due on June 7, 2024, and a hearing is scheduled for July 8, 2024. On April 17, 2024, Tesla filed a preliminary proxy statement which included a number of proposals, including a proposal to ratify the 2018 CEO Performance Award. have an adverse impact on our results of operations, cash flows or financial position. on July 11, 2023. On July 14, 2023, plaintiffs filed a notice of appeal. 3, 2024. Trial is scheduled for October 14, 2024. the United States District Court for the Northern District of California asserting claims for race harassment and retaliation and seeking, among other things, monetary and injunctive relief. On December 18, 2023, Tesla filed a motion to stay the case. Separately, on December 26, 2023, Tesla filed a motion to dismiss the case. Both motions were subsequently denied. April 12, 2024, with leave for the Plaintiffs to amend. FSD Capability. Tesla opposed the motion. On September 30, 2023, the Court denied the request for a preliminary injunction, compelled four of five plaintiffs to arbitration, and dismissed the claims of the fifth plaintiff with leave to amend the complaint. On October 31, 2023, the remaining plaintiff in the Northern District of California action filed an amended complaint, which Tesla has moved to dismiss. On October 2, 2023, a similar proposed class action was filed in San Diego County Superior Court in California. Tesla subsequently removed the San Diego County case to federal court and on January 8, 2024, the federal court granted Tesla’s motion to transfer the case to the U.S. District Court for the Northern District of California. On July 17, 2023, these plaintiffs filed a consolidated amended complaint. On September 27, 2023, the court granted Tesla’s motion to compel arbitration as to three of the plaintiffs, and on November 17, 2023, the court granted Tesla’s motion to dismiss without prejudice. The plaintiffs filed a Consolidated Second Amended Complaint on December 12, 2023, which Tesla has moved to dismiss. Plaintiffs also appealed the court’s arbitration order, which was denied. position or brand. The aggregate carrying values of the variable interest entities’ assets and liabilities, after elimination of any intercompany transactions and balances, in the consolidated balance sheets were as follows (in millions): March 31, December 31, 2023 2022 Assets Current assets Cash and cash equivalents $ 58 $ 68 Accounts receivable, net 29 22 Prepaid expenses and other current assets 265 274 Total current assets 352 364 Solar energy systems, net 4,014 4,060 Other non-current assets 390 404 Total assets $ 4,756 $ 4,828 Liabilities Current liabilities Accrued liabilities and other $ 59 $ 69 Deferred revenue 9 10 Current portion of debt and finance leases 931 1,013 Total current liabilities 999 1,092 Deferred revenue, net of current portion 148 149 Debt and finance leases, net of current portion 761 971 Other long-term liabilities 3 3 Total liabilities $ 1,911 $ 2,215 Three Months Ended March 31, 2023 2022 Automotive segment Revenues $ 21,800 $ 18,140 Gross profit $ 4,343 $ 5,532 Energy generation and storage segment Revenues $ 1,529 $ 616 Gross profit $ 168 $ (72 ) The following table presents revenues by geographic area based on the sales location of our products (in millions): Three Months Ended March 31, 2023 2022 United States $ 11,247 $ 8,734 China 4,891 4,650 Other international 7,191 5,372 Total $ 23,329 $ 18,756 March 31, December 31, 2023 2022 United States $ 22,613 $ 21,667 Germany 3,850 3,547 China 2,953 2,978 Other international 980 845 Total $ 30,396 $ 29,037 March 31, December 31, 2023 2022 Automotive $ 12,538 $ 10,996 Energy generation and storage 1,837 1,843 Total $ 14,375 $ 12,839 products. Production Location Vehicle Model(s) Production Status Fremont Factory Model S / Model X Active Model 3 / Model Y Active Gigafactory Shanghai Model 3 / Model Y Active Gigafactory Berlin-Brandenburg Model Y Active Gigafactory Texas Model Y Active Cybertruck Gigafactory Nevada Tesla Semi Pilot production In development TBD In development regulations and initiatives. competitors, while our new products will help enable future growth. products. Three Months Ended Change (Dollars in millions) 2023 2022 $ % Automotive sales $ 18,878 $ 15,514 $ 3,364 22 % Automotive regulatory credits 521 679 (158 ) (23 )% Automotive leasing 564 668 (104 ) (16 )% Total automotive revenues 19,963 16,861 3,102 18 % Services and other 1,837 1,279 558 44 % Total automotive & services and other 21,800 18,140 3,660 20 % Energy generation and storage segment revenue 1,529 616 913 148 % Total revenues $ 23,329 $ 18,756 $ 4,573 24 % partially due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin-Brandenburg. The decreases were partially offset by an increase of approximately 7,000 deliveries of other models as we ramped our production of Cybertruck. 2023. vehicles. solar deployments. Three Months Ended Change (Dollars in millions) 2023 2022 $ % Cost of revenues Automotive sales $ 15,422 $ 10,914 $ 4,508 41 % Automotive leasing 333 408 (75 ) (18 )% Total automotive cost of revenues 15,755 11,322 4,433 39 % Services and other 1,702 1,286 416 32 % Total automotive & services and other 17,457 12,608 4,849 38 % Energy generation and storage segment 1,361 688 673 98 % Total cost of revenues $ 18,818 $ 13,296 $ 5,522 42 % Gross profit total automotive $ 4,208 $ 5,539 Gross margin total automotive 21.1 % 32.9 % Gross profit total automotive & services and other $ 4,343 $ 5,532 Gross margin total automotive & services and other 19.9 % 30.5 % Gross profit energy generation and storage segment $ 168 $ (72 ) Gross margin energy generation and storage segment 11.0 % (11.7 )% Total gross profit $ 4,511 $ 5,460 Total gross margin 19.3 % 29.1 % ramps. other revenue as discussed above. above. above. IRA manufacturing credits recognized year over year. Three Months Ended Change (Dollars in millions) 2023 2022 $ % Research and development $ 771 $ 865 $ (94 ) (11 )% As a percentage of revenues 3 % 5 % Three Months Ended Change (Dollars in millions) 2023 2022 $ % Selling, general and administrative $ 1,076 $ 992 $ 84 8 % As a percentage of revenues 5 % 5 % increase in promotions, advertising and other marketing expenses. Three Months Ended Change (Dollars in millions) 2023 2022 $ % Interest income $ 213 $ 28 $ 185 661 % rates and our increasing portfolio balance. Three Months Ended Change (Dollars in millions) 2023 2022 $ % Other (expense) income, net $ (48 ) $ 56 $ (104 ) Not meaningful rates on our intercompany balances. As our intercompany balances are significant in nature and as we do not typically hedge foreign currency risk, we can experience significant fluctuations in foreign currency exchange rate gains and losses from period to period. Three Months Ended Change (Dollars in millions) 2023 2022 $ % Provision for income taxes $ 261 $ 346 $ (85 ) (25 )% Effective tax rate 9 % 10 % 2023. Our effective tax rate Three Months Ended (Dollars in millions) 2023 2022 Net cash provided by operating activities $ 2,513 $ 3,995 Net cash used in investing activities $ (2,484 ) $ (2,167 ) Net cash used in financing activities $ (233 ) $ (1,914 ) $1.08 billion. Exhibit Incorporated by Reference Filed Exhibit Description Form File No. Exhibit Filing Date Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Executive Officer — — — — X 31.2 Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Financial Officer — — — — X 32.1* — — — — 101.INS Inline XBRL Instance Document — — — — X 101.SCH Inline XBRL Taxonomy Extension Schema Document — — — — X 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. — — — — X 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document — — — — X 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document — — — — X 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document — — — — X 104 Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101) Tesla, Inc. Date: April /s/ Chief Financial Officer (Principal Financial Officer and
no shares issued and outstanding
3,169 and 3,164 shares issued and outstanding as of
March 31, 2023 and December 31, 2022, respectivelyMarch 31,
2024December 31,
2023Assets Current assets Cash and cash equivalents $ 11,805 $ 16,398 Short-term investments 15,058 12,696 Accounts receivable, net 3,887 3,508 Inventory 16,033 13,626 Prepaid expenses and other current assets 3,752 3,388 Total current assets 50,535 49,616 Operating lease vehicles, net 5,736 5,989 Solar energy systems, net 5,162 5,229 Property, plant and equipment, net 31,436 29,725 Operating lease right-of-use assets 4,367 4,180 Digital assets, net 184 184 Intangible assets, net 171 178 Goodwill 250 253 Deferred tax assets 6,769 6,733 Other non-current assets 4,616 4,531 Total assets $ 109,226 $ 106,618 Liabilities Current liabilities Accounts payable $ 14,725 $ 14,431 Accrued liabilities and other 9,243 9,080 Deferred revenue 3,024 2,864 Current portion of debt and finance leases 2,461 2,373 Total current liabilities 29,453 28,748 Debt and finance leases, net of current portion 2,899 2,857 Deferred revenue, net of current portion 3,214 3,251 Other long-term liabilities 8,480 8,153 Total liabilities 44,046 43,009 Commitments and contingencies (Note 10) Redeemable noncontrolling interests in subsidiaries 73 242 Equity Stockholders’ equity Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding — — Common stock; $0.001 par value; 6,000 shares authorized; 3,189 and 3,185 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 3 3 Additional paid-in capital 35,763 34,892 Accumulated other comprehensive loss (399) (143) Retained earnings 29,011 27,882 Total stockholders’ equity 64,378 62,634 Noncontrolling interests in subsidiaries 729 733 Total liabilities and equity $ 109,226 $ 106,618
interests and redeemable noncontrolling interests
in subsidiaries
attributable to common stockholders (1)
income per share of common stock (1)(1) Three Months Ended March 31, 2024 2023 Revenues Automotive sales $ 16,460 $ 18,878 Automotive regulatory credits 442 521 Automotive leasing 476 564 Total automotive revenues 17,378 19,963 Energy generation and storage 1,635 1,529 Services and other 2,288 1,837 Total revenues 21,301 23,329 Cost of revenues Automotive sales 13,897 15,422 Automotive leasing 269 333 Total automotive cost of revenues 14,166 15,755 Energy generation and storage 1,232 1,361 Services and other 2,207 1,702 Total cost of revenues 17,605 18,818 Gross profit 3,696 4,511 Operating expenses Research and development 1,151 771 Selling, general and administrative 1,374 1,076 Total operating expenses 2,525 1,847 Income from operations 1,171 2,664 Interest income 350 213 Interest expense (76) (29) Other income (expense), net 108 (48) Income before income taxes 1,553 2,800 Provision for income taxes 409 261 Net income 1,144 2,539 Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries 15 26 Net income attributable to common stockholders $ 1,129 $ 2,513 Net income per share of common stock attributable to common stockholders Basic $ 0.37 $ 0.80 Diluted $ 0.34 $ 0.73 Weighted average shares used in computing net income per share of common stock Basic 3,186 3,166 Diluted 3,484 3,468 Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in August 2022.
