Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Disaggregation of Revenue by Major Source

The following table disaggregates our revenue by major source (in millions):

	Year Ended December 31,
	2021		2020		2019
Automotive sales without resale value guarantee	$	43,186	$	24,053	$	19,212
Automotive sales with resale value guarantee (1)		939		551		146
Automotive regulatory credits		1,465		1,580		594
Energy generation and storage sales		2,279		1,477		1,000
Services and other		3,802		2,306		2,226
Total revenues from sales and services		51,671		29,967		23,178
Automotive leasing		1,642		1,052		869
Energy generation and storage leasing		510		517		531
Total revenues	$	53,823	$	31,536	$	24,578

(1)Pricing adjustments on our vehicle offerings can impact the estimate of likelihood that customers would exercise their resale value guarantees, resulting in an adjustment of our sales return reserve on vehicles sold with resale value guarantees. Actual return rates being lower than expected and increases in resale values of our vehicles in 2021 resulted in a net release of our reserve of $365 million, which represented an increase in automotive sales revenue. For the years ended December 31, 2020 and 2019, vehicle pricing reductions resulted in an increase of our reserve of $72 million and $555 million, respectively, which represented decreases in automotive sales revenue.

Schedule of Deferred Revenue Activity

Deferred revenue activity related to the access to our Supercharger network, internet connectivity, FSD features and over-the-air software updates on automotive sales with and without resale value guarantee consisted of the following (in millions):

	Year ended December 31,
	2021			2020
Deferred revenue on automotive sales with and without    resale value guarantee— beginning of period	$	1,926		$	1,472
Additions		847			724
Net changes in liability for pre-existing contracts		(25	)		56
Revenue recognized		(366	)		(326	)
Deferred revenue on automotive sales with and without    resale value guarantee— end of period	$	2,382		$	1,926

Schedule of Reconciliation of Net Income (Loss) Used in Computing Basic and Diluted Net Income (Loss) Per Share of Common Stock and Basic to Diluted Weighted Average Shares Used in Computing Net Income Per Share of Common Stock

The following table presents the reconciliation of net income (loss) attributable to common stockholders to net income (loss) used in computing basic and diluted net income (loss) per share of common stock (in millions):

	Year Ended December 31,
	2021			2020		2019
Net income (loss) attributable to common stockholders	$	5,519		$	721	$	(862	)
Less: Buy-out of noncontrolling interest		(5	)		31		8
Net income (loss) used in computing basic net    income (loss) per share of common stock		5,524			690		(870	)
Less: Dilutive convertible debt		(9	)		—		—
Net income (loss) used in computing diluted net    income (loss) per share of common stock	$	5,533		$	690	$	(870	)

The following table presents the reconciliation of basic to diluted weighted average shares used in computing net income (loss) per share of common stock attributable to common stockholders (in millions):

	Year Ended December 31,
	2021		2020		2019
Weighted average shares used in computing    net income (loss) per share of common stock, basic		986		933		887
Add:
Stock-based awards		98		66		—
Convertible senior notes (1)		10		47		—
Warrants		35		37		—
Weighted average shares used in computing    net income (loss) per share of common stock, diluted		1,129		1,083		887

Schedule of Potentially Dilutive Shares that were Excluded from Computation of Diluted Net Income (Loss) per Share of Common Stock

The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income (loss) per share of common stock attributable to common stockholders, because their effect was anti-dilutive (in millions):

	Year Ended December 31,
	2021		2020		2019
Stock-based awards		0		2		50
Convertible senior notes (1)		—		1		5

Under the modified retrospective method of adoption of ASU 2020-06, the dilutive impact of convertible senior notes was calculated using the if-converted method for the year ended December 31, 2021. Certain convertible senior notes were calculated using the treasury stock method for the years ended December 31, 2020 and 2019. Refer to discussion above for further details.

Schedule of Cash and Cash Equivalents and Restricted Cash

Our total cash and cash equivalents and restricted cash, as presented in the consolidated statements of cash flows, was as follows (in millions):

	December 31,		December 31,		December 31,
	2021		2020		2019
Cash and cash equivalents	$	17,576	$	19,384	$	6,268
Restricted cash included in prepaid expenses and other    current assets		345		238		246
Restricted cash included in other non-current assets		223		279		269
Total as presented in the consolidated statements of cash flows	$	18,144	$	19,901	$	6,783

Estimated Useful Lives of Respective Assets

Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the respective assets, as follows:

Solar energy systems in service	30 to 35 years
Initial direct costs related to customer    solar energy system lease acquisition    costs	Lease term (up to 25 years)

Schedule of Estimated Useful Lives of Related Assets

Property, plant and equipment, net, including leasehold improvements, are recognized at cost less accumulated depreciation. Depreciation is generally computed using the straight-line method over the estimated useful lives of the respective assets, as follows:

Machinery, equipment, vehicles and    office furniture	3 to 15 years
Tooling	4 to 7 years
Building and building improvements	15 to 30 years
Computer equipment and software	3 to 10 years

Schedule of Accrued Warranty Activity

Accrued warranty activity consisted of the following (in millions):

	Year Ended December 31,
	2021			2020			2019
Accrued warranty—beginning of period	$	1,468		$	1,089		$	748
Warranty costs incurred		(525	)		(312	)		(250	)
Net changes in liability for pre-existing warranties,    including expirations and foreign exchange impact		102			66			36
Provision for warranty		1,056			625			555
Accrued warranty—end of period	$	2,101		$	1,468		$	1,089

Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption of New Lease Standard

Accordingly, the cumulative effect of the changes made on our January 1, 2021 consolidated balance sheet for the adoption of the ASU was as follows (in millions):

	Balances at December 31, 2020			Adjustments from Adoption of ASU 2020-06			Balances at January 1, 2021
Assets
Property, plant and equipment, net	$	12,747		$	(45	)	$	12,702
Liabilities
Current portion of debt and finance leases		2,132			50			2,182
Debt and finance leases, net of current portion		9,556			219			9,775
Mezzanine equity
Convertible senior notes		51			(51	)		—
Equity
Additional paid-in capital		27,260			(474	)		26,786
Accumulated deficit		(5,399	)		211			(5,188	)