《特斯拉(TESLA)2024年第一季度财报(英文版)(40页).pdf》由会员分享,可在线阅读,更多相关《特斯拉(TESLA)2024年第一季度财报(英文版)(40页).pdf(40页珍藏版)》请在三个皮匠报告上搜索。
1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Mark One)xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF1934For the quarterly period ended March 31,2024ORoTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT O
2、F1934For the transition period from _ to _Commission File Number:001-34756Tesla,Inc.(Exact name of registrant as specified in its charter)Delaware91-2197729(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification No.)1 Tesla RoadAustin,Texas78725(Address of principa
3、l executive offices)(Zip Code)(512)516-8177(Registrants telephone number,including area code)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon stockTSLAThe Nasdaq Global Select MarketIndicate by check mark wh
4、ether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the SecuritiesExchange Act of 1934(“Exchange Act”)during the preceding 12 months(or for such shorter period that the registrant was required to file suchreports),and(2)has been subject to such filing requireme
5、nts for the past 90 days.Yes x No oIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submittedpursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registra
6、ntwas required to submit such files).Yes x No oIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reportingcompany,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller
7、 reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act:Large accelerated filerxAccelerated fileroNon-accelerated fileroSmaller reporting companyoEmerging growth companyoIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extende
8、d transition period forcomplying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.oIndicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes o No xAs of April 18,2024,there were 3,189
9、,196,167 shares of the registrants common stock outstanding.TESLA,INC.FORM 10-Q FOR THE QUARTER ENDED MARCH 31,2024INDEX PagePART I.FINANCIAL INFORMATIONItem 1.Financial Statements4Consolidated Balance Sheets4Consolidated Statements of Operations5Consolidated Statements of Comprehensive Income6Conso
10、lidated Statements of Redeemable Noncontrolling Interests and Equity7Consolidated Statements of Cash Flows8Notes to Consolidated Financial Statements9Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations25Item 3.Quantitative and Qualitative Disclosures about Mar
11、ket Risk33Item 4.Controls and Procedures33PART II.OTHER INFORMATIONItem 1.Legal Proceedings34Item 1A.Risk Factors34Item 2.Unregistered Sales of Equity Securities and Use of Proceeds34Item 3.Defaults Upon Senior Securities34Item 4.Mine Safety Disclosures34Item 5.Other Information34Item 6.Exhibits35 S
12、ignatures361Table of ContentsForward-Looking StatementsThe discussions in this Quarterly Report on Form 10-Q contain forward-looking statements reflecting our current expectationsthat involve risks and uncertainties.These forward-looking statements include,but are not limited to,statements concernin
13、g supplychain constraints,our strategy,competition,future operations and production capacity,future financial position,future revenues,projected costs,profitability,expected cost reductions,capital adequacy,expectations regarding demand and acceptance for ourtechnologies,growth opportunities and tre
14、nds in the markets in which we operate,prospects and plans and objectives ofmanagement.The words“anticipates,”“believes,”“could,”“estimates,”“expects,”“intends,”“may,”“plans,”“projects,”“will,”“would”and similar expressions are intended to identify forward-looking statements,although not all forward
15、-lookingstatements contain these identifying words.We may not actually achieve the plans,intentions or expectations disclosed in ourforward-looking statements and you should not place undue reliance on our forward-looking statements.Actual results or eventscould differ materially from the plans,inte
16、ntions and expectations disclosed in the forward-looking statements that we make.Theseforward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in theforward-looking statements,including,without limitation,the risks set forth in Pa
17、rt I,Item 1A,“Risk Factors”of the AnnualReport on Form 10-K for the fiscal year ended December 31,2023 and that are otherwise described or updated from time to timein our other filings with the Securities and Exchange Commission(the“SEC”).The discussion of such risks is not an indicationthat any suc
18、h risks have occurred at the time of this filing.We do not assume any obligation to update any forward-lookingstatements.Table of ContentsPART I.FINANCIAL INFORMATIONITEM 1.FINANCIAL STATEMENTSTesla,Inc.Consolidated Balance Sheets(in millions,except per share data)(unaudited)March 31,2024December 31
19、,2023AssetsCurrent assetsCash and cash equivalents$11,805$16,398 Short-term investments15,058 12,696 Accounts receivable,net3,887 3,508 Inventory16,033 13,626 Prepaid expenses and other current assets3,752 3,388 Total current assets50,535 49,616 Operating lease vehicles,net5,736 5,989 Solar energy s
20、ystems,net5,162 5,229 Property,plant and equipment,net31,436 29,725 Operating lease right-of-use assets4,367 4,180 Digital assets,net184 184 Intangible assets,net171 178 Goodwill250 253 Deferred tax assets6,769 6,733 Other non-current assets4,616 4,531 Total assets$109,226$106,618 LiabilitiesCurrent
21、 liabilitiesAccounts payable$14,725$14,431 Accrued liabilities and other9,243 9,080 Deferred revenue3,024 2,864 Current portion of debt and finance leases2,461 2,373 Total current liabilities29,453 28,748 Debt and finance leases,net of current portion2,899 2,857 Deferred revenue,net of current porti
22、on3,214 3,251 Other long-term liabilities8,480 8,153 Total liabilities44,046 43,009 Commitments and contingencies(Note 10)Redeemable noncontrolling interests in subsidiaries73 242 EquityStockholders equityPreferred stock;$0.001 par value;100 shares authorized;no shares issued and outstanding Common
23、stock;$0.001 par value;6,000 shares authorized;3,189 and 3,185 shares issued andoutstanding as of March 31,2024 and December 31,2023,respectively3 3 Additional paid-in capital35,763 34,892 Accumulated other comprehensive loss(399)(143)Retained earnings29,011 27,882 Total stockholders equity64,378 62
24、,634 Noncontrolling interests in subsidiaries729 733 Total liabilities and equity$109,226$106,618 The accompanying notes are an integral part of these consolidated financial statements.4Table of ContentsTesla,Inc.Consolidated Statements of Operations(in millions,except per share data)(unaudited)Thre
25、e Months Ended March 31,20242023RevenuesAutomotive sales$16,460$18,878 Automotive regulatory credits442 521 Automotive leasing476 564 Total automotive revenues17,378 19,963 Energy generation and storage1,635 1,529 Services and other2,288 1,837 Total revenues21,301 23,329 Cost of revenuesAutomotive s
26、ales13,897 15,422 Automotive leasing269 333 Total automotive cost of revenues14,166 15,755 Energy generation and storage1,232 1,361 Services and other2,207 1,702 Total cost of revenues17,605 18,818 Gross profit3,696 4,511 Operating expensesResearch and development1,151 771 Selling,general and admini
27、strative1,374 1,076 Total operating expenses2,525 1,847 Income from operations1,171 2,664 Interest income350 213 Interest expense(76)(29)Other income(expense),net108(48)Income before income taxes1,553 2,800 Provision for income taxes409 261 Net income1,144 2,539 Net income attributable to noncontrol
28、ling interests and redeemable noncontrolling interests insubsidiaries15 26 Net income attributable to common stockholders$1,129$2,513 Net income per share of common stock attributable to common stockholdersBasic$0.37$0.80 Diluted$0.34$0.73 Weighted average shares used in computing net income per sha
29、re of common stockBasic3,1863,166Diluted3,4843,468The accompanying notes are an integral part of these consolidated financial statements.5Table of ContentsTesla,Inc.Consolidated Statements of Comprehensive Income(in millions)(unaudited)Three Months Ended March 31,20242023Net income$1,144$2,539 Other
30、 comprehensive(loss)income:Foreign currency translation adjustment(252)130 Unrealized net(loss)gain on investments,net of tax(4)6 Comprehensive income888 2,675 Less:Comprehensive income attributable to noncontrolling interests and redeemablenoncontrolling interests in subsidiaries15 26 Comprehensive
31、 income attributable to common stockholders$873$2,649 The accompanying notes are an integral part of these consolidated financial statements.6Table of ContentsTesla,Inc.Consolidated Statements of Redeemable Noncontrolling Interests and Equity(in millions)(unaudited)Three MonthsEnded March31,2024Rede
32、emableNoncontrollingInterestsCommon StockAdditionalPaid-InCapitalAccumulatedOtherComprehensiveLossRetainedEarningsTotalStockholdersEquityNoncontrollingInterests inSubsidiariesTotalEquitySharesAmountBalance as ofDecember 31,2023$242 3,185$3$34,892$(143)$27,882$62,634$733$63,367 Issuance ofcommon stoc
33、kfor equityincentiveawards 4 251 251 251 Stock-basedcompensation 578 578 578 Distributions tononcontrollinginterests(6)(16)(16)Buy-outs ofnoncontrollinginterests(166)42 42 42 Net income3 1,129 1,129 12 1,141 Othercomprehensiveloss (256)(256)(256)Balance as ofMarch 31,2024$73 3,189$3$35,763$(399)$29,
34、011$64,378$729$65,107 Three MonthsEnded March31,2023RedeemableNoncontrollingInterestsCommon StockAdditionalPaid-InCapitalAccumulatedOtherComprehensiveLossRetainedEarningsTotalStockholdersEquityNoncontrollingInterests inSubsidiariesTotalEquitySharesAmountBalance as ofDecember 31,2022$409 3,164$3$32,1
35、77$(361)$12,885$44,704$785$45,489 Issuance ofcommon stockfor equityincentiveawards 5 231 231 231 Stock-basedcompensation 465 465 465 Distributions tononcontrollinginterests(5)(22)(22)Buy-outs ofnoncontrollinginterests 5 5(12)(7)Net income3 2,513 2,513 23 2,536 Othercomprehensiveincome 136 136 136 Ba
36、lance as ofMarch 31,2023$407 3,169$3$32,878$(225)$15,398$48,054$774$48,828 The accompanying notes are an integral part of these consolidated financial statements.7Table of ContentsTesla,Inc.Consolidated Statements of Cash Flows(in millions)(unaudited)Three Months Ended March 31,20242023Cash Flows fr
37、om Operating ActivitiesNet income$1,144$2,539 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation,amortization and impairment1,246 1,046 Stock-based compensation524 418 Inventory and purchase commitments write-downs68 50 Foreign currency transaction net unre
38、alized 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 an
39、d other liabilities1,247 1,403 Deferred revenue195 106 Net cash provided by operating activities242 2,513 Cash Flows from Investing ActivitiesPurchases 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 invest
40、ments(6,622)(2,015)Proceeds from maturities of investments4,315 1,604 Net cash used in investing activities(5,084)(2,484)Cash Flows from Financing ActivitiesProceeds from issuances of debt776 Repayments of debt(591)(302)Proceeds from exercises of stock options and other stock issuances251 231 Princi
41、pal 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 activities196(233)Effect of exchange rate changes on
42、 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 period17,189 16,924 Cash and cash equivalents and restricted cash,end of period$12,464$16,770 Supplemental Non-Cash