noncontrolling interests and redeemable
noncontrolling interests in subsidiaries
common stockholders Three Months Ended March 31, 2024 2023 Net income $ 1,144 $ 2,539 Other comprehensive (loss) income: Foreign currency translation adjustment (252) 130 Unrealized net (loss) gain on investments, net of tax (4) 6 Comprehensive income 888 2,675 Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries 15 26 Comprehensive income attributable to common stockholders $ 873 $ 2,649 millions, except per share data)
convertible senior notes
incentive awards
convertible senior notes
incentive awards(1)Three Months Ended March 31, 2024 Common Stock Additional
Paid-In
CapitalRetained
EarningsShares Amount Balance as of December 31, 2023 $ 242 3,185 $ 3 $ 34,892 $ (143) $ 27,882 $ 62,634 $ 733 $ 63,367 Issuance of common stock for equity incentive awards — 4 — 251 — — 251 — 251 Stock-based compensation — — — 578 — — 578 — 578 Distributions to noncontrolling interests (6) — — — — — — (16) (16) Buy-outs of noncontrolling interests (166) — — 42 — — 42 — 42 Net income 3 — — — — 1,129 1,129 12 1,141 Other comprehensive loss — — — — (256) — (256) — (256) Balance as of March 31, 2024 $ 73 3,189 $ 3 $ 35,763 $ (399) $ 29,011 $ 64,378 $ 729 $ 65,107 Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in August 2022.Three Months Ended March 31, 2023 Common Stock Additional
Paid-In
CapitalRetained
EarningsShares Amount Balance as of December 31, 2022 $ 409 3,164 $ 3 $ 32,177 $ (361) $ 12,885 $ 44,704 $ 785 $ 45,489 Issuance of common stock for equity incentive awards — 5 — 231 — — 231 — 231 Stock-based compensation — — — 465 — — 465 — 465 Distributions to noncontrolling interests (5) — — — — — — (22) (22) Buy-outs of noncontrolling interests — — — 5 — — 5 (12) (7) Net income 3 — — — — 2,513 2,513 23 2,536 Other comprehensive income — — — — 136 — 136 — 136 Balance as of March 31, 2023 $ 407 3,169 $ 3 $ 32,878 $ (225) $ 15,398 $ 48,054 $ 774 $ 48,828 Three Months Ended March 31, 2024 2023 Cash Flows from Operating Activities Net income $ 1,144 $ 2,539 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and impairment 1,246 1,046 Stock-based compensation 524 418 Inventory and purchase commitments write-downs 68 50 Foreign currency transaction net unrealized gain (63) (25) Deferred income taxes (11) (55) Non-cash interest and other operating activities (5) 15 Changes in operating assets and liabilities: Accounts receivable (422) (32) Inventory (2,697) (1,540) Operating lease vehicles (12) (675) Prepaid expenses and other assets (972) (737) Accounts payable, accrued and other liabilities 1,247 1,403 Deferred revenue 195 106 Net cash provided by operating activities 242 2,513 Cash Flows from Investing Activities Purchases of property and equipment excluding finance leases, net of sales (2,773) (2,072) Purchases of solar energy systems, net of sales (4) (1) Purchases of investments (6,622) (2,015) Proceeds from maturities of investments 4,315 1,604 Net cash used in investing activities (5,084) (2,484) Cash Flows from Financing Activities Proceeds from issuances of debt 776 — Repayments of debt (591) (302) Proceeds from exercises of stock options and other stock issuances 251 231 Principal payments on finance leases (106) (106) Debt issuance costs (3) (13) Distributions paid to noncontrolling interests in subsidiaries (30) (36) Payments for buy-outs of noncontrolling interests in subsidiaries (101) (7) Net cash provided by (used in) financing activities 196 (233) Effect of exchange rate changes on cash and cash equivalents and restricted cash (79) 50 Net decrease in cash and cash equivalents and restricted cash (4,725) (154) Cash and cash equivalents and restricted cash, beginning of period 17,189 16,924 Cash and cash equivalents and restricted cash, end of period $ 12,464 $ 16,770 Supplemental Non-Cash Investing and Financing Activities Acquisitions of property and equipment included in liabilities $ 1,431 $ 1,193 Leased assets obtained in exchange for finance lease liabilities $ 20 $ — Leased assets obtained in exchange for operating lease liabilities $ 406 $ 362 2023,2024, the consolidated statements of operations, the consolidated statements of comprehensive income, the consolidated statements of redeemable noncontrolling interests and equity, and the consolidated statements of cash flows for the three months ended March 31, 20232024 and 2022,2023, as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 20222023 was derived from the audited consolidated financial statements as of that date. The interim consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022. Three Months Ended March 31, 2024 2023 Automotive sales $ 16,460 $ 18,878 Automotive regulatory credits 442 521 Energy generation and storage sales 1,522 1,413 Services and other 2,288 1,837 Total revenues from sales and services 20,712 22,649 Automotive leasing 476 564 Energy generation and storage leasing 113 116 Total revenues $ 21,301 $ 23,329 RevenueThe total sales return reserve on vehicles sold with resale value guarantees was $68 million and $91 million as of March 31, 2023 and December 31, 2022, respectively, of which $34 million and $40 million was short-term, respectively. is related to the access to our Full Self Driving (Supervised) (“FSD”) Capability features and their ongoing maintenance, internet connectivity, free Supercharging programs and over-the-air software updates primarily on automotive sales which amounted to $3.04$3.50 billion and $2.91$3.54 billion as of March 31, 20232024 and December 31, 2022,2023, respectively.balancebalances as of December 31, 2023 and 2022 and 2021 was $134$281 million and $66$134 million for the three months ended March 31, 20232024 and 2022,2023, respectively. Of the total deferred revenue balance as of March 31, 2023,2024, we expect to recognize $679$848 million of revenue in the next 12 months. The remaining balance will be recognized at the time of transfer of control of the product or over the performance period.9been providingfinancing receivables on our consolidated balance sheets related to loans we provide for financing our automotive deliveries in volume since fiscal year 2022.deliveries. As of March 31, 20232024 and December 31, 2022,2023, we have recordedcurrent net financing receivables on the consolidated balance sheets, of which $191$241 million and $128$242 million, respectively, is recorded withinin Accounts receivable, net, for the current portion and $966$971 million and $665 million,$1.04 billion, respectively, is recorded withinin Other non-current assets for the long-term portion.Automotive Regulatory CreditsDuring the three months ended March 31, 2022, we had also recognized $288 million in revenue due to changes in regulation which entitled us to additional consideration for credits sold previously.For the three months ended March 31, 2023, we recognized $101 million of sales-type leasing revenue and $76 million of sales-type leasing cost of revenue. For the three months ended March 31, 2022, we recognized $265 million of sales-type leasing revenue and $164 million of sales-type leasing cost of revenue. March 31, 2024 December 31, 2023 Gross lease receivables $ 702 $ 780 Unearned interest income (66) (78) Allowance for expected credit losses (6) (6) Net investment in sales-type leases $ 630 $ 696 Reported as: Prepaid expenses and other current assets $ 184 $ 189 Other non-current assets 446 507 Net investment in sales-type leases $ 630 $ 696 fees charged for prepayments, which is recognized as revenue ratably over the respective customer contract term. As of March 31, 20232024 and December 31, 2022,2023, deferred revenue related to such customer payments amounted to $770 million$1.78 billion and $863 million,$1.60 billion, respectively, mainly due to billings for milestone payments.contractual payment terms. Revenue recognized from the deferred revenue balancebalances as of December 31, 2023 and 2022 and 2021 was $230$417 million and $52$230 million for the three months ended March 31, 20232024 and 2022,2023, respectively. As of March 31, 2023,2024, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $209 million.