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CASE ANALYSIS: 1) What is your assessment of Tesla's financial performance as shown in case Exhibit 1 below? Explain in detail
EXHIBIT 1 Consolidated Statement of Operations, Tesla Motors, 2010-2013 (in thousands, except share and per share data)
| | Fiscal Year Ending December 31 | |
| 2013 | 2012 | 2011 | 2010 |
| Income statement data | $ 1,952,684 | $ 354,344 | $ 101,748 | $ 75,459 |
| Revenues: |
| Sales of vehicles, options and accessories, |
| vehicle service, and regulatory credits |
| Sales of powertrain components, battery packs, | | | | |
| and drive units to other vehicle manufacturers | 45,102 | 31,355 | 46,860 | 21,619 |
| Development of powertrain components and | | | | |
| systems for other vehicle manufacturers | 15,710 | 27,557 | 55,674 | 19,666 |
| Total revenues | 2,013,496 | 413,256 | 204,242 | 116,744 |
| Cost of revenues: | | | | |
| Vehicle sales and sales of powertrain components | | | | |
| and related systems to other manufacturers | 1,543,878 | 371,658 | 115,482 | 79,982 |
| Development of powertrain systems and | | | | |
| components for other vehicle manufacturers | 13,356 | 11,531 | 27,165 | 6,031 |
| Total cost of revenues | 1,557,234 | 383,189 | 142,647 | 86,013 |
| Gross proft (loss) | 456,262 | 30,067 | 61,595 | 30,731 |
| Operating expenses: | | | | |
| Research and development | 231,976 | 273,978 | 208,981 | 92,996 |
| Selling, general, and administrative | 285,569 | 150,372 | 104,102 | 84,573 |
| Total operating expenses | 517,545 | 424,350 | 313,083 | 177,569 |
| Loss from operations | (961,283) | (394,283) | (251,488) | (146,838) |
| Interest income | 189 | 288 | 255 | 258 |
| Interest expense | (32,934) | (254) | (43) | (992) |
| Other income (expense), net | 22,602 | (1,828) | (2,646) | (6,583) |
| Loss before income taxes | (71,426) | (396,077) | (253,922) | (154,155) |
| Provision for income taxes | 2,588 | 136 | 489 | 173 |
| Net loss | $ (74,014) | $ (396,213) | $(254,411) | $ (154,328) |
| Net loss per share of common stock, basic and | | | | |
| diluted | $(0.62) | $(3.69) | $(2.53) | $(3.04) |
| Weighted-average shares used in computing net | | | | |
| loss per share of common stock, basic and diluted | 119,421,414 | 107,349,188 | 100,388,815 | 50,718,302 |
| Balance sheet data | | | | |
| Cash and cash equivalents | $ 845,889 | $ 201,890 | $255,266 | $ 99,558 |
| Inventory | 340,355 | 268,504 | 50,082 | 45,182 |
| Total current assets | 1,265,939 | 524,768 | 372,838 | 235,886 |
| Property, plant, and equipment, net | 738,494 | 552,229 | 298,414 | 114,636 |
| Total assets | 2,416,930 | 1,114,190 | 713,448 | 386,082 |
| Total current liabilities | 675,160 | 539,108 | 191,339 | 85,565 |
| Long-term debt, less current portion | | 401,495 | 268,335 | 71,828 |
| Total stockholders equity | 667,121 | 124,700 | 224,045 | 207,048 |
(Continued )
C-252 PART 2 Cases in Crafting and Executing Strategy
EXHIBIT 1 (Continued)
| | Fiscal Year Ending December 31 | |
| 2013 | 2012 | 2011 | 2010 |
| Cash low data | $257,994 | $(266,081) | $(128,034) | ($127,817) |
| Cash fows from operating activities |
| Proceeds from issuance of common stock in public | | | | |
| offerings | 360,000 | 221,496 | 172,410 | 188,842 |
| Purchases of property and equipment excluding | | | | |
| capital leases | (264,224) | (239,228) | (184,226) | (40,203) |
| Net cash used in investing activities | (249,417) | (206,930) | (162,258) | (180,297) |
| Net cash provided by inancing activities | 635,422 | 419,635 | 446,000 | 338,045 |
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