43、 Investing and Financing ActivitiesAcquisitions 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 The accompanying notes are an integral part of
44、these consolidated financial statements.8Table of ContentsTesla,Inc.Notes to Consolidated Financial Statements(unaudited)Note 1 Summary of Significant Accounting PoliciesUnaudited Interim Financial StatementsThe consolidated financial statements of Tesla,Inc.(“Tesla”,the“Company”,“we”,“us”or“our”),i
45、ncluding theconsolidated balance sheet as of March 31,2024,the consolidated statements of operations,the consolidated statements ofcomprehensive income,the consolidated statements of redeemable noncontrolling interests and equity,and the consolidatedstatements of cash flows for the three months ende
46、d March 31,2024 and 2023,as well as other information disclosed in theaccompanying notes,are unaudited.The consolidated balance sheet as of December 31,2023 was derived from the auditedconsolidated financial statements as of that date.The interim consolidated financial statements and the accompanyin
47、g notes shouldbe read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our AnnualReport on Form 10-K for the year ended December 31,2023.The interim consolidated financial statements and the accompanying notes have been prepared on the same bas
48、is as theannual consolidated financial statements and,in the opinion of management,reflect all adjustments,which include only normalrecurring adjustments,necessary for a fair statement of the results of operations for the periods presented.The consolidated resultsof operations for any interim period
49、 are not necessarily indicative of the results to be expected for the full year or for any otherfuture years or interim periods.ReclassificationsCertain prior period balances have been reclassified to conform to the current period presentation in the consolidatedfinancial statements and the accompan
50、ying notes.Revenue RecognitionRevenue by sourceThe following table disaggregates our revenue by major source(in millions):Three Months Ended March 31,20242023Automotive sales$16,460$18,878 Automotive regulatory credits442 521 Energy generation and storage sales1,522 1,413 Services and other2,288 1,8
51、37 Total revenues from sales and services20,712 22,649 Automotive leasing476 564 Energy generation and storage leasing113 116 Total revenues$21,301$23,329 Automotive SegmentAutomotive SalesDeferred revenue related to the access to our Full Self Driving(Supervised)(“FSD”)Capability features and their
52、 ongoingmaintenance,internet connectivity,free Supercharging programs and over-the-air software updates primarily on automotive salesamounted to$3.50 billion and$3.54 billion as of March 31,2024 and December 31,2023,respectively.9Table of ContentsDeferred revenue is equivalent to the total transacti
53、on price allocated to the performance obligations that are unsatisfied,orpartially unsatisfied,as of the balance sheet date.Revenue recognized from the deferred revenue balances as of December 31,2023and 2022 was$281 million and$134 million for the three months ended March 31,2024 and 2023,respectiv
54、ely.Of the totaldeferred revenue balance as of March 31,2024,we expect to recognize$848 million of revenue in the next 12 months.Theremaining balance will be recognized at the time of transfer of control of the product or over the performance period.We have financing receivables on our consolidated
55、balance sheets related to loans we provide for financing our automotivedeliveries.As of March 31,2024 and December 31,2023,we have current net financing receivables of$241 million and$242million,respectively,in Accounts receivable,net,and$971 million and$1.04 billion,respectively,in Other non-curren
56、t assets forthe long-term portion.Automotive Leasing RevenueDirect Sales-Type Leasing ProgramLease receivables relating to sales-type leases are presented on the consolidated balance sheets as follows(in millions):March 31,2024December 31,2023Gross lease receivables$702$780 Unearned interest income(
57、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 assets446 507 Net investment in sales-type leases$630$696 Energy Generation and Storage SegmentEnergy Generation and Storage Sa
58、lesWe record as deferred revenue any non-refundable amounts that are collected from customers related to prepayments,whichis recognized as revenue ratably over the respective customer contract term.As of March 31,2024 and December 31,2023,deferred revenue related to such customer payments amounted t
59、o$1.78 billion and$1.60 billion,respectively,mainly due tocontractual payment terms.Revenue recognized from the deferred revenue balances as of December 31,2023 and 2022 was$417million and$230 million for the three months ended March 31,2024 and 2023,respectively.As of March 31,2024,totaltransaction
60、 price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an originalexpected length of more than one year was$3.86 billion.Of this amount,we expect to recognize$1.00 billion in the next 12months and the rest over the remaining performance obligati
61、on period.We have financing receivables on our consolidated balance sheets related to loans we provide for financing our energyproducts.As of March 31,2024 and December 31,2023,we have current net financing receivables of$32 million and$31 million,respectively,in Accounts receivable,net,and$608 mill
62、ion and$578 million,respectively,in Other non-current assets for the long-term portion.10Table of ContentsIncome TaxesWe are subject to income taxes in the U.S.and in many foreign jurisdictions.Significant judgment is required indetermining our provision for income taxes,our deferred tax assets and
63、liabilities and any valuation allowance recorded against ournet deferred tax assets that are not more likely than not to be realized.We monitor the realizability of our deferred tax assets takinginto account all relevant factors at each reporting period.In completing our assessment of realizability
64、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 ajurisdictional basis,volatility in actual earnings,excess tax benefits related to stock-based compensation in recent prior years,andimpacts of the timing
65、of reversal of existing temporary differences.We also rely on our assessment of the Companys projectedfuture results of business operations,including uncertainty in future operating results relative to historical results,volatility in themarket price of our common stock and its performance over time
66、,variable macroeconomic conditions impacting our ability toforecast future taxable income,and changes in business that may affect the existence and magnitude of future taxable income.Ourvaluation allowance assessment is based on our best estimate of future results considering all available informati
67、on.Our provision for or benefit from income taxes for interim periods is determined using an estimate of our annual effectivetax rate,adjusted for discrete items,if any,that are taken into account in the relevant period.Each quarter,we update our estimateof the annual effective tax rate,and if our e
68、stimated tax rate changes,we make a cumulative adjustment.Net Income per Share of Common Stock Attributable to Common StockholdersThe following table presents the reconciliation of net income attributable to common stockholders to net income used incomputing basic and diluted net income per share of
69、 common stock(in millions):Three Months Ended March 31,20242023Net 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 The following table presents the rec
70、onciliation of basic to diluted weighted average shares used in computing net incomeper share of common stock attributable to common stockholders(in millions):Three Months Ended March 31,20242023Weighted average shares used in computing net income per share of common stock,basic3,1863,166Add:Stock-b
71、ased awards286289Convertible senior notes12Warrants1111Weighted average shares used in computing net income per share of common stock,diluted3,4843,468The following table presents the potentially dilutive shares that were excluded from the computation of diluted net incomeper share of common stock a
72、ttributable to common stockholders,because their effect was anti-dilutive(in millions):Three Months Ended March 31,20242023Stock-based awards232511Table of ContentsRestricted CashOur total cash and cash equivalents and restricted cash,as presented in the consolidated statements of cash flows,was asf
73、ollows(in millions):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 andother current assets363 543 486 294 Restricted cash included in other non-current assets296 248 236 377 Total as present
74、ed in the consolidated statements of cashflows$12,464$17,189$16,770$16,924 Accounts Receivable and Allowance for Doubtful AccountsDepending on the day of the week on which the end of a fiscal quarter falls,our accounts receivable balance may fluctuateas we are waiting for certain customer payments t
75、o clear through our banking institutions and receipts of payments from ourfinancing partners,which can take up to approximately two weeks based on the contractual payment terms with such partners.Ouraccounts receivable balances associated with our sales of regulatory credits are dependent on contrac
76、tual payment terms.Additionally,government rebates can take up to a year or more to be collected depending on the customary processing timelines ofthe specific jurisdictions issuing them.These various factors may have a significant impact on our accounts receivable balancefrom period to period.As of
77、 March 31,2024 and December 31,2023,government rebates receivable was$572 million and$378million,respectively,in Accounts receivable,net for the current portion and$45 million and$207 million,respectively,in Othernon-current assets for the long-term portion in our consolidated balance sheets.Financi
78、ng ReceivablesAs of March 31,2024 and December 31,2023,the vast majority of our financing receivables were at current status with animmaterial balance being past due.As of March 31,2024 and December 31,2023,the majority of our financing receivables,excluding MyPower notes receivable,were originated
79、in 2023 and 2022.As of March 31,2024 and December 31,2023,the total outstanding balance of MyPower customer notes receivable,net ofallowance for expected credit losses,was$263 million and$266 million,respectively,of which$5 million was due in the next 12months.As of March 31,2024 and December 31,202
80、3,the allowance for expected credit losses was$36 million.Concentration of RiskCredit RiskFinancial instruments that potentially subject us to a concentration of credit risk consist of cash,cash equivalents,investments,restricted cash,accounts receivable and other finance receivables.Our cash and in
81、vestments balances are primarily ondeposit at high credit quality financial institutions or invested in U.S.government securities,commercial paper,corporate debtsecurities and money market funds.These deposits are typically in excess of insured limits.As of March 31,2024 andDecember 31,2023,no entit
82、y represented 10%or more of our total receivables balance.Supply RiskWe are dependent on our suppliers,including single source suppliers,and the inability of these suppliers to delivernecessary components of our products in a timely manner at prices,quality levels and volumes acceptable to us,or our