$3.86 billion. Of this amount, we expect to recognize $12 million$1.00 billion in the next 12 months and the rest over the remaining over a period up to 25 years.been providingfinancing receivables on our consolidated balance sheets related to loans we provide for financing our energy generation products in volume since fiscal year 2022.products. As of March 31, 20232024 and December 31, 2022,2023, we have recordedcurrent net financing receivables on the consolidated balance sheets, of which $29$32 million and $24$31 million, respectively, is recorded withinin Accounts receivable, net, for the current portion and $448$608 million and $387$578 million, respectively, is recorded withinin Other non-current assets for the long-term portion.Theretransactions that occur during the ordinary course of business for which the ultimate tax determination is uncertain. As of March 31, 2023 and December 31, 2022, the aggregate balances of our gross unrecognized tax benefits were $926 million and $870 million, respectively, of which $578 million and $572 million, respectively, would not give risesubject to changes in our effective tax rate since these tax benefits would increase a deferred tax asset that is currently fully offset by a valuation allowance.We file income tax returnstaxes in the U.S. and various state andin many foreign jurisdictions. Significant judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets that are not more likely than not to be realized. We are currently under examination bymonitor the Internal Revenue Service (“IRS”)realizability of our deferred tax assets taking into account all relevant factors at each reporting period. In completing our assessment of realizability of our deferred tax assets, we consider our history of income (loss) measured at pre-tax income (loss) adjusted for permanent book-tax differences on a jurisdictional basis, volatility in actual earnings, excess tax benefits related to stock-based compensation in recent prior years, and impacts of the years 2015 to 2018. Additional tax years withintiming of reversal of existing temporary differences. We also rely on our assessment of the periods 2004 to 2014 and 2019 to 2021 remain subject to examination for federal income tax purposes. All net operating losses and tax credits generated to date are subject to adjustment for U.S. federal and state income tax purposes. Our returns for 2004 and subsequent tax years remain subject to examination in U.S. state and foreign jurisdictions.Given theCompany’s projected future results of business operations, including uncertainty in timing and outcomefuture operating results relative to historical results, volatility in the market price of our tax examinations,common stock and its performance over time, variable macroeconomic conditions impacting our ability to forecast future taxable income, and changes in business that may affect the existence and magnitude of future taxable income. Our valuation allowance assessment is based on our best estimate of future results considering all available information.rangerelevant period. Each quarter, we update our estimate of the reasonably possible change in gross unrecognizedannual effective tax benefits within twelve months cannot be made at this time.rate, and if our estimated tax rate changes, we make a cumulative adjustment.10Three Months Ended March 31, 2024 2023 Net income attributable to common stockholders $ 1,129 $ 2,513 Less: Buy-out of noncontrolling interest (42) (5) Net income used in computing basic and diluted net income per share of common stock $ 1,171 $ 2,518 as adjusted to give effect to the three-for-one stock split effected in the form of a stock dividend in August 2022 (the “2022 Stock Split”) (in millions):Three Months Ended March 31, 2024 2023 Weighted average shares used in computing net income per share of common stock, basic 3,186 3,166 Add: Stock-based awards 286 289 Convertible senior notes 1 2 Warrants 11 11 Weighted average shares used in computing net income per share of common stock, diluted 3,484 3,468 as adjusted to give effect to the 2022 Stock Split (in millions):Three Months Ended March 31, 2024 2023 Stock-based awards 23 25
current assets11 March 31,
2024December 31,
2023March 31,
2023December 31,
2022Cash and cash equivalents $ 11,805 $ 16,398 $ 16,048 $ 16,253 Restricted cash included in prepaid expenses and other current assets 363 543 486 294 Restricted cash included in other non-current assets 296 248 236 377 Total as presented in the consolidated statements of cash flows $ 12,464 $ 17,189 $ 16,770 $ 16,924 which are typically transferred to other manufacturers during the last few days of the quarter, is dependent on contractual payment terms. Additionally, government rebates can take up to a year or more to be collected depending on the customary processing timelines of the specific jurisdictions issuing them. These various factors may have a significant impact on our accounts receivable balance from period to period. As of March 31, 20232024 and December 31, 2022, we had $5752023, government rebates receivable was $572 million and $753$378 million, respectively, of long-term government rebatesin Accounts receivable, net for the current portion and $45 million and $207 million, respectively, in Other non-current assets for the long-term portion in our consolidated balance sheets.20232024 and December 31, 2022,2023, the vast majority of our financing receivables were at current status with onlyan immaterial balancesbalance being past due. As of March 31, 2024 and December 31, 2023, the majority of our financing receivables, excluding MyPower notes receivable, were originated in 2023 and 2022, and as of December 31, 2022, the majority of our financing receivables, excluding MyPower notes receivable, were originated in 2022.20232024 and December 31, 2022,2023, the total outstanding balance of MyPower customer notes receivable, net of allowance for expected credit losses, was $276$263 million and $280$266 million, respectively, of which $6$5 million and $7 million werewas due in the next 12 months as of March 31, 2023 and December 31, 2022, respectively.months. As of March 31, 20232024 and December 31, 2022,2023, the allowance for expected credit losses was $37$36 million.comprised of deposits which are diversified amongon deposit at high credit quality financial institutions or invested in U.S. government securities.securities, commercial paper, corporate debt securities and money market funds. These deposits are typically in excess of insured limits. As of March 31, 20232024 and December 31, 2022, 2023, no entity represented 10%10% or more of our total receivables balance.Operating Lease VehiclesThe gross costTable of operating lease vehicles as of March 31, 2023 and December 31, 2022 was $Contents6.56 billion and $6.08 billion, respectively. Operating lease vehicles on the consolidated balance sheets are presented net of accumulated depreciation of $1.09 billion and $1.04 billion as of March 31, 2023 and December 31, 2022, respectively.