83、 inability toefficiently manage these components from these suppliers,could have a material adverse effect on our business,prospects,financial condition and operating results.12Table of ContentsWarrantiesAccrued warranty activity consisted of the following(in millions):Three Months Ended March 31,20
84、242023Accrued warrantybeginning of period$5,152$3,505 Warranty costs incurred(328)(280)Net changes in liability for pre-existing warranties,including expirations and foreignexchange impact(18)208 Provision for warranty547 532 Accrued warrantyend of period$5,353$3,965 Recent Accounting Pronouncements
85、Recently issued accounting pronouncements not yet adoptedIn November 2023,the Financial Accounting Standards Board(“FASB”)issued Accounting Standards Update(“ASU”)No.2023-07,Improvements to Reportable Segment Disclosures(Topic 280).This ASU updates reportable segment disclosurerequirements by requir
86、ing disclosures of significant reportable segment expenses that are regularly provided to the Chief OperatingDecision Maker(“CODM”)and included within each reported measure of a segments profit or loss.This ASU also requiresdisclosure of the title and position of the individual identified as the COD
87、M and an explanation of how the CODM uses thereported measures of a segments profit or loss in assessing segment performance and deciding how to allocate resources.The ASUis effective for annual periods beginning after December 15,2023,and interim periods within fiscal years beginning afterDecember
88、15,2024.Adoption of the ASU should be applied retrospectively to all prior periods presented in the financialstatements.Early adoption is also permitted.This ASU will likely result in us including the additional required disclosures whenadopted.We are currently evaluating the provisions of this ASU
89、and expect to adopt them for the year ending December 31,2024.In December 2023,the FASB issued ASU No.2023-08,Accounting for and Disclosure of Crypto Assets(Subtopic 350-60).This ASU requires certain crypto assets to be measured at fair value separately on the balance sheet and in the income stateme
90、nteach 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 each significant crypto asset holding.The ASU is effective for annual periods beginning afterDecember 15,2024,including interim period
91、s within those fiscal years.Adoption of the ASU requires a cumulative-effectadjustment to the opening balance of retained earnings as of the beginning of the annual reporting period in which an entity adoptsthe amendments.Early adoption is also permitted,including adoption in an interim period.Howev
92、er,if the ASU is early adopted inan interim period,an entity must adopt the ASU as of the beginning of the fiscal year that includes the interim period.This ASUwill result in gains and losses recorded in the consolidated financial statements of operations and additional disclosures whenadopted.We ar
93、e currently evaluating the adoption of this ASU and it could materially affect the carrying value of our crypto assetsheld and the gains and losses relating thereto,depending on the fair value at adoption.In December 2023,the FASB issued ASU No.2023-09,Improvements to Income Tax Disclosures(Topic 74
94、0).The ASUrequires disaggregated information about a reporting entitys effective tax rate reconciliation as well as additional information onincome taxes paid.The ASU is effective on a prospective basis for annual periods beginning after December 15,2024.Earlyadoption is also permitted for annual fi
95、nancial statements that have not yet been issued or made available for issuance.This ASUwill likely result in the required additional disclosures being included in our consolidated financial statements,once adopted.13Table of ContentsNote 2 Fair Value of Financial InstrumentsASC 820,Fair Value Measu
96、rements(“ASC 820”)states that fair value is an exit price,representing the amount that wouldbe received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.As such,fair value isa market-based measurement that should be determined based on assumption
97、s that market participants would use in pricing anasset or a liability.The three-tiered fair value hierarchy,which prioritizes which inputs should be used in measuring fair value,iscomprised of:(Level I)observable inputs such as quoted prices in active markets;(Level II)inputs other than quoted pric
98、es inactive markets that are observable either directly or indirectly and(Level III)unobservable inputs for which there is little or nomarket data.The fair value hierarchy requires the use of observable market data when available in determining fair value.Ourassets and liabilities that were measured
99、 at fair value on a recurring basis were as follows(in millions):March 31,2024December 31,2023 Fair ValueLevel ILevel IILevel IIIFair ValueLevel ILevel IILevel IIIMoney market funds$368$368$109$109$U.S.governmentsecurities4,122 4,122 5,136 5,136 Corporate debt securities420 420 480 480 Certificates
100、of deposit andtime deposits8,155 8,155 6,996 6,996 Commercial paper2,411 2,411 470 470 Total$15,476$368$15,108$13,191$109$13,082$All of our money market funds were classified within Level I of the fair value hierarchy because they were valued usingquoted prices in active markets.Our U.S.government s
101、ecurities,certificates of deposit,commercial paper,time deposits andcorporate debt securities are classified within Level II of the fair value hierarchy and the market approach was used to determinefair value of these investments.Our cash,cash equivalents and investments classified by security type
102、as of March 31,2024 and December 31,2023consisted of the following(in millions):March 31,2024 AdjustedCostGrossUnrealizedGainsGrossUnrealizedLossesFair ValueCash andCashEquivalentsShort-TermInvestmentsCash$11,387$11,387$11,387$Money market funds368 368 368 U.S.government securities4,124 (2)4,122 4,1
103、22 Corporate debt securities423 1(4)420 420 Certificates of deposit and time deposits8,155 8,155 8,155 Commercial paper2,414 (3)2,411 50 2,361 Total cash,cash equivalents and short-terminvestments$26,871$1$(9)$26,863$11,805$15,058 14Table of Contents December 31,2023 AdjustedCostGrossUnrealizedGains
104、GrossUnrealizedLossesFair ValueCash andCashEquivalentsShort-TermInvestmentsCash$15,903$15,903$15,903$Money market funds109 109 109 U.S.government securities5,136 1(1)5,136 277 4,859 Corporate debt securities485 1(6)480 480 Certificates of deposit and time deposits6,995 1 6,996 6,996 Commercial paper
105、470 470 109 361 Total cash,cash equivalents and short-term investments$29,098$3$(7)$29,094$16,398$12,696 We record gross realized gains,losses and credit losses as a component of Other income(expense),net in the consolidatedstatements of operations.For the three months ended March 31,2024 and 2023,w
106、e did not recognize any material gross realizedgains,losses or credit losses.The ending allowance balances for credit losses were immaterial as of March 31,2024 andDecember 31,2023.We have determined that the gross unrealized losses on our investments as of March 31,2024 andDecember 31,2023 were tem
107、porary in nature.The following table summarizes the fair value of our investments by stated contractual maturities as of March 31,2024(inmillions):Due in 1 year or less$14,805 Due in 1 year through 5 years231 Due in 5 years through 10 years22 Total$15,058 Disclosure of Fair ValuesOur financial instr
108、uments that are not re-measured at fair value include accounts receivable,financing receivables,otherreceivables,digital assets,accounts payable,accrued liabilities,customer deposits and debt.The carrying values of these financialinstruments materially approximate their fair values,other than our 2.
109、00%Convertible Senior Notes due in 2024(“2024 Notes”)and digital assets.We estimate the fair value of the 2024 Notes using commonly accepted valuation methodologies and market-based riskmeasurements that are indirectly observable,such as credit risk(Level II).In addition,we estimate the fair values
110、of our digitalassets based on quoted prices in active markets(Level I).The following table presents the estimated fair values and the carryingvalues(in millions):March 31,2024December 31,2023 Carrying ValueFair ValueCarrying ValueFair Value2024 Notes$21$180$37$443 Digital assets,net$184$821$184$487
111、15Table of ContentsNote 3 InventoryOur inventory consisted of the following(in millions):March 31,2024December 31,2023Raw materials$5,584$5,390 Work in process2,507 2,016 Finished goods(1)6,747 5,049 Service parts1,195 1,171 Total$16,033$13,626(1)Finished goods inventory includes products-in-transit
112、 to fulfill customer orders,new vehicles available for sale,usedvehicles and energy products available for sale.We write-down inventory for any excess or obsolete inventory or when we believe that the net realizable value of inventoryis less than the carrying value.During the three months ended Marc
113、h 31,2024 and 2023,we recorded write-downs of$39 millionin Cost of revenues in the consolidated statements of operations.Note 4 Property,Plant and Equipment,NetOur property,plant and equipment,net,consisted of the following(in millions):March 31,2024December 31,2023Machinery,equipment,vehicles and o
114、ffice furniture$16,942$16,309 Tooling3,480 3,129 Leasehold improvements3,291 3,136 Land and buildings9,852 9,498 AI infrastructure2,255 1,510 Computer equipment,hardware and software2,534 2,409 Construction in progress5,934 5,791 44,288 41,782 Less:Accumulated depreciation(12,852)(12,057)Total$31,43
115、6$29,725 Construction in progress is primarily comprised of ongoing construction and expansion of our facilities,equipment andtooling related to the manufacturing of our products as well as construction related to our AI infrastructure.Depreciation expense during the three months ended March 31,2024
116、 and 2023 was$929 million and$722 million,respectively.16Table of ContentsNote 5 Accrued Liabilities and OtherOur accrued liabilities and other current liabilities consisted of the following(in millions):March 31,2024December 31,2023Accrued purchases(1)$2,635$2,721 Accrued warranty reserve,current p
117、ortion1,605 1,546 Payroll and related costs1,464 1,325 Taxes payable(2)1,186 1,204 Customer deposits888 876 Operating lease liabilities,current portion704 672 Sales return reserve,current portion195 219 Other current liabilities566 517 Total$9,243$9,080(1)Accrued purchases primarily reflects receipt
118、s of goods and services for which we had not yet been invoiced.As we areinvoiced for these goods and services,this balance will reduce and accounts payable will increase.(2)Taxes payable includes value added tax,income tax,sales tax,property tax and use tax payables.Note 6 Other Long-Term Liabilitie
119、sOur other long-term liabilities consisted of the following(in millions):March 31,2024December 31,2023Operating lease liabilities$3,847$3,671 Accrued warranty reserve3,748 3,606 Other non-current liabilities885 876 Total other long-term liabilities$8,480$8,153 Note 7 DebtThe following is a summary o
120、f our debt and finance leases as of March 31,2024(in millions):Net Carrying ValueUnpaidPrincipalBalanceUnusedCommittedAmount(1)ContractualInterest RatesContractualMaturity Date CurrentLong-TermRecourse debt:2024 Notes$21$21$2.00%May 2024RCF Credit Agreement 5,000 Not applicableJanuary 2028Solar Bond
121、s1 6 7 4.70-5.75%March 2025-January 2031Other26 26 5.20%December 2026Total recourse debt48 6 54 5,000 Non-recourse debt:Automotive Asset-backed Notes2,054 2,405 4,475 0.60-6.57%December 2024-May 2031Solar Asset-backed Notes4 7 12 4.80%December 2026Cash Equity Debt29 321 359 5.25-5.81%July 2033-Janua
122、ry 2035Total non-recourse debt2,087 2,733 4,846 Total debt2,135 2,739$4,900$5,000 Finance leases326 160 Total debt and finance leases$2,461$2,899 17Table of ContentsThe following is a summary of our debt and finance leases as of December 31,2023(in millions):Net Carrying ValueUnpaidPrincipalBalanceU
123、nusedCommittedAmount(1)ContractualInterest RatesContractualMaturity DateCurrentLong-TermRecourse debt:2024 Notes$37$37$2.00%May 2024RCF Credit Agreement 5,000 Not applicableJanuary 2028Solar Bonds 7 7 4.70-5.75%March 2025-January 2031Other 28 Not applicableDecember 2026Total recourse debt37 7 44 5,0
124、28 Non-recourse debt:Automotive Asset-backed Notes1,906 2,337 4,259 0.60-6.57%July 2024-May 2031Solar Asset-backed Notes4 8 13 4.80%December 2026Cash Equity Debt28 330 367 5.25-5.81%July 2033-January 2035Total non-recourse debt1,938 2,675 4,639 Total debt1,975 2,682$4,683$5,028 Finance leases398 175
125、 Total debt and finance leases$2,373$2,857(1)There are no restrictions on draw-down or use for general corporate purposes with respect to any available committed fundsunder our RCF Credit Agreement,except certain specified conditions prior to draw-down.Refer to the notes to theconsolidated financial
126、 statements included in our reporting on Form 10-K for the year ended December 31,2023 for theterms of the facility.Recourse debt refers to debt that is recourse to our general assets.Non-recourse debt refers to debt that is recourse to onlyassets of our subsidiaries.The differences between the unpa
127、id principal balances and the net carrying values are due to debtdiscounts or deferred issuance costs.As of March 31,2024,we were in material compliance with all financial debt covenants.2024 NotesAs of March 31,2024,holders of the 2024 Notes have the option to convert and the 2024 Notes are set to
128、mature in May2024.Automotive Asset-backed NotesIn the first quarter of 2024,we transferred beneficial interests related to certain leased vehicles into a special purpose entityand issued$750 million in aggregate principal amount of Automotive Asset-backed Notes,with terms similar to our otherpreviou
129、sly issued Automotive Asset-backed Notes.The proceeds from the issuance,net of debt issuance costs,were$747 million.Note 8 Equity Incentive PlansOther Performance-Based GrantsFrom time to time,the Compensation Committee of our Board of Directors grants certain employees performance-basedrestricted s
130、tock units and stock options.As of March 31,2024,we had unrecognized stock-based compensation expense of$613 million under these grants topurchase or receive an aggregate 5.0 million shares of our common stock.For awards probable of achievement,we estimate theunrecognized stock-based compensation ex
131、pense of$104 million will be recognized over a weighted-average period of 4.8 years.For the three months ended March 31,2024 and 2023,stock-based compensation expense related to these grants,net offorfeitures,were immaterial.18Table of ContentsSummary Stock-Based Compensation InformationThe followin
132、g table summarizes our stock-based compensation expense by line item in the consolidated statements ofoperations(in millions):Three Months Ended March 31,20242023Cost of revenues$202$192 Research and development212 134 Selling,general and administrative110 92 Total$524$418 Note 9 Income TaxesOur eff
133、ective tax rate was 26%percent for the three months ended March 31,2024,compared to 9%for the three monthsended March 31,2023.The increase in our effective tax rate is primarily due to the impact of releasing the valuation allowance onour U.S.deferred tax assets in the fourth quarter of 2023 and cha
134、nges in the mix of our jurisdictional earnings.Our effective tax rates for the first three months of 2024 and 2023 differed from the U.S.federal statutory rate of 21%primarily due to the mix of our jurisdictional earnings subject to different tax rates,impact of valuation allowances on our deferredt
135、ax assets,as well as benefits from our U.S.tax credits and the Inflation Reduction Act of 2022(“IRA”)manufacturing credits.We are subject to tax examinations in the U.S.federal,state,and foreign jurisdictions.Given the uncertainty in timing andoutcome of our tax examinations,an estimate of the range
136、 of the reasonably possible change in gross unrecognized tax benefitswithin twelve months cannot be made at this time.Note 10 Commitments and ContingenciesOperating Lease Arrangements in Buffalo,New York and Shanghai,ChinaFor a description of our operating lease arrangements in Buffalo,New York,and
137、Shanghai,China,refer to Note 15,Commitments and Contingencies,in our Annual Report on Form 10-K for the year ended December 31,2023.As of March 31,2024,we expect to meet the requirements under these arrangements,as may be modified from time to time,based on our currentand anticipated level of operat
138、ions.Legal ProceedingsLitigation Relating to 2018 CEO Performance AwardOn June 4,2018,a purported Tesla stockholder filed a putative class and derivative action in the Delaware Court ofChancery against Elon Musk and the members of Teslas board of directors as then constituted,alleging corporate wast
139、e,unjustenrichment and that such board members breached their fiduciary duties by approving the stock-based compensation plan awardedto Elon Musk in 2018(the“2018 CEO Performance Award”).Trial was held November 14-18,2022.Post-trial briefing andargument are now complete.On January 30,2024,the Court
140、issued an opinion ordering recission of Mr.Musks 2018compensation plan.Plaintiffs counsel have filed a brief seeking a fee award of 29,402,900 Tesla shares,plus expenses of$1,120,115.50.Teslas opposition to the fee request is due on June 7,2024,and a hearing is scheduled for July 8,2024.On April17,2
141、024,Tesla filed a preliminary proxy statement which included a number of proposals,including a proposal to ratify the 2018CEO Performance Award.Litigation Related to Directors CompensationOn June 17,2020,a purported Tesla stockholder filed a derivative action in the Delaware Court of Chancery,purpor
142、tedly onbehalf of Tesla,against certain of Teslas current and former directors regarding compensation awards granted to Teslas directors,other than Elon Musk,between 2017 and 2020.The suit asserts claims for breach of fiduciary duty and unjust enrichment andseeks declaratory and injunctive relief,un
143、specified damages and other relief.Defendants filed their answer on September 17,2020.19Table of ContentsOn July 14,2023,the parties filed a Stipulation and Agreement of Compromise and Settlement,which does not involve anadmission of any wrongdoing by any party.If the settlement is approved by the C
144、ourt,this action will be fully settled anddismissed with prejudice.Pursuant to the terms of the agreement,Tesla provided notice of the proposed settlement to stockholdersof record as of July 14,2023.The Court held a hearing regarding the settlement on October 13,2023,after which it took thesettlemen
145、t and plaintiff counsels fee request under advisement.The settlement is not expected to have an adverse impact on ourresults of operations,cash flows or financial position.Litigation Relating to Potential Going Private TransactionBetween August 10,2018 and September 6,2018,nine purported stockholder
146、 class actions were filed against Tesla andElon Musk in connection with Mr.Musks August 7,2018 Twitter post that he was considering taking Tesla private.On January16,2019,Plaintiffs filed their consolidated complaint in the United States District Court for the Northern District of California andadde
147、d as defendants the members of Teslas board of directors.The consolidated complaint asserts claims for violations of thefederal securities laws and seeks unspecified damages and other relief.The parties stipulated to certification of a class ofstockholders,which the court granted on November 25,2020
148、.Trial started on January 17,2023,and on February 3,2023,a juryrendered a verdict in favor of the defendants on all counts.After trial,plaintiffs filed a motion for judgment as a matter of law anda motion for new trial,which the Court denied and judgement was entered in favor of defendants on July 1
149、1,2023.On July 14,2023,plaintiffs filed a notice of appeal.Between October 17,2018 and March 8,2021,seven derivative lawsuits were filed in the Delaware Court of Chancery,purportedly on behalf of Tesla,against Mr.Musk and the members of Teslas board of directors,as constituted at relevant times,inre
150、lation to statements made and actions connected to a potential going private transaction,with certain of the lawsuits challengingadditional Twitter posts by Mr.Musk,among other things.Five of those actions were consolidated,and all seven actions have beenstayed pending resolution of the appeal in th
151、e above-referenced consolidated purported stockholder class action.In addition tothese cases,two derivative lawsuits were filed on October 25,2018 and February 11,2019 in the U.S.District Court for theDistrict of Delaware,purportedly on behalf of Tesla,against Mr.Musk and the members of the Tesla bo
152、ard of directors as thenconstituted.Those cases have also been consolidated and stayed pending resolution of the appeal in the above-referencedconsolidated purported stockholder class action.On October 21,2022,a lawsuit was filed in the Delaware Court of Chancery by a purported shareholder of Tesla
153、alleging,among other things,that board members breached their fiduciary duties in connection with their oversight of the Companys 2018settlement with the SEC,as amended.Among other things,the plaintiff seeks reforms to the Companys corporate governance andinternal procedures,unspecified damages,and
154、attorneys fees.The parties reached an agreement to stay the case until June 3,2024.On November 15,2021,JPMorgan Chase Bank(“JP Morgan”)filed a lawsuit against Tesla in the Southern District of NewYork alleging breach of a stock warrant agreement that was entered into as part of a convertible notes o
155、ffering in 2014.In 2018,JPMorgan informed Tesla that it had adjusted the strike price based upon Mr.Musks August 7,2018 Twitter post that he wasconsidering taking Tesla private.Tesla disputed JP Morgans adjustment as a violation of the parties agreement.In 2021,Tesladelivered shares to JP Morgan per
156、 the agreement,which they duly accepted.JP Morgan now alleges that it is owed approximately$162 million as the value of additional shares that it claims should have been delivered as a result of the adjustment to the strikeprice in 2018.On January 24,2022,Tesla filed multiple counterclaims as part o
157、f its answer to the underlying lawsuit,assertingamong other points that JP Morgan should have terminated the stock warrant agreement in 2018 rather than make an adjustment tothe strike price that it should have known would lead to a commercially unreasonable result.Tesla believes that the adjustment
158、smade by JP Morgan were neither proper nor commercially reasonable,as required under the stock warrant agreements.JP Morganfiled a motion for judgment on the pleadings,which Tesla opposed,and that motion is currently pending before the Court.Litigation and Investigations Relating to Alleged Discrimi
159、nation and HarassmentOn October 4,2021,in a case captioned Diaz v.Tesla,a jury in the Northern District of California returned a verdict againstTesla on claims by a former contingent worker that he was subjected to race discrimination while assigned to work at TeslasFremont Factory from 2015-2016.A