including expirations and foreign exchange impact12Three Months Ended March 31, 2024 2023 Accrued warranty—beginning of period $ 5,152 $ 3,505 Warranty costs incurred (328) (280) Net changes in liability for pre-existing warranties, including expirations and foreign exchange impact (18) 208 Provision for warranty 547 532 Accrued warranty—end of period $ 5,353 $ 3,965 adoptedissued accounting pronouncementsOctober 2021,November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers2023-07, Improvements to Reportable Segment Disclosures (Topic 805)280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an acquirerexplanation of how the CODM uses the reported measures of a segment’s profit or loss in a business combinationassessing segment performance and deciding how to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts.allocate resources. The ASU is effective for annual periods beginning after December 15, 2022, including2023, and interim periods within those fiscal years.years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in us including the additional required disclosures when adopted. We adoptedare currently evaluating the provisions of this ASU prospectively on January 1, 2023. This ASU has not and is currently not expectedexpect to have a material impact on our consolidated financial statements.March 2022,December 2023, the FASB issued ASU 2022-02, Troubled Debt RestructuringsNo. 2023-08, Accounting for and Vintage Disclosures.Disclosure of Crypto Assets (Subtopic 350-60). This ASU eliminatesrequires certain crypto assets to be measured at fair value separately on the accounting guidance for troubled debt restructurings by creditors that have adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which we adopted on January 1, 2020.balance sheet and in the income statement each reporting period. This ASU also enhances the other intangible asset disclosure requirements by requiring the name, cost basis, fair value, and number of units for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the ASU amends the guidance on vintage disclosures to require entities to disclose current period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20.each significant crypto asset holding. The ASU is effective for annual periods beginning after December 15, 2022,2024, including interim periods within those fiscal years. We adoptedAdoption of the ASU prospectively on January 1, 2023.requires a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period in which an entity adopts the amendments. Early adoption is also permitted, including adoption in an interim period. However, if the ASU is early adopted in an interim period, an entity must adopt the ASU as of the beginning of the fiscal year that includes the interim period. This ASU haswill result in gains and losses recorded in the consolidated financial statements of operations and additional disclosures when adopted. We are currently evaluating the adoption of this ASU and it could materially affect the carrying value of our crypto assets held and the gains and losses relating thereto, depending on the fair value at adoption.and is currently not expected to have a material impact onyet been issued or made available for issuance. This ASU will likely result in the required additional disclosures being included in our consolidated financial statements.On August 16, 2022, the Inflation Reduction ActTable of 2022 (“IRA”) was enacted into law and is effective for taxable years beginning after December 31, 2022. The IRA includes multiple incentives to promote clean energy, electric vehicles, battery and energy storage manufacture or purchase, in addition to a new corporate alternative minimum tax of Contents15% on adjusted financial statement income of corporations with profits greater than $1 billion. Some of these measures are expected to materially affect our consolidated financial statements. For the three month period ended March 31, 2023, the impact was primarily a reduction of our material costs. We will continue to evaluate the effects of IRA as more guidance is issued and the relevant implications to our consolidated financial statements. March 31, 2024 December 31, 2023 Fair Value Level I Level II Level III Fair Value Level I Level II Level III Commercial paper 1320232024 and December 31, 20222023 consisted of the following (in millions): March 31, 2024 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 11,387 $ — $ — $ 11,387 $ 11,387 $ — Money market funds 368 — — 368 368 — U.S. government securities 4,124 — (2) 4,122 — 4,122 Corporate debt securities 423 1 (4) 420 — 420 Certificates of deposit and time deposits 8,155 — — 8,155 — 8,155 Commercial paper 2,414 — (3) 2,411 50 2,361 Total cash, cash equivalents and short-term investments $ 26,871 $ 1 $ (9) $ 26,863 $ 11,805 $ 15,058 December 31, 2023 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 15,903 $ — $ — $ 15,903 $ 15,903 $ — Money market funds 109 — — 109 109 — U.S. government securities 5,136 1 (1) 5,136 277 4,859 Corporate debt securities 485 1 (6) 480 — 480 Certificates of deposit and time deposits 6,995 1 — 6,996 — 6,996 Commercial paper 470 — — 470 109 361 Total cash, cash equivalents and short-term investments $ 29,098 $ 3 $ (7) $ 29,094 $ 16,398 $ 12,696 income,, net in the consolidated statements of operations. For the three months ended March 31, 20232024 and 2022,2023, we did not recognize any material gross realized gains, losses or credit losses. The ending allowance balances for credit losses were immaterial as of March 31, 20232024 and December 31, 2022.2023. We have determined that the gross unrealized losses on our investments as of March 31, 20232024 and December 31, 20222023 were temporary in nature.20232024 (in millions):Due in 1 year or less $ 14,805 Due in 1 year through 5 years 231 Due in 5 years through 10 years 22 Total $ 15,058 2.00%2.00% Convertible Senior Notes due in 2024 (“2024 Notes”) and digital assets. March 31, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value March 31,
2024December 31,
2023Raw materials $ 5,584 $ 5,390 Work in process 2,507 2,016 Finished goods (1) 6,747 5,049 Service parts 1,195 1,171 Total $ 16,033 $ 13,626 vehicles in transitproducts-in-transit to fulfill customer orders, new vehicles available for sale, used vehicles and energy products available for sale.inventoriesinventory or when we believe that the net realizable value of inventoriesinventory is less than the carrying value. During the three months ended March 31, 20232024 and 2022,2023, we recorded write-downs of $39$39 million and $26 million, respectively, in Cost of revenues in the consolidated statements of operations.March 31,
2024December 31,
2023Machinery, equipment, vehicles and office furniture $ 16,942 $ 16,309 Tooling 3,480 3,129 Leasehold improvements 3,291 3,136 Land and buildings 9,852 9,498 AI infrastructure 2,255 1,510 Computer equipment, hardware and software 2,534 2,409 Construction in progress 5,934 5,791 44,288 41,782 Less: Accumulated depreciation (12,852) (12,057) Total $ 31,436 $ 29,725 Gigafactory Texas and Gigafactory Berlin-Brandenburg, andour facilities, equipment and tooling related to the manufacturing of our products.and 2022 was $722$929 million and $551$722 million, respectively.March 31,
2024December 31,
2023Accrued purchases (1) $ 2,635 $ 2,721 Accrued warranty reserve, current portion 1,605 1,546 Payroll and related costs 1,464 1,325 Taxes payable (2) 1,186 1,204 Customer deposits 888 876 Operating lease liabilities, current portion 704 672 Sales return reserve, current portion 195 219 Other current liabilities 566 517 Total $ 9,243 $ 9,080 15March 31,
2024December 31,
2023Operating lease liabilities $ 3,847 $ 3,671 Accrued warranty reserve 3,748 3,606 Other non-current liabilities 885 876 Total other long-term liabilities $ 8,480 $ 8,153 20232024 (in millions): Net Carrying Value Unpaid
Principal
BalanceUnused
Committed
Amount (1)Contractual
Interest RatesContractual
Maturity Date Current Long-Term Recourse debt: 2024 Notes $ 21 $ — $ 21 $ — 2.00 % May 2024 RCF Credit Agreement — — — 5,000 Not applicable January 2028 Solar Bonds 1 6 7 — 4.70-5.75% March 2025-January 2031 Other 26 — 26 — 5.20 % December 2026 Total recourse debt 48 6 54 5,000 Non-recourse debt: Automotive Asset-backed Notes 2,054 2,405 4,475 — 0.60-6.57% December 2024-May 2031 Solar Asset-backed Notes 4 7 12 — 4.80 % December 2026 Cash Equity Debt 29 321 359 — 5.25-5.81% July 2033-January 2035 Total non-recourse debt 2,087 2,733 4,846 — Total debt 2,135 2,739 $ 4,900 $ 5,000 Finance leases 326 160 Total debt and finance leases $ 2,461 $ 2,899 20222023 (in millions):Net Carrying Value Unpaid
Principal
BalanceUnused
Committed
Amount (1)Contractual
Interest RatesContractual
Maturity DateCurrent Long-Term Recourse debt: 2024 Notes $ 37 $ — $ 37 $ — 2.00 % May 2024 RCF Credit Agreement — — — 5,000 Not applicable January 2028 Solar Bonds — 7 7 — 4.70-5.75% March 2025-January 2031 Other — — — 28 Not applicable December 2026 Total recourse debt 37 7 44 5,028 Non-recourse debt: Automotive Asset-backed Notes 1,906 2,337 4,259 — 0.60-6.57% July 2024-May 2031 Solar Asset-backed Notes 4 8 13 — 4.80 % December 2026 Cash Equity Debt 28 330 367 — 5.25-5.81% July 2033-January 2035 Total non-recourse debt 1,938 2,675 4,639 — Total debt 1,975 2,682 $ 4,683 $ 5,028 Finance leases 398 175 Total debt and finance leases $ 2,373 $ 2,857 credit facilities,RCF Credit Agreement, except certain specified conditions prior to draw-down, including pledging our leased vehicles and our interests in those leases and as may be described below and indraw-down. Refer to the notes to the consolidated financial statements included in our reportreporting on Form 10-K for the year ended December 31, 2022.(2)There are no restrictions on draw-down or use for general corporate purposes with respect to any available committed funds under our credit facilities, except certain specified conditions prior to draw-down, including pledging to our lenders sufficient amounts of qualified receivables, inventories, leased vehicles and our interests in those leases or various other assets and as may be described in the notes to the consolidated financial statements included in our report on Form 10-K2023 for the year ended December 31, 2022.terms of the facility.assets of the respective guarantors.assets. Non-recourse debt refers to debt that is recourse to only assets of our subsidiaries. The differences between the unpaid principal balances and the net carrying values are due to debt discounts or deferred financingissuance costs. As of March 31, 2023,2024, we were in material compliance with all financial debt covenants.16During2023,2024, we transferred beneficial interests related to certain leased vehicles into a special purpose entity and issued $750 million in aggregate principal amount of Automotive Asset-backed Notes, with terms similar to our other previously issued Automotive Asset-backed Notes. The proceeds from the closing priceissuance, net of our common stock continued to exceed 130% of the applicable conversion price of our 2024 Notes on at least 20 of the last 30 consecutive trading days of the quarter, causing the 2024 Notes to be convertible by their holders during the second quarter of 2023. Should the closing price conditions continue to be met in a future quarter for the 2024 Notes, the 2024 Notes will be convertible at their holders’ option during the immediately following quarter.debt issuance costs, were $747 million.2021 Performance-Based Stock Option & Restricted