160、retrial was held starting on March 27,2023,after which a jury returned a verdict of$3,175,000.As a result,the damages awarded against Tesla were reduced from an initial$136.9 million(October 4,2021)down to$15 million(April 13,2022),and then further down to$3.175 million(April 3,2023).On November 2,2
161、023,the plaintiff filed anotice of appeal,and on November 16,2023,Tesla filed a notice of cross appeal.In March 2024,the parties reached a confidentialsettlement resolving all claims in this matter.20Table of ContentsOn February 9,2022,shortly after the first Diaz jury verdict,the California Civil R
162、ights Department(“CRD,”formerly“DFEH”)filed a civil complaint against Tesla in Alameda County,California Superior Court,alleging systemic racediscrimination,hostile work environment and pay equity claims,among others.CRDs amended complaint seeks monetarydamages and injunctive relief.On September 22,
163、2022,Tesla filed a cross complaint against CRD,alleging that it violated theAdministrative Procedures Act by failing to follow statutory pre-requisites prior to filing suit and that cross complaint was subjectto a sustained demurrer,which Tesla later amended and refiled.The case is currently in disc
164、overy.Trial is scheduled for October14,2024.Additionally,on June 1,2022 the Equal Employment Opportunity Commission(“EEOC”)issued a cause finding againstTesla that closely parallels the CRDs allegations.On September 28,2023,the EEOC filed a civil complaint against Tesla in theUnited States District
165、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,onDecember 26,2023,Tesla filed a motion to dismiss the case.Both motio
166、ns were subsequently denied.On June 16,2022,two Tesla stockholders filed separate derivative actions in the U.S.District Court for the Western Districtof Texas,purportedly on behalf of Tesla,against certain of Teslas current and former directors.Both suits assert claims for breachof fiduciary duty,u
167、njust enrichment,and violation of the federal securities laws in connection with alleged race and genderdiscrimination and sexual harassment.Among other things,plaintiffs seek declaratory and injunctive relief,unspecified damagespayable to Tesla,and attorneys fees.On July 22,2022,the Court consolida
168、ted the two cases and on September 6,2022,plaintiffsfiled a consolidated complaint.On November 7,2022,the defendants filed a motion to dismiss the case and on September 15,2023,the Court dismissed the action but granted plaintiffs leave to file an amended complaint.On November 2,2023,plaintifffiled
169、an amended complaint purportedly on behalf of Tesla,against Elon Musk.On December 19,2023,the defendants moved todismiss the amended complaint,which the Court granted on April 12,2024,with leave for the Plaintiffs to amend.Other Litigation Related to Our Products and ServicesWe are also subject to v
170、arious lawsuits that seek monetary and other injunctive relief.These lawsuits include proposed classactions and other consumer claims that allege,among other things,purported defects and misrepresentations related to ourproducts and services.For example,on September 14,2022,a proposed class action w
171、as filed against Tesla,Inc.and relatedentities in the U.S.District Court for the Northern District of California,alleging various claims about the Companys driverassistance technology systems under state and federal law.This case was later consolidated with several other proposed classactions,and a
172、Consolidated Amended Complaint was filed on October 28,2022,which seeks damages and other relief on behalf ofall persons who purchased or leased from Tesla between January 1,2016 to the present.On October 5,2022,a proposed classaction complaint was filed in the U.S.District Court for the Eastern Dis
173、trict of New York asserting similar state and federal lawclaims 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
174、Northern District of California consolidated action filed a motion for a preliminary injunction to order Tesla to(1)cease using theterm“Full Self-Driving Capability”(FSD Capability),(2)cease the sale and activation of FSD Capability and deactivate FSDCapability on Tesla vehicles,and(3)provide certai
175、n notices to consumers about proposed court-findings about the accuracy of theuse of the terms Autopilot and FSD Capability.Tesla opposed the motion.On September 30,2023,the Court denied the request fora preliminary injunction,compelled four of five plaintiffs to arbitration,and dismissed the claims
176、 of the fifth plaintiff with leave toamend the complaint.On October 31,2023,the remaining plaintiff in the Northern District of California action filed an amendedcomplaint,which Tesla has moved to dismiss.On October 2,2023,a similar proposed class action was filed in San Diego CountySuperior Court i
177、n California.Tesla subsequently removed the San Diego County case to federal court and on January 8,2024,thefederal court granted Teslas motion to transfer the case to the U.S.District Court for the Northern District of California.On February 27,2023,a proposed class action was filed in the U.S.Dist
178、rict Court for the Northern District of Californiaagainst Tesla,Inc.,Elon Musk and certain current and former Company executives.The complaint alleges that the defendantsmade material misrepresentations and omissions about the Companys Autopilot and FSD Capability technologies and seeksmoney damages
179、 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.OnNovember 6,2023,Tesla moved to dismiss the amended complaint.21Table of ContentsOn Mar
180、ch 14,2023,a proposed class action was filed against Tesla,Inc.in the U.S.District Court for the Northern Districtof California.Several similar complaints have also been filed in the same court and these cases have now all been consolidated.These complaints allege that Tesla violates federal antitru
181、st and warranty laws through its repair,service,and maintenancepractices and seeks,among other relief,damages for persons who paid Tesla for repairs services or Tesla compatible replacementparts from March 2019 to March 2023.On July 17,2023,these plaintiffs filed a consolidated amended complaint.On
182、September27,2023,the court granted Teslas motion to compel arbitration as to three of the plaintiffs,and on November 17,2023,the courtgranted Teslas motion to dismiss without prejudice.The plaintiffs filed a Consolidated Second Amended Complaint on December12,2023,which Tesla has moved to dismiss.Pl
183、aintiffs also appealed the courts arbitration order,which was denied.The Company intends to vigorously defend itself in these matters;however,we cannot predict the outcome or impact.Weare unable to reasonably estimate the possible loss or range of loss,if any,associated with these claims,unless note
184、d.Certain Investigations and Other MattersWe regularly receive requests for information,including subpoenas,from regulators and governmental authorities such asthe National Highway Traffic Safety Administration,the National Transportation Safety Board,the Securities and ExchangeCommission(“SEC”),the
185、 Department of Justice(“DOJ”),and various local,state,federal,and international agencies.The ongoingrequests 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 Teslas busin
186、ess,its personnel,and related parties.We routinelycooperate with such formal and informal requests for information,investigations,and other inquiries.To our knowledge nogovernment agency in any ongoing investigation has concluded that any wrongdoing occurred.We cannot predict the outcome orimpact of
187、 any ongoing matters.Should the government decide to pursue an enforcement action,there exists the possibility of amaterial adverse impact on our business,results of operation,prospects,cash flows,financial position or brand.We are also subject to various other legal proceedings,risks and claims tha
188、t arise from the normal course of businessactivities.For example,during the second quarter of 2023,a foreign news outlet reported that it obtained certain misappropriateddata including,purportedly non-public Tesla business and personal information.Tesla has made notifications to potentially affected
189、individuals(current and former employees)and regulatory authorities and we are working with certain law enforcement and otherauthorities.On August 5,2023,a putative class action was filed in the United States District Court for the Northern District ofCalifornia,purportedly on behalf of all U.S.indi
190、viduals impacted by the data incident,followed by several additional lawsuits,thateach assert claims under various state laws and seeks monetary damages and other relief.If an unfavorable ruling or developmentwere to occur in these or other possible legal proceedings,risks and claims,there exists th
191、e possibility of a material adverse impacton our business,results of operations,prospects,cash flows,financial position or brand.22Table of ContentsNote 11 Variable Interest Entity ArrangementsThe aggregate carrying values of the variable interest entities assets and liabilities,after elimination of
192、 any intercompanytransactions and balances,in the consolidated balance sheets were as follows(in millions):March 31,2024December 31,2023Assets Current assets Cash and cash equivalents$51$66 Accounts receivable,net17 13 Prepaid expenses and other current assets345 361 Total current assets413 440 Sola
193、r energy systems,net2,587 3,278 Other non-current assets334 369 Total assets$3,334$4,087 Liabilities Current liabilities Accrued liabilities and other$29$67 Deferred revenue5 6 Current portion of debt and finance leases1,905 1,564 Total current liabilities1,939 1,637 Deferred revenue,net of current
194、portion86 99 Debt and finance leases,net of current portion1,997 2,041 Total liabilities$4,022$3,777 Note 12 Segment Reporting and Information about Geographic AreasWe have two operating and reportable segments:(i)automotive and(ii)energy generation and storage.The following tablepresents revenues a
195、nd gross profit by reportable segment(in millions):Three Months Ended March 31,20242023Automotive segment Revenues$19,666$21,800 Gross profit$3,293$4,343 Energy generation and storage segment Revenues$1,635$1,529 Gross profit$403$168 The following table presents revenues by geographic area based on
196、the sales location of our products(in millions):Three Months Ended March 31,20242023United States$9,762$11,247 China4,592 4,891 Other international6,947 7,191 Total$21,301$23,329 23Table of ContentsThe following table presents long-lived assets by geographic area(in millions):March 31,2024December 3
197、1,2023United States$28,274$26,629 Germany4,228 4,258 China2,755 2,820 Other international1,341 1,247 Total$36,598$34,954 The following table presents inventory by reportable segment(in millions):March 31,2024December 31,2023Automotive$13,587$11,139 Energy generation and storage2,446 2,487 Total$16,0
198、33$13,626 Note 13 Restructuring and OtherIn April 2024,we initiated certain restructuring actions in order to reduce costs and improve efficiency.As a result,weexpect to recognize in excess of$350 million of costs primarily related to employee termination expenses in the second quarter of2024.24Tabl
199、e of ContentsITEM 2.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OFOPERATIONSThe following discussion and analysis should be read in conjunction with the consolidated financial statements and therelated notes included elsewhere in this Quarterly Report on Form 10-Q.Overview
200、Our mission is to accelerate the worlds transition to sustainable energy.We design,develop,manufacture,lease and sellhigh-performance fully electric vehicles,solar energy generation systems and energy storage products.We also offer maintenance,installation,operation,charging,insurance,financial and
201、other services related to our products.Additionally,we are increasinglyfocused on products and services based on AI,robotics and automation.In 2024,we produced approximately 433,000 consumer vehicles and delivered approximately 387,000 consumer vehiclesthrough the first quarter.We are focused on pro
202、fitable growth,including by leveraging existing factories and production lines tointroduce new and more affordable products,increasing vehicle production,utilized capacity and delivery capabilities,reducingcosts,improving and developing our vehicles and battery technologies,vertically integrating an
203、d localizing our supply chain,further improving and deploying our FSD capabilities,including through our planned robotaxi product,and expanding our globalinfrastructure,including our service and charging infrastructure.In 2024,we deployed 4.05 GWh of energy storage products through the first quarter
204、.We are focused on ramping theproduction and increasing the market penetration of our energy storage products.During the three months ended March 31,2024,we recognized total revenues of$21.30 billion,representing a decrease of$2.03 billion,compared to the prior year.During the three months ended Mar
205、ch 31,2024,our net income attributable to commonstockholders was$1.13 billion,representing an unfavorable change of$1.38 billion,compared to the same period in the prior year.We continue to ramp production and build and optimize our manufacturing capacity,expand our operations while focusing onfurth
206、er cost reductions and operational efficiencies to enable increased deliveries and deployments of our products,and invest inresearch and development to accelerate our AI,software,and fleet-based profits for further revenue growth.We ended the first quarter of 2024 with$26.86 billion in cash and cash
207、 equivalents and investments,representing a decreaseof$2.23 billion from the end of 2023.Our cash flows provided by operating activities during the three months ended March 31,2024 and 2023 were$242 million and$2.51 billion,respectively,representing a decrease of$2.27 billion.Capital expendituresamo
208、unted to$2.77 billion during the three months ended March 31,2024,compared to$2.07 billion during the same period endedMarch 31,2023,representing an increase of$701 million.Overall growth has allowed our business to generally fund itself,and wewill continue investing in a number of capital-intensive
209、 projects and research and development in upcoming periods.Management Opportunities,Challenges and Uncertainties and 2024 OutlookAutomotiveProductionThe following is a summary of the status of production of each of our announced vehicle models in production and underdevelopment,as of the date of thi
210、s Quarterly Report on Form 10-Q:Production LocationVehicle Model(s)Production StatusFremont FactoryModel S/Model XActive Model 3/Model YActiveGigafactory ShanghaiModel 3/Model YActiveGigafactory Berlin-BrandenburgModel YActiveGigafactory TexasModel YActive CybertruckActiveGigafactory NevadaTesla Sem
211、iPilot productionVariousNext Generation PlatformIn developmentTBDRoadsterIn development25Table of ContentsWe are focused on growing our manufacturing capacity,which includes capacity for manufacturing new vehicle modelssuch as our Cybertruck and future vehicles utilizing aspects of our next generati
212、on platform,and ramping the production at ourGigafactories to their installed production capacities as well as increasing production rate and efficiency at our current factories.The next phase of production growth will depend on the continued ramp at our factories and be initiated by advances in aut
213、onomyand the introduction of new products,including those built on our next generation vehicle platform,as well as our ability to add toour 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
214、 longer range.Our goals are to improve vehicle performance,decrease production costs andincrease affordability and customer awareness.These plans are subject to uncertainties inherent in establishing and ramping manufacturing operations,which may beexacerbated by new product and manufacturing techno
215、logies we introduce,the number of concurrent international projects,anyindustry-wide component constraints,labor shortages and any future impact from events outside of our control.For example,during the first quarter of 2024,we experienced a sequential decline in production volumes partially caused
216、by the early phase ofthe production ramp of the updated Model 3 at our Fremont factory,and factory shutdowns at Gigafactory Berlin-Brandenburgresulting from shipping diversions caused by the Red Sea conflict and an arson attack.Moreover,we have set ambitioustechnological targets with our plans for b
217、attery cells as well as for iterative manufacturing and design improvements for ourvehicles with each new factory.AutomotiveDemand,Sales,Deliveries and InfrastructureOur cost reduction efforts,cost innovation strategies,and additional localized procurement and manufacturing are key toour vehicles af
218、fordability and have allowed us to competitively price our vehicles.We will also continue to generate demand byimproving our vehicles performance and functionality,including through product offerings and features based on artificialintelligence such as Autopilot,FSD(Supervised),and other software,an
219、d delivering new vehicles,such as our Cybertruck.Inaddition,we have been increasing awareness,and expanding our vehicle financing programs,including attractive leasing terms forour customers.Moreover,we expect to continue to benefit from ongoing electrification of the automotive sector and increasin
220、genvironmental regulations and initiatives.However,we operate in a cyclical industry that is sensitive to political and regulatory uncertainty,including with respect totrade and the environment,all of which can be compounded by inflationary pressures,rising energy prices,interest ratefluctuations an
221、d the liquidity of enterprise customers.For example,inflationary pressures have increased across the markets inwhich 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 financ
222、e arrangements.Further,sales of vehicles in the automotive industry alsotend 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 trans
223、portation,we willhave to adjust and continue to execute well to maintain our momentum.Additionally,our suppliers liquidity and allocation plansmay be affected by current challenges in the North American automotive industry,which could reduce our access to components orresult in unfavorable changes t
224、o cost.These macroeconomic and industry trends have had,and will likely continue to have,animpact on the pricing of,and order rate for our vehicles,and in turn our operating margin.Changes in government and economicincentives in relation to electric vehicles may also impact our sales.We will continu
225、e to adjust accordingly to such developments,and we believe our ongoing cost reduction,including improved production innovation and efficiency at our newest factories andlower logistics costs,and focus on operating leverage will continue to benefit us in relation to our competitors,while our newprod
226、ucts will help enable future growth.As our production increases,we must work constantly to similarly increase vehicle delivery capability so that it does notbecome a bottleneck on our total deliveries.We are also committed to reducing the percentage of vehicles delivered in the thirdmonth of each qu
227、arter,which will help to reduce the cost per vehicle.As we expand our manufacturing operations globally,we willalso have to continue to increase and staff our delivery,servicing and charging infrastructure accordingly,maintain our vehiclereliability and optimize our Supercharger locations to ensure
228、cost effectiveness and customer satisfaction.In particular,as otherautomotive manufacturers have announced their adoption of the North American Charging Standard(“NACS”)and agreementswith us to utilize our Superchargers,we must correspondingly expand our network in order to ensure adequate availabil
229、ity to meetcustomer demands.We also remain focused on continued enhancements of the capability and efficiency of our servicingoperations.26Table of ContentsEnergy Generation and Storage Demand,Production and DeploymentThe long-term success of this business is dependent upon incremental volume growth
230、.We continue to increase theproduction of our energy storage products to meet high levels of demand,including the construction of a new Megafactory inShanghai and the ongoing ramp at our Megafactory in Lathrop,California.For Megapack,energy storage deployments can varymeaningfully quarter to quarter
231、 depending on the timing of specific project milestones.As these product lines grow,we will haveto maintain adequate battery cell supply for our energy storage products.Cash Flow and Capital Expenditure TrendsOur capital expenditures are typically difficult to project beyond the short-term given the
232、 number and breadth of our coreprojects at any given time,and may further be impacted by uncertainties in future global market conditions.We are simultaneouslydeveloping and ramping new products,building or ramping manufacturing facilities on three continents,piloting the developmentand manufacture
233、of new battery cell technologies,expanding our Supercharger network and investing in autonomy and otherartificial intelligence enabled training and products,and the pace of our capital spend may vary depending on overall priorityamong projects,the pace at which we meet milestones,production adjustme
234、nts to and among our various products,increasedcapital efficiencies and the addition of new projects.Owing and subject to the foregoing as well as the pipeline of announcedprojects under development,all other continuing infrastructure growth and varying levels of inflation,we currently expect ourcap
235、ital expenditures to exceed$10.00 billion in 2024 and be between$8.00 to$10.00 billion in each of the following two fiscalyears.Our business has generally been consistently generating cash flow from operations in excess of our level of capital spend,and with better working capital management resulti
236、ng in shorter days sales outstanding than days payable outstanding,our salesgrowth is also generally facilitating positive cash generation.We have and will continue to utilize such cash flows,among otherthings,to do more vertical integration,expand our product roadmap,invest in autonomy and provide
237、financing options to ourcustomers.At the same time,we are likely to see heightened levels of capital expenditures during certain periods depending on thespecific pace of our capital-intensive projects and other potential variables such as rising material prices and increases in supplychain and labor