Stock Unit (“RSU”) AwardsDuring the fourth quarter of 2021,granted togrants certain employees performance-based RSUsrestricted stock units and stock options to purchase an aggregate 2.2 million shares of our common stock, as adjusted to give effect to the 2022 Stock Split. options.2023,2024, we had unrecognized stock-based compensation expense of $170$613 million whichunder these grants to purchase or receive an aggregate 5.0 million shares of our common stock. For awards probable of achievement, we estimate the unrecognized stock-based compensation expense of $104 million will be recognized over a weighted-average period of 3 4.8 years.20232024 and 2022, we recorded $25 million and $69 million, respectively, of2023, stock-based compensation expense related to this grant,these grants, net of forfeitures.forfeitures, were immaterial.Three Months Ended March 31, 2024 2023 Cost of revenues $ 202 $ 192 Research and development 212 134 Selling, general and administrative 110 92 Total $ 524 $ 418 incomeeffective tax rate was 26% percent for the three months ended March 31, 2024, compared to 9% for the three months ended March 31, 2023. The increase in our effective tax rate is primarily due to the impact of releasing the valuation allowance on our U.S. deferred tax assets in the fourth quarter of 2023 and changes in the mix of our jurisdictional earnings.recognized from stock-based compensation arrangements in each of the periods presented were immaterial due to cumulative losses and valuation allowances.within twelve months cannot be made at this time.910 – Commitments and Contingencies2022.2023. As of March 31, 2023,2024, we expect to meet the requirements under these arrangements, as may be modified from time to time, based on our current and anticipated level of operations.Litigation Relating to the SolarCity AcquisitionBetween September 1, 2016 and October 5, 2016, seven lawsuits were filed in the Delaware Court of Chancery by purported stockholders of Tesla challenging our acquisition of SolarCity Corporation (“SolarCity”). Following consolidation, the lawsuit names as defendants the members of Tesla’s board of directors as then constituted and alleges, among other things, that board members breached their fiduciary duties in connection with the acquisition. The complaint asserts both derivative claims and direct claims on behalf of a purported class and seeks, among other relief, unspecified monetary damages, attorneys’ fees and costs. On January 22, 2020, all of the director defendants except Elon Musk reached a settlement to resolve the lawsuit against them for an amount to be paid entirely under the applicable insurance policy. The settlement, which does not involve an admission of any wrongdoing by any party, was approved by the Court on August 17, 2020. Tesla received payment of approximately $43 million on September 16, 2020, which has been recognized in our consolidated statements of operations as a reduction to Selling, general and administrative operating expenses for costs previously incurred related to the acquisition of SolarCity. The trial was held from July 12 to July 23, 2021 and on August 16, 2021. On October 22, 2021, the Court approved the parties’ joint stipulation that (a) the class is decertified and the action shall continue exclusively as a derivative action under Court of Chancery Rule 23.1 and (b) the direct claims against Elon Musk are dismissed with prejudice. Following post-trial briefing, post-trial argument was held on January 18, 2022.On April 27, 2022, the Court entered judgment in favor of Mr. Musk on all counts. On May 26, 2022, the plaintiff filed a notice of appeal. Oral argument was held before the Supreme Court of Delaware on March 29, 2023.These plaintiffs and others filed parallel actions in the U.S. District Court for the District of Delaware on or about April 21, 2017. They include claims for violations of the federal securities laws and breach of fiduciary duties by Tesla’s board of directors. Those actions have been consolidated and stayed pending the above-referenced Chancery Court litigation.172018. The complaint seeks, among other things, monetary damages and rescission or reformation of the stock-based compensation plan. On August 31, 2018 defendants filed a motion to dismiss the complaint; plaintiff filed its opposition brief on November 1, 2018; and defendants filed a reply brief on December 13, 2018. The hearing on the motion to dismiss was held on May 9, 2019. On September 20, 2019, the Court granted the motion to dismiss as to the corporate waste claim but denied the motion as to the breach of fiduciary duty and unjust enrichment claims. Defendants’ answer was filed on December 3, 2019.On January 25, 2021, the Court conditionally certified certain claims and a class of Tesla stockholders as a class action. On September 30, 2021, plaintiff filed a motion for leave to file a verified amended derivative complaint. On October 1, 2021, defendants Kimbal Musk and Steve Jurvetson moved for summary judgment as to the claims against them. Following the motion, plaintiff agreed to voluntarily dismiss the claims against Kimbal Musk and Steve Jurvetson. Plaintiff also moved for summary judgment on October 1, 2021. On October 27, 2021, the Court approved the parties’ joint stipulation that, among other things, (a) all claims against Kimbal Musk and Steve Jurvetson in the Complaint are dismissed with prejudice; (b) the class is decertified and the action shall continue exclusively as a derivative action under Court of Chancery Rule 23.1; and (c) the direct claims against the remaining defendants are dismissed with prejudice. On November 18, 2021, the remaining defendants (a) moved for partial summary judgment, (b) opposed plaintiff’s summary judgment motion and (c) opposed the plaintiff’s motion to amend his complaint. In January 2022, the case was assigned to a different judge. On February 24, 2022, the court (i) granted plaintiff’s motion to amend his complaint, and (ii) canceled oral argument on the summary judgment motions, stating that the court is “skeptical that this litigation can be resolved based on the undisputed facts” and the “case is going to trial,” but that the “parties may reassert their arguments made in support of summary judgment in their pre-trial and post-trial briefs.”(the “2018 CEO Performance Award”). Trial was held November 14-18, 2022. Post-trial briefing and argument are now complete. Trialcurrently set for November 27,approved by the Court, this action will be fully settled and dismissed with prejudice. Pursuant to the terms of the agreement, Tesla provided notice of the proposed settlement to stockholders of record as of July 14, 2023. The Court held a hearing regarding the settlement on October 13, 2023, after which it took the settlement and plaintiff counsels’ fee request under advisement. The settlement is not expected to December 1, 2023.opposed.entry of judgmentappeal in the above-referenced consolidated purported stockholder class action.5, 2023.18$162$162 million as the value of additional shares that it claims should have been delivered as a result of the adjustment to the strike price in 2018. On January 24, 2022, Tesla filed multiple counterclaims as part of its answer to the underlying lawsuit, asserting among other points that JP Morgan should have terminated the stock warrant agreement in 2018 rather than make an adjustment to the strike price that it should have known would lead to a commercially unreasonable result. Tesla believes that the adjustments made by JP Morgan were neither proper nor commercially reasonable, as required under the stock warrant agreements. JP Morgan filed a motion for judgment on the pleadings, which Tesla opposed, and that motion is currently pending before the Court., a jury in the Northern District of California returned a verdict against Tesla on claims by a former contingent worker that he was subjected to race discrimination while assigned to work at Tesla’s Fremont Factory from 2015-2016. On November 16, 2021, Tesla filed a post-trial motion for relief that included a request for a new trial or reduction of the jury’s damages. On April 13, 2022, the Court granted Tesla’s motion in part, reducing the total damages and conditionally denied the motion for a new trial subject to the plaintiff’s acceptance of the reduced award. On June 21, 2022, the plaintiff rejected the reduced award and, as a result, on June 27, 2022, the Court ordered a new trial on damages only, which commencedA retrial was held starting on March 27, 2023, after which a jury returned a verdict of $3,175,000.$3,175,000. As a result, the damages awarded against Tesla were reduced from an initial $136.9$136.9 million (October 4, 2021) down to $15$15 million (April 13, 2022), and then further down to $3.175$3.175 million (April 3, 2023). On November 2, 2023, the plaintiff filed a notice of appeal, and on November 16, 2023, Tesla filed a notice of cross appeal. In March 2024, the parties reached a confidential settlement resolving all claims in this matter.(”(“CRD,” formerly “DFEH”) filed a civil complaint against Tesla in Alameda County, California Superior Court, alleging systemic race discrimination, hostile work environment and pay equity claims, among others. CRD’s amended complaint seeks monetary damages and injunctive relief. On September 22, 2022, Tesla filed a cross complaint against CRD, alleging that it violated the Administrative Procedures Act by failing to follow statutory pre-requisites prior to filing suit and that cross complaint was subject to a sustained demurrer, which Tesla later amended and refiled. The case is nowcurrently in discovery.Tesla will engage in a mandatory mediation withOn September 28, 2023, the EEOC filed a civil complaint against Tesla in June 2023.case. Plaintiffscase and on September 15, 2023, the Court dismissed the action but granted plaintiffs leave to file an amended complaint. On November 2, 2023, plaintiff filed a responsean amended complaint purportedly on behalf of January 13,Tesla, against Elon Musk. On December 19, 2023, and the defendants repliedmoved to dismiss the amended complaint, which the Court granted on February 17, 2023.including proposed class actions, that seek monetary and other injunctive relief. These lawsuits include proposed class actions and other consumer claims that allege, among other things, purported defects and misrepresentations related to our products and services. For example, on September 14, 2022, a proposed class action was filed against Tesla, Inc. and related entities in the U.S. District Court for the Northern District of California, alleging various claims about the Company’s driver assistance technology systems under state and federal law. This case was later consolidated with several other proposed class actions, and a Consolidated Amended Complaint was filed on October 28, 2022, which seeks damages and other relief on behalf of all persons who purchased or leased from Tesla between January 1, 2016 to the present. On October 5, 2022, a proposed class action complaint was filed in the U.S. District Court for the Eastern District of New York asserting similar state and federal law claims against the same defendants. On September 30, 2023, the Court dismissed this action with leave to amend the complaint. On November 20, 2023, the plaintiff moved to amend the complaint, which Tesla opposed. On March 22, 2023, the plaintiffs in the Northern District of California consolidated action filed a motion for a preliminary