238、 expenses resulting from changes in global trade conditions and labor availability.Overall,we expect our ability tobe self-funding to continue as long as macroeconomic factors support current trends in our sales.Critical Accounting Policies and EstimatesFor a description of our critical accounting p
239、olicies and estimates,refer to Part II,Item 7,Critical Accounting Policies andEstimates in our Annual Report on Form 10-K for the year ended December 31,2023.There have been no material changes to ourcritical accounting policies and estimates since our Annual Report on Form 10-K for the year ended D
240、ecember 31,2023.Recent Accounting PronouncementsSee Note 1,Summary of Significant Accounting Policies,to the consolidated financial statements included elsewhere in thisQuarterly Report on Form 10-Q.Results of OperationsRevenues Three Months EndedMarch 31,Change(Dollars in millions)20242023$%Automot
241、ive sales$16,460$18,878$(2,418)(13)%Automotive regulatory credits442 521(79)(15)%Automotive leasing476 564(88)(16)%Total automotive revenues17,378 19,963(2,585)(13)%Services and other2,288 1,837 451 25%Total automotive&services and other segment revenue19,666 21,800(2,134)(10)%Energy generation and
242、storage segment revenue1,635 1,529 106 7%Total revenues$21,301$23,329$(2,028)(9)%27Table of ContentsAutomotive&Services and Other SegmentAutomotive sales revenue decreased$2.42 billion,or 13%,in the three months ended March 31,2024 as compared to thethree months ended March 31,2023,primarily due to
243、lower average selling price on our vehicles driven by overall price reductionsyear over year.Additionally,there was a decrease of approximately 27,000 combined Model 3 and Model Y cash deliveriespartially due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and
244、 factory shutdownsresulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin-Brandenburg.Thedecreases were partially offset by an increase of approximately 7,000 deliveries of other models as we ramped our production ofCybertruck.Automotive regulatory
245、 credits revenue decreased$79 million,or 15%,in the three months ended March 31,2024 ascompared to the three months ended March 31,2023.Automotive leasing revenue decreased$88 million,or 16%,in the three months ended March 31,2024 as compared to thethree months ended March 31,2023.The decrease was p
246、rimarily due to a decrease in direct sales-type leasing revenue driven bylower deliveries year over year.Services and other revenue increased$451 million,or 25%,in the three months ended March 31,2024 as compared to thethree months ended March 31,2023.The increase was primarily due to increases in n
247、on-warranty maintenance services andcollision revenue,insurance services revenue,paid Supercharging revenue and part sales revenue.Additionally,there was higherused vehicle revenue driven by increases in volume partially offset by a decrease in average selling price of used vehicles.Energy Generatio
248、n and Storage SegmentEnergy generation and storage revenue increased$106 million,or 7%,in the three months ended March 31,2024 ascompared to the three months ended March 31,2023.The increase was primarily due to an increase in average selling price ofMegapack partially offset by a decrease in solar
249、deployments.Cost of Revenues and Gross MarginThree Months EndedMarch 31,Change(Dollars in millions)20242023$%Cost of revenuesAutomotive sales$13,897$15,422$(1,525)(10)%Automotive leasing269 333(64)(19)%Total automotive cost of revenues14,166 15,755(1,589)(10)%Services and other2,207 1,702 505 30%Tot
250、al automotive&services and other segment cost of revenues16,373 17,457(1,084)(6)%Energy generation and storage segment1,232 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 automotive18.5%21.1%Gross profit total automotive&ser
251、vices and other segment$3,293$4,343 Gross margin total automotive&services and other segment16.7%19.9%Gross profit energy generation and storage segment$403$168 Gross margin energy generation and storage segment24.6%11.0%Total gross profit$3,696$4,511 Total gross margin17.4%19.3%28Table of ContentsA
252、utomotive&Services and Other SegmentCost of automotive sales revenue decreased$1.53 billion,or 10%,in the three months ended March 31,2024 as comparedto the three months ended March 31,2023.Cost of automotive sales revenue decreased due to a decrease in the average combinedcost per unit of our vehic
253、les primarily from lower raw material costs,freight and duties in addition to the changes in deliveries yearover year as discussed.Additionally,there were higher costs for Cybertruck and the updated Model 3 at our Fremont factory as aresult of the temporary under-utilization of manufacturing capacit
254、y as production ramps.Cost of automotive leasing revenue decreased$64 million,or 19%,in the three months ended March 31,2024 as comparedto the three months ended March 31,2023.The decrease was primarily due to a decrease in direct sales-type leasing cost ofrevenue driven by lower deliveries year ove
255、r year.Cost of services and other revenue increased$505 million,or 30%,in the three months ended March 31,2024 as comparedto the three months ended March 31,2023.The increase was generally in line with the changes in services and other revenue asdiscussed above.Gross margin for total automotive decr
256、eased from 21.1%to 18.5%in the three months ended March 31,2024 as comparedto the three months ended March 31,2023.The decrease was driven by the changes in automotive sales revenue and cost ofrevenue as well as a decrease in regulatory credits revenue,as discussed above.Gross margin for total autom
257、otive&services and other segment decreased from 19.9%to 16.7%in the three months endedMarch 31,2024 as compared to the three months ended March 31,2023,primarily due to the automotive gross margin decreasediscussed above.Energy Generation and Storage SegmentCost of energy generation and storage reve
258、nue decreased$129 million,or 9%,in the three months ended March 31,2024 ascompared to the three months ended March 31,2023.The decrease was due to an increase in IRA manufacturing creditsrecognized year over year.Gross margin for energy generation and storage increased from 11.0%to 24.6%in the three
259、 months ended March 31,2024as compared to the three months ended March 31,2023.The increase was driven by the changes in energy generation and storagerevenue and cost of revenue as discussed above.Research and Development ExpenseThree Months Ended March31,Change(Dollars in millions)20242023$%Researc
260、h and development$1,151$771$380 49%As a percentage of revenues5%3%Research and development(“R&D”)expenses increased$380 million,or 49%,in the three months ended March 31,2024as compared to the three months ended March 31,2023.The overall increase was primarily driven by additional costs year overyea
261、r related to AI,advancement of our proprietary battery cell technologies and other programs.R&D expenses as a percentage of revenue increased from 3%to 5%in the three months ended March 31,2024 as comparedto the three months ended March 31,2023 as we continue to expand our product roadmap and techno
262、logies.Selling,General and Administrative ExpenseThree Months Ended March31,Change(Dollars in millions)20242023$%Selling,general and administrative$1,374$1,076$298 28%As a percentage of revenues6%5%29Table of ContentsSelling,general and administrative(“SG&A”)expenses increased$298 million,or 28%,in
263、the three months endedMarch 31,2024 as compared to the three months ended March 31,2023.This was driven by a$176 million increase in employeeand labor costs primarily from increased headcount,including professional services,a$62 million increase in facilities relatedexpenses and a$41 million increas
264、e in promotions,advertising and other marketing expenses.Interest IncomeThree Months EndedMarch 31,Change(Dollars in millions)20242023$%Interest income$350$213$137 64%Interest income increased$137 million,or 64%,in the three months ended March 31,2024 as compared to the three monthsended March 31,20
265、23.This increase was primarily due to higher interest earned on our cash and cash equivalents and short-terminvestments in the three months ended March 31,2024 as compared to the prior period due to rising interest rates and ourincreasing portfolio balance.Other Income(Expense),NetThree Months Ended
266、March 31,Change(Dollars in millions)20242023$%Other income(expense),net$108$(48)$156 NotmeaningfulOther income(expense),net,changed favorably by$156 million in the three months ended March 31,2024 as compared tothe three months ended March 31,2023.The favorable change was primarily due to fluctuatio
267、ns in foreign currency exchangerates on our intercompany balances.As our intercompany balances are significant in nature and as we do not typically hedgeforeign currency risk,we can experience significant fluctuations in foreign currency exchange rate gains and losses from period toperiod.Provision
268、for Income TaxesThree Months Ended March31,Change(Dollars in millions)20242023$%Provision for income taxes$409$261$148 57%Effective tax rate26%9%Our provision for income taxes increased by$148 million in the three months ended March 31,2024 as compared to thethree months ended March 31,2023.Our effe
269、ctive tax rate increased from 9%to 26%in the three months ended March 31,2024as compared to the 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
270、.See Note 9,Income Taxes,to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details.Liquidity and Capital ResourcesWe expect to continue to generate net positive operating cash flow as we have done in the last five fiscal years.The cash wege
271、nerate from our core operations enables us to fund ongoing operations and production,our research and development projectsfor new products and technologies including our proprietary battery cells,additional manufacturing ramps at existingmanufacturing facilities,the construction of future factories,
272、and the continued expansion of our retail and service locations,bodyshops,Mobile Service fleet,Supercharger,including to support NACS,energy product installation capabilities and autonomy andother artificial intelligence enabled products.30Table of ContentsIn addition,because a large portion of our
273、future expenditures will be to fund our growth,we expect that if needed we willbe able to adjust our capital and operating expenditures by operating segment.For example,if our near-term manufacturingoperations decrease in scale or ramp more slowly than expected,including due to global economic or bu
274、siness conditions,we maychoose to correspondingly slow the pace of our capital expenditures.Finally,we continually evaluate our cash needs and maydecide it is best to raise additional capital or seek alternative financing sources to fund the rapid growth of our business,includingthrough drawdowns on
275、 existing or new debt facilities or financing funds.Conversely,we may also from time to time determinethat it is in our best interests to voluntarily repay certain indebtedness early.Accordingly,we believe that our current sources of funds will provide us with adequate liquidity during the 12-monthp
276、eriod following March 31,2024,as well as in the long-term.See the sections below for more details regarding the material requirements for cash in our business and our sources ofliquidity to meet such needs.Material Cash RequirementsFrom time to time in the ordinary course of business,we enter into a