injunction to order Tesla to (1) cease using the term “Full Self-Driving Capability” (FSDC)(FSD Capability), (2) cease the sale and activation of FSDCFSD Capability and deactivate FSDCFSD Capability on Tesla vehicles, and (3) provide certain notices to consumers about proposed court-findings about the accuracy of the use of the terms Autopilot and FSDC.19FSDCFSD Capability technologies and seeks money damages and other relief on behalf of persons who purchased Tesla stock between February 19, 2019 and February 17, 2023. An amended complaint was filed on September 5, 2023, naming only Tesla, Inc. and Elon Musk as defendants. On April 13,November 6, 2023, a putative Tesla shareholder filed a related shareholder derivative complaint againstmoved to dismiss the membersamended complaint.court.court and these cases have now all been consolidated. These complaints allege that Tesla violates federal antitrust and warranty laws through its repair, service, and maintenance practices and seeks, among other relief, damages for persons who paid Tesla for repairs services or Tesla compatible replacement parts from March 2019 to March 2023.SEC,Securities and Exchange Commission (“SEC”), the Department of Justice (“DOJ”), and various local, state, federal, and international agencies. The ongoing requests for information include topics such as operations, technology (e.g., vehicle functionality, Autopilot and FSD Capability), compliance, finance, data privacy, and other matters related to Tesla’s business, its personnel, and related parties. We routinely cooperate with such regulatory and governmental requests, including subpoenas, formal and informal requests for information, investigations, and other investigations and inquiries.For example, the SEC had issued subpoenas to Tesla in connection with Elon Musk’s prior statement that he was considering taking Tesla private. The take-private investigation was resolved and closed with a settlement entered into with the SEC in September 2018 and as further clarified in April 2019 in an amendment. The SEC also has periodically issued subpoenas to us seeking information on our governance processes around compliance with the SEC settlement, as amended.Separately, the company has received requests from the DOJ for documents related to Tesla’s Autopilot and FSD features. To our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred. We cannot predict the outcome or impact of any ongoing matters. Should the government decide to pursue an enforcement action, there exists the possibility of a material adverse impact on our business, results of operation, prospects, cash flows, and financial position.andor brand.201011 – Variable Interest Entity ArrangementsMarch 31,
2024December 31,
2023Assets Current assets Cash and cash equivalents $ 51 $ 66 Accounts receivable, net 17 13 Prepaid expenses and other current assets 345 361 Total current assets 413 440 Solar energy systems, net 2,587 3,278 Other non-current assets 334 369 Total assets $ 3,334 $ 4,087 Liabilities Current liabilities Accrued liabilities and other $ 29 $ 67 Deferred revenue 5 6 Current portion of debt and finance leases 1,905 1,564 Total current liabilities 1,939 1,637 Deferred revenue, net of current portion 86 99 Debt and finance leases, net of current portion 1,997 2,041 Total liabilities $ 4,022 $ 3,777 1112 – Segment Reporting and Information about Geographic AreasThree Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2024 2024 2024 Automotive segment Automotive segment Revenues Revenues Gross profit Gross profit Energy generation and storage segment Energy generation and storage segment Revenues Revenues Gross profit Gross profit Three Months Ended March 31, 2024 2023 United States $ 9,762 $ 11,247 China 4,592 4,891 Other international 6,947 7,191 Total $ 21,301 $ 23,329 21March 31,
2024December 31,
2023United States $ 28,274 $ 26,629 Germany 4,228 4,258 China 2,755 2,820 Other international 1,341 1,247 Total $ 36,598 $ 34,954 March 31,
2024December 31,
2023Automotive $ 13,587 $ 11,139 Energy generation and storage 2,446 2,487 Total $ 16,033 $ 13,626 artificial intelligence,AI, robotics and automation.2023,2024, we produced 440,808approximately 433,000 consumer vehicles and delivered 422,875approximately 387,000 consumer vehicles through the first quarter. We are currently focused on profitable growth, including by leveraging existing factories and production lines to introduce new and more affordable products, increasing vehicle production, utilized capacity and delivery capabilities, reducing costs, improving and developing our vehicles and battery technologies, vertically integrating and localizing our supply chain, further improving and deploying our FSD capabilities, increasing the affordability and efficiency ofincluding through our vehicles, bringing new products to marketplanned robotaxi product, and expanding our global infrastructure, including our service and charging infrastructure.2023,2024, we deployed 3.894.05 GWh of energy storage products and 67 megawatts of solar energy systems through the first quarter. We are currently focused on ramping the production and increasing the market penetration of our energy storage products, improving our Solar Roof installation capability and efficiency, and increasing market share of retrofit solar energy systems.2023,2024, we recognized total revenues of $23.33$21.30 billion, representing a decrease of $2.03 billion, compared to the prior year. During the three months ended March 31, 2024, our net income attributable to common stockholders was $1.13 billion, representing an increaseunfavorable change of $4.57$1.38 billion, compared to the same period in the prior year. We continue to ramp production and build newand optimize our manufacturing capacity, and expand our operations while focusing on further cost reductions and operational efficiencies to enable increased deliveries and deployments of our products, and invest in research and development to accelerate our AI, software, and fleet-based profits for further revenue growth.During the three months ended March 31, 2023, our net income attributable to common stockholders was $2.51 billion, representing an unfavorable change of $805 million, compared to the prior year. We continue to focus on improving our profitability through production and operational efficiencies.20232024 with $22.40$26.86 billion in cash and cash equivalents and investments, representing an increasea decrease of $217 million$2.23 billion from the end of 2022.2023. Our cash flows provided by operating activities during the three months ended March 31, 2024 and 2023 were $242 million and 2022 were $2.51 billion and $4.00 billion, respectively, representing a decrease of $1.48$2.27 billion. Capital expenditures amounted to $2.07$2.77 billion during the three months ended March 31, 2023,2024, compared to $1.77$2.07 billion during the same period ended March 31, 2022. Sustained2023, representing an increase of $701 million. Overall growth has allowed our business to generally fund itself, and we will continue investing in a number of capital-intensive projects and research and development in upcoming periods.20232024 OutlookActive ToolingTBDVariousNext Generation Platform Tesla RoadsterRoadster Robotaxi & Othersramping allcapacity for manufacturing new vehicle models such as our Cybertruck and future vehicles utilizing aspects of our next generation platform, and ramping the production vehiclesat our Gigafactories to their installed production capacities as well as increasing production rate efficiency and capacityefficiency at our current factories. The next phase of production growth will depend on the continued ramp at Gigafactory Berlin-Brandenburgour factories and Gigafactory Texas,be initiated by advances in autonomy and the introduction of new products, including those built on our next generation vehicle platform, as well as our ability to add to our available sources of battery cell supply by manufacturing our own cells that we are developing to have high-volume output, lower capital and production costs and longer range. Our goals are to improve vehicle performance, decrease production costs and increase affordability and customer awareness.23However, thesethe new product and manufacturing technologies we are introducing,introduce, the number of concurrent international projects, any industry-wide component constraints, labor shortages and any future impact from events outside of our control such ascontrol. For example, during the COVID-19 pandemic.first quarter of 2024, we experienced a sequential decline in production volumes partially caused by the early phase of the production ramp of the updated Model 3 at our Fremont factory, and factory shutdowns at Gigafactory Berlin-Brandenburg resulting from shipping diversions caused by the Red Sea conflict and an arson attack. Moreover, we have set ambitious technological targets with our plans for battery cells as well as for iterative manufacturing and design improvements for our vehicles with each new factory.for example, have allowed us to competitively price our vehicles. We will also continue to generate demand and brand awareness by improving our vehicles’ performance and functionality, including through productsproduct offerings and features based on artificial intelligence such as Autopilot, and FSD (Supervised), and other software, features, and delivering new vehicles, such as our upcoming Cybertruck. In addition, we have been increasing awareness, and expanding our vehicle financing programs, including attractive leasing terms for our customers. Moreover, we expect to continue to benefit from ongoing electrification of the automotive sector and increasing environmental awareness.increases in interest ratesrate fluctuations and the liquidity of enterprise customers. For example, inflationary pressures have increased across the markets in which we operate. In an effort to curb this trend, central banks in developed countries raised interest rates rapidly and substantially, impacting the affordability of vehicle lease and finance arrangements. Further, sales of vehicles in the automotive industry also tend to be cyclical in many markets, which may expose us to increased volatility as we expand and adjust our operations. Moreover, as additional competitors enter the marketplace and help bring the world closer to sustainable transportation, we will have to adjust and continue to execute well to maintain our momentum. Additionally, our suppliers’ liquidity and allocation plans may be affected by current challenges in the North American automotive industry, which could reduce our access to components or result in unfavorable changes to cost. These macroeconomic and industry trends have had, and will likely continue to have, an impact on the pricing of, and order rate for our vehicles, and in turn our operating margin. Changes in government and economic incentives in relation to electric vehicles may also impact our sales. We will continue to adjust accordingly to such developments, and we believe our ongoing cost reduction, including improved production innovation and efficiency at our newest factories and lower logistics costs, and focus on operating leverage will continue to benefit us in relation to our competitors.increasingcontinued enhancements of the capability and efficiency of our servicing operations.increasing margins through greater volumes.incremental volume growth. We continue to increase the production of our energy storage products to meet