277、greements with vendors for the purchase of componentsand raw materials to be used in the manufacture of our products.However,due to contractual terms,variability in the precisegrowth curves of our development and production ramps,and opportunities to renegotiate pricing,we generally do not havebindi
278、ng and enforceable purchase orders under such contracts beyond the short-term,and the timing and magnitude of purchaseorders beyond such period is difficult to accurately project.As discussed in and subject to the considerations referenced in Part I,Item 2,Managements Discussion and Analysis ofFinan
279、cial Condition and Results of OperationsManagement Opportunities,Challenges and Uncertainties and 2024 OutlookCash Flow and Capital Expenditure Trends in this Quarterly Report on Form 10-Q,we currently expect our capital expenditures tosupport our projects globally to exceed$10.00 billion in 2024 an
280、d be between$8.00 to$10.00 billion in each of the following twofiscal years.We also have certain obligations in connection with our operations at Gigafactory New York and GigafactoryShanghai,as outlined in Part II,Item 7,Managements Discussion and Analysis of Financial Condition and Results of Opera
281、tionsLiquidity and Capital ResourcesMaterial Cash Requirements in our Annual Report on Form 10-K for the year endedDecember 31,2023.As of March 31,2024,we and our subsidiaries had outstanding$4.90 billion in aggregate principal amount of indebtedness,of which$2.14 billion is scheduled to become due
282、in the succeeding 12 months.For details regarding our indebtedness,refer toNote 7,Debt,to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.Sources and Conditions of LiquidityOur sources to fund our material cash requirements are predominantly from our de
283、liveries and servicing of new and usedvehicles,sales and installations of our energy storage products,interest income,and proceeds from debt facilities and equityofferings,when applicable.As of March 31,2024,we had$11.81 billion and$15.06 billion of cash and cash equivalents and short-term investmen
284、ts,respectively.Balances held in foreign currencies had a U.S.dollar equivalent of$3.47 billion and consisted primarily of Chineseyuan and euros.We had$5.00 billion of unused committed credit amounts as of March 31,2024.For details regarding ourindebtedness,refer to Note 7,Debt,to the consolidated f
285、inancial statements included elsewhere in this Quarterly Report on Form10-Q.We continue adapting our strategy to meet our liquidity and risk objectives,such as investing in U.S.government securitiesand other investments,to do more vertical integration,expand our product roadmap and provide financing
286、 options to ourcustomers.31Table of ContentsSummary of Cash Flows Three Months Ended March 31,(Dollars in millions)20242023Net 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)Cash Flows fr
287、om Operating ActivitiesNet cash provided by operating activities decreased by$2.27 billion to$242 million during the three months endedMarch 31,2024 from$2.51 billion during the three months ended March 31,2023.This decrease was primarily due to unfavorablechanges in net operating assets and liabili
288、ties of$1.19 billion and the decrease in net income excluding non-cash expenses,gainsand losses of$1.08 billion.Cash Flows from Investing ActivitiesCash flows from investing activities and their variability across each period related primarily to capital expenditures,whichwere$2.77 billion for the t
289、hree months ended March 31,2024 and$2.07 billion for the three months ended March 31,2023,mainly for global factory expansion,machinery and equipment and AI related capital expenditures as we expand or enhance ourproduct roadmap.We also purchased$2.31 billion and$411 million of short-term investment
290、s,net of proceeds from maturities,forthe three months ended March 31,2024 and 2023,respectively.Cash Flows from Financing ActivitiesNet cash from financing activities changed by$429 million to$196 million net cash provided by financing activities duringthe three months ended March 31,2024 from$233 m
291、illion net cash used in financing activities during the three months endedMarch 31,2023.The change was primarily due to a$776 million increase in proceeds from issuances of debt,partially offset by a$289 million increase in repayments of debt and a$94 million increase in payments for buy-outs of non
292、controlling interests insubsidiaries.See Note 7,Debt,to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Qfor further details regarding our debt obligations.32Table of ContentsITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKForeign Currenc
293、y RiskWe transact business globally in multiple currencies and hence have foreign currency risks related to our revenue,costs ofrevenue and operating expenses denominated in currencies other than the U.S.dollar(primarily the Chinese yuan and euro inrelation to our current year operations).In general
294、,we are a net receiver of currencies other than the U.S.dollar for our foreignsubsidiaries.Accordingly,changes in exchange rates affect our operating results as expressed in U.S.dollars as we do not typicallyhedge foreign currency risk.We have also experienced,and will continue to experience,fluctua
295、tions in our net income as a result of gains(losses)on thesettlement and the re-measurement of monetary assets and liabilities denominated in currencies that are not the local currency(primarily consisting of our intercompany and cash and cash equivalents balances).We considered the historical trend
296、s in foreign currency exchange rates and determined that it is reasonably possible thatadverse changes in foreign currency exchange rates of 10%for all currencies could be experienced in the near-term.These changeswere applied to our total monetary assets and liabilities denominated in currencies ot
297、her than our local currencies at the balancesheet date to compute the impact these changes would have had on our net income before income taxes.These changes would haveresulted in a gain or loss of$431 million at March 31,2024 and$1.01 billion at December 31,2023,assuming no foreign currencyhedging.
298、ITEM 4.CONTROLS AND PROCEDURESEvaluation of Disclosure Controls and ProceduresOur management,with the participation of our Chief Executive Officer and our Chief Financial Officer,evaluated theeffectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchang
299、e Act of 1934,asamended(the“Exchange Act”).In designing and evaluating the disclosure controls and procedures,our management recognizesthat any controls and procedures,no matter how well designed and operated,can provide only reasonable assurance of achievingthe desired control objectives.In additio
300、n,the design of disclosure controls and procedures must reflect the fact that there areresource constraints and that our management is required to apply its judgment in evaluating the benefits of possible controls andprocedures relative to their costs.Based on this evaluation,our Chief Executive Off
301、icer and our Chief Financial Officer concluded that,as of March 31,2024,our disclosure controls and procedures were designed at a reasonable assurance level and were effective to provide reasonableassurance that the information we are required to disclose in reports that we file or submit under the
302、Exchange Act is recorded,processed,summarized and reported within the time periods specified in the SEC rules and forms,and that such information isaccumulated and communicated to our management,including our Chief Executive Officer and our Chief Financial Officer,asappropriate,to allow timely decis
303、ions regarding required disclosures.Changes in Internal Control over Financial ReportingThere was no change in our internal control over financial reporting that occurred during the quarter ended March 31,2024,which has materially affected,or is reasonably likely to materially affect,our internal co
304、ntrol over financial reporting.33Table of ContentsPART II.OTHER INFORMATIONITEM 1.LEGAL PROCEEDINGSFor a description of our material pending legal proceedings,please see Note 10,Commitments and Contingencies,to theconsolidated financial statements included elsewhere in this Quarterly Report on Form
305、10-Q.In addition,each of the matters below is being disclosed pursuant to Item 103 of Regulation S-K because it relates toenvironmental regulations and aggregate civil penalties that we currently believe could potentially exceed$1 million.We believethat any proceeding that is material to our busines
306、s or financial condition is likely to have potential penalties far in excess of suchamount.District attorneys in certain California counties conducted an investigation into Teslas waste segregation practices.In February 2024,the Superior Court of California for the County of San Joaquin entered a st
307、ipulated judgment as agreed to by allparties to settle this matter.As part of the settlement terms,Tesla agreed to certain practices with respect to our waste managementactivities and payment of approximately$1.5 million in civil penalties and fees.ITEM 1A.RISK FACTORSOur operations and financial re
308、sults are subject to various risks and uncertainties,including the factors discussed in Part I,Item 1A,Risk Factors in our Annual Report on Form 10-K for the year ended December 31,2023,which could adversely affectour business,financial conditions and future results.ITEM 2.UNREGISTERED SALES OF EQUI
309、TY SECURITIES AND USE OF PROCEEDSNone.ITEM 3.DEFAULTS UPON SENIOR SECURITIESNone.ITEM 4.MINE SAFETY DISCLOSURESNot applicable.ITEM 5.OTHER INFORMATIONNone of the Companys directors or officers adopted,modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement d
310、uring the Companys fiscal quarter ended March 31,2024,as such terms are defined under Item408(a)of Regulation S-K,except as follows:On February 5,2024,Kathleen Wilson-Thompson,one of our directors,adopted a Rule 10b5-1 trading arrangement for thepotential sale of up to 280,000 shares of our common s
311、tock,subject to certain conditions.The arrangements expiration date isFebruary 28,2025.34Table of ContentsITEM 6.EXHIBITSSee Index to Exhibits at the end of this Quarterly Report on Form 10-Q for the information required by this Item.INDEX TO EXHIBITSExhibitNumber Incorporated by ReferenceFiledHerew
312、ithExhibit DescriptionFormFile No.ExhibitFiling Date31.1Rule 13a-14(a)/15(d)-14(a)Certification ofPrincipal Executive OfficerX31.2Rule 13a-14(a)/15(d)-14(a)Certification ofPrincipal Financial OfficerX32.1*Section 1350 Certifications 101.INSInline XBRL Instance DocumentX101.SCHInline XBRL Taxonomy Ex
313、tension SchemaDocumentX101.CALInline XBRL Taxonomy Extension CalculationLinkbase Document.X101.DEFInline XBRL Taxonomy Extension DefinitionLinkbase DocumentX101.LABInline XBRL Taxonomy Extension Label LinkbaseDocumentX101.PREInline XBRL Taxonomy Extension PresentationLinkbase DocumentX104Cover Page
314、Interactive Data File(formatted as inlineXBRL with applicable taxonomy extensioninformation contained in Exhibits 101)*Furnished herewith Portions of this exhibit have been redacted in compliance with Regulation S-K Item 601(b)(10)(iv)35Table of ContentsSIGNATURESPursuant to the requirements of Sect
315、ion 13 or 15(d)the Securities Exchange Act of 1934,the registrant has duly causedthis report to be signed on its behalf by the undersigned,thereunto duly authorized.Tesla,Inc.Date:April 23,2024/s/Vaibhav TanejaVaibhav TanejaChief Financial Officer(Principal Financial Officer andDuly Authorized Officer)36