high levels of demand, including the announcementconstruction of a new Megafactory in Shanghai.Shanghai and the ongoing ramp at our Megafactory in Lathrop, California. For Megapack, energy storage deployments can vary meaningfully quarter to quarter depending on the timing of specific project milestones. For Powerwall, better availability and growing grid stability concerns drive higher customer interest. We remain committed to growing our retrofit solar energy business by offering a low-cost and simplified online ordering experience. In addition, we continue to seek to improve our installation capabilities and price efficiencies for Solar Roof. As these product lines grow, we will have to maintain adequate battery cell supply for our energy storage products and hire additional personnel, particularly skilled electricians, to support the ramp of Solar Roof.24$7.00$8.00 to $9.00$10.00 billion in 2023 and in each of the following two fiscal years.recentlygenerally been consistently generating cash flow from operations in excess of our level of capital spend, and with better working capital management resulting in shorter days sales outstanding than days payable outstanding, our sales growth is also generally facilitating positive cash generation. We have and will continue to utilize such cash flows, among other things, to do more vertical integration, expand our product roadmap, invest in autonomy and provide financing options to our customers. OnAt the other hand,same time, we are likely to see heightened levels of capital expenditures during certain periods depending on the specific pace of our capital-intensive projects and other potential variables such as rising material prices and increasingincreases in supply chain and labor expenses resulting from changes in global trade conditions and labor availability associated with the COVID-19 pandemic.availability. Overall, we expect our ability to be self-funding to continue as long as macroeconomic factors support current trends in our sales.2022.2023. There have been no material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for the year ended December 31, 2022.2023. Three Months Ended March 31, Change (Dollars in millions) 2024 2023 $ % Automotive sales $ 16,460 $ 18,878 $ (2,418) (13) % Automotive regulatory credits 442 521 (79) (15) % Automotive leasing 476 564 (88) (16) % Total automotive revenues 17,378 19,963 (2,585) (13) % Services and other 2,288 1,837 451 25 % Total automotive & services and other segment revenue 19,666 21,800 (2,134) (10) % Energy generation and storage segment revenue 1,635 1,529 106 7 % Total revenues $ 21,301 $ 23,329 $ (2,028) (9) % Revenues
March 31,
segment revenue25increased $3.36decreased $2.42 billion, or 22%13%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022,2023, primarily due to an increase of 108,378 combined Model 3 and Model Y deliveries year over year despite a negative impact from the United States dollar strengthening against other foreign currencies in the three months ended March 31, 2023 as compared to the prior period. This was achieved from production ramping of Model Y at Gigafactory Shanghai, Gigafactory Berlin-Brandenburg, Gigafactory Texas and the Fremont Factory. This increase was partially offset by lower average selling price on our vehicles driven by overall price reductions year over year. ThereAdditionally, there was also a decrease of 2,630approximately 27,000 combined Model S3 and Model XY cash deliveries year over year.$158$79 million, or 23%15%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022. We recognized $288 million in revenue in the first quarter of 2022 primarily due to changes in regulation which entitled us to additional consideration for credits sold previously, in the absence of which we had an increase in automotive regulatory credits revenue year over year. This increase was primarily due to the increase in volume as well as the regional mix of the credits sold.$104$88 million, or 16%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022.2023. The change isdecrease was primarily due to a decrease in direct sales-type leasing revenue driven by lower deliveries year over year. This was partially offset by an increase from the growing portfolio of our direct operating lease program.$558$451 million, or 44%25%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022.2023. The change isincrease was primarily due to an increaseincreases in non-warranty maintenance services and collision revenue, insurance services revenue, paid Supercharging revenue and part sales revenue. Additionally, there was higher used vehicle revenue driven by increases in volume partially offset by decreasesa decrease in average selling price of used Tesla and non-Tesla vehicles, non-warranty maintenance services revenue as our fleet continues to grow, paid Supercharging revenue, insurance services revenue and retail merchandise revenue.$913$106 million, or 148%7%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022,2023. The increase was primarily due to an increase in deployments of Megapack, higher solar cash and loan deployments at a higher average selling price as well as increaseof Megapack partially offset by a decrease in deployments of Powerwall at a higher average selling price, year over year.Three Months Ended March 31, Change (Dollars in millions) 2024 2023 $ % Cost of revenues Automotive sales $ 13,897 $ 15,422 $ (1,525) (10) % Automotive leasing 269 333 (64) (19) % Total automotive cost of revenues 14,166 15,755 (1,589) (10) % Services and other 2,207 1,702 505 30 % Total automotive & services and other segment cost of revenues 16,373 17,457 (1,084) (6) % Energy generation and storage segment 1,232 1,361 (129) (9) % Total cost of revenues $ 17,605 $ 18,818 $ (1,213) (6) % Gross profit total automotive $ 3,212 $ 4,208 Gross margin total automotive 18.5 % 21.1 % Gross profit total automotive & services and other segment $ 3,293 $ 4,343 Gross margin total automotive & services and other segment 16.7 % 19.9 % Gross profit energy generation and storage segment $ 403 $ 168 Gross margin energy generation and storage segment 24.6 % 11.0 % Total gross profit $ 3,696 $ 4,511 Total gross margin 17.4 % 19.3 %
March 31,
segment cost of revenues
segment
segment26increased $4.51decreased $1.53 billion, or 41%10%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022,2023. Cost of automotive sales revenue decreased due to a decrease in line with the growth in deliveries year over year, as discussed above. Further, the average combined cost per unit of our vehicles increasedprimarily from lower raw material costs, freight and duties in addition to the changes in deliveries year over year due to increasing prices of raw materials, manufacturing, logisticsas discussed. Additionally, there were higher costs for Cybertruck and warranty costs. These costs were partially offset by manufacturing credits earnedthe updated Model 3 at our Fremont factory as parta result of the IRA during the three months ended March 31, 2023. There were also idletemporary under-utilization of manufacturing capacity charges primarily related to the ramping up ofas production in Gigafactory Texas and our proprietary battery cells manufacturing during the three months ended March 31, 2023. We had also incurred costs related to the ramp up of production in Gigafactory Berlin-Brandenburg during the three months ended March 31, 2022. These increases in costs of revenue were positively impacted by the United States dollar strengthening against other foreign currencies in the three months ended March 31, 2023 as compared to the prior period.$75$64 million, or 18%19%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022,2023. The decrease was primarily due to a decrease in direct sales-type leasing cost of revenue driven by lower deliveries year over year. This was partially offset by an increase in cost of revenue from the growing portfolio of our direct operating lease program.$416$505 million, or 32%30%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022.2023. The change is primarily due to an increase was generally in used vehicle cost of revenue driven by increasesline with the changes in volume offset by a decrease in costs of used Tesla and non-Tesla vehicle sales, an increase in non-warranty maintenance service cost of revenue, and an increase in costs of paid Supercharging, insurance services and retail merchandise.32.9%21.1% to 21.1%18.5% in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022. This2023. The decrease was driven by the changes in automotive sales revenue and cost of automotive sales revenue as well as a decrease in regulatory credits revenue, as discussed earlier.30.5%19.9% to 19.9%16.7% in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022,2023, primarily due to the automotive gross margin decrease discussed above, partially offset by an improvement in our services and other gross margin. Additionally, services and other was a higher percentage of the segment gross margin during the first quarter of 2023 as compared to the prior year.increased $673decreased $129 million, or 98%9%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022, primarily2023. The decrease was due to an increase in deployments of Megapack, increase in solar cash and loan deployments at a higher average cost due to increased component costs, as well as increase in deployments of Powerwall.improvedincreased from -11.7%11.0% to 11.0%24.6% in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022. This2023. The increase was driven by the growthchanges in energy generation and storage revenue and cost of energy generation and storage revenue as discussed above. Additionally, there was a higher proportion of energy storage sales, which operated at a higher gross margin, within the segment.27
March 31,Three Months Ended March 31, Change (Dollars in millions) 2024 2023 $ % Research and development $ 1,151 $ 771 $ 380 49 % As a percentage of revenues 5 % 3 % decreased $94increased $380 million, or 11%49%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022.2023. The overall decreaseincrease was primarily driven by additional costs year over year related to AI, advancement of our proprietary battery cell technologies and other programs.2022 as compared to the current period, as we were in the pre-production phase at Gigafactory Texas and started production at Gigafactory Berlin-Brandenburg only closer to the end of the first quarter of 2022.R&D expenses as a percentage of revenue decreased from 5% to 3% in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022. Our R&D expenses have decreased2023 as a proportion of total revenues despite expandingwe continue to expand our product roadmap and technologies.Three Months Ended March 31, Change (Dollars in millions) 2024 2023 $ % Selling, general and administrative $ 1,374 $ 1,076 $ 298 28 % As a percentage of revenues 6 % 5 %
March 31,$84$298 million, or 8%28%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022.2023. This was driven by a $84 million increase in facilities-related expenses and a $49$176 million increase in employee and labor costs primarily from increased headcount, including professional services. These increases were offset byservices, a decrease of $52$62 million increase in stock-based compensation expense, most of which is attributable to the lower stock-based compensation expense of $48facilities related expenses and a $41 million on the 2018 CEO Performance Award which was fully expensed as of December 31, 2022.
March 31,Three Months Ended March 31, Change (Dollars in millions) 2024 2023 $ % Interest income $ 350 $ 213 $ 137 64 % $185$137 million, or 661%64%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022.2023. This increase was primarily due to higher interest earned on our cash and cash equivalents and short-term investments duringin the three months ended March 31, 20232024 as compared to the prior period. This was driven by an increase in our short-term investments balance andperiod due to rising interest rates.(Expense) Income (Expense), Net
March 31,Three Months Ended March 31, Change (Dollars in millions) 2024 2023 $ % Other income (expense), net $ 108 $ (48) $ 156 Not meaningful income,, net, changed unfavorablyfavorably by $104$156 million in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022.2023. The favorable change iswas primarily due to fluctuations in foreign currency exchange rates.28
March 31,Three Months Ended March 31, Change (Dollars in millions) 2024 2023 $ % Provision for income taxes $ 409 $ 261 $ 148 57% Effective tax rate 26 % 9 % decreasedincreased by $85$148 million or 25%, in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022, primarily due to the change in our pre-tax income year over year.decreasedincreased from 10%9% to 9%26% in the three months ended March 31, 20232024 as compared to the three months ended March 31, 2022,prior period. These increases are primarily due to the impact of releasing the valuation allowance on our U.S. deferred tax assets in the fourth quarter of 2023 and changes in mix of jurisdictional earnings.1,9, Summary of Significant Accounting PoliciesIncome Taxes, to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details.fourfive fiscal years. The cash we generate from our core operations enables us to fund ongoing operations and production, our research and development projects for new products and technologies including our proprietary battery cells, additional manufacturing ramps at existing manufacturing facilities, such as the Fremont Factory, Gigafactory Nevada, Gigafactory Shanghai and Gigafactory New York, the ramp of Gigafactory Berlin-Brandenburg and Gigafactory Texas, the construction of future factories, and the continued expansion of our retail and service locations, body shops, Mobile Service fleet, Supercharger, network,including to support NACS, energy product installation capabilities and autonomy and other artificial intelligence enabled products.2023,2024, as well as in the long-term.20232024 Outlook—Cash Flow and Capital Expenditure Trends in this Quarterly Report on Form 10-Q, we currently expect our capital expenditures to support our projects globally to exceed $10.00 billion in 2024 and be between $7.00$8.00 to $9.00$10.00 billion in 2023 and in each of the following two fiscal years. We also have certain obligations in connection with our operations at Gigafactory New York and Gigafactory Shanghai, as outlined in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Material Cash Requirements in our Annual Report on Form 10-K for the year ended December 31, 2022.2023.2023,2024, we and our subsidiaries had outstanding $1.77$4.90 billion in aggregate principal amount of indebtedness, of which $939 million$2.14 billion is scheduled to become due in the succeeding 12 months. For details regarding our indebtedness, refer to Note 7, Debt, to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.29 solar energy systems, proceeds from debt facilities and proceeds from equity offerings, when applicable.2023,2024, we had $16.05$11.81 billion and $6.35$15.06 billion of cash and cash equivalents and short-term investments, respectively. Balances held in foreign currencies had a U.S. dollar equivalent of $4.26$3.47 billion and consisted primarily of Chinese yuan euros and Canadian dollar.euros. We had $5.16$5.00 billion of unused committed amounts under our credit facilitiesamounts as of March 31, 2023. Certain of such unused committed amounts are subject to satisfying specified conditions prior to draw-down (such as pledging to leased vehicles and our interests in those leases).2024. For details regarding our indebtedness, refer to Note 7,, Debt, to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
March 31, Three Months Ended March 31, (Dollars in millions) 2024 2023 Net cash provided by operating activities $ 242 $ 2,513 Net cash used in investing activities $ (5,084) $ (2,484) Net cash provided by (used in) financing activities $ 196 $ (233) $1.48$2.27 billion to $242 million during the three months ended March 31, 2024 from $2.51 billion during the three months ended March 31, 2023 from $4.00 billion during the three months ended March 31, 2022.2023. This decrease was primarily due to the overall increaseunfavorable changes in net operating assets and liabilities of $928 million$1.19 billion and the decrease in net income excluding non-cash expenses, gains and losses of $554 million.The increase in our net operating assets and liabilities was mainly driven by a larger increase of inventory in the three months ended March 31, 2023 as compared to the three months ended March 31, 2022.and $1.77 billion for the three months ended March 31, 2022, mainly for the expansions of Gigafactory Texas, the Fremont Factory, Gigafactory Berlin-Brandenburg,global factory expansion, machinery and Gigafactory Shanghai.equipment and AI related capital expenditures as we expand or enhance our product roadmap. We also purchased $2.31 billion and $411 million and $386 million of short-term investments, net of proceeds from maturities, for the three months ended March 31, 2024 and 2023, and March 31, 2022, respectively.used infrom financing activities decreasedchanged by $1.68 billion$429 million to $233$196 million net cash provided by financing activities during the three months ended March 31, 20232024 from $1.91 billion$233 million net cash used in financing activities during the three months ended March 31, 2022.2023. The decreasechange was primarily due to a $1.64 billion decrease$776 million increase in proceeds from issuances of debt, partially offset by a $289 million increase in repayments of convertibledebt and other debt.a $94 million increase in payments for buy-outs of noncontrolling interests in subsidiaries. See Note 7, Debt, to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details regarding our debt obligations. and localized subsidiary debt denominated in currencies other than the U.S. dollar (primarily the Chinese yuan euro, Australian dollar and Canadian dollareuro in relation to our current year operations). In general, we are a net receiver of currencies other than the U.S. dollar for our foreign subsidiaries. Accordingly, changes in exchange rates affect our revenue and other operating results as expressed in U.S. dollars as we do not typically hedge foreign currency risk.$435$431 million at March 31, 20232024 and $473 million$1.01 billion at December 31, 2022,2023, assuming no foreign currency hedging.2023,2024, our disclosure controls and procedures were designed at a reasonable assurance level and were effective to provide reasonable assurance that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.2023,2024, which has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.9,10, Commitments and Contingencies, to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.pursuantwith respect to Cal. Health & Saf. Code section 25100 et seq. and Cal. Civil Code § 1798.80. Tesla has implemented various remedial measures, including conducting training and audits, and enhancements to its siteour waste management programs. While the outcomeactivities and payment of this matter cannot be determined at this time, it is not currently expected to have a material adverse impact on our business.approximately $1.5 million in civil penalties and fees.2022,2023, which could adversely affect our business, financial conditions and future results.None.Table of Contents32
Number
HerewithNumberHerewith31.1 21, 2023Zachary J. KirkhornVaibhav TanejaVaibhav Taneja Zachary J. Kirkhorn
Duly Authorized Officer)34