K id

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 001-34756

Tesla, Inc.

(Exact name of registrant as specified in its charter)

Delaware	91-2197729
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1 Tesla Road Austin, Texas	78725
(Address of principal executive offices)	(Zip Code)

(512) 516-8177

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	TSLA	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (“Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 17, 2023, there were 3,169,504,301 shares of the registrant’s common stock outstanding.

TESLA, INC.

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2023

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	4
	Consolidated Balance Sheets	4
	Consolidated Statements of Operations	5
	Consolidated Statements of Comprehensive Income	6
	Consolidated Statements of Redeemable Noncontrolling Interests and Equity	7
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31
Item 4.	Controls and Procedures	31
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	32
Signatures		34

Forward-Looking Statements

The discussions in this Quarterly Report on Form 10-Q contain forward-looking statements reflecting our current expectations that involve risks and uncertainties. These forward-looking statements include, but are not limited to, statements concerning any potential future impact of the coronavirus disease (“COVID-19”) pandemic on our business, supply chain 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 our technologies, growth opportunities and trends in the markets in which we operate, prospects and plans and objectives of management. 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-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the risks set forth in Part I, Item 1A, “Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and that are otherwise described or updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”). We do not assume any obligation to update any forward-looking statements.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Tesla, Inc.

Consolidated Balance Sheets

(in millions, except per share data)

(unaudited)

	March 31,			December 31,
	2023			2022
Assets
Current assets
Cash and cash equivalents	$	16,048		$	16,253
Short-term investments		6,354			5,932
Accounts receivable, net		2,993			2,952
Inventory		14,375			12,839
Prepaid expenses and other current assets		3,227			2,941
Total current assets		42,997			40,917
Operating lease vehicles, net		5,473			5,035
Solar energy systems, net		5,427			5,489
Property, plant and equipment, net		24,969			23,548
Operating lease right-of-use assets		2,800			2,563
Digital assets, net		184			184
Intangible assets, net		204			215
Goodwill		195			194
Other non-current assets		4,584			4,193
Total assets	$	86,833		$	82,338
Liabilities
Current liabilities
Accounts payable	$	15,904		$	15,255
Accrued liabilities and other		7,321			7,142
Deferred revenue		1,750			1,747
Customer deposits		1,057			1,063
Current portion of debt and finance leases		1,404			1,502
Total current liabilities		27,436			26,709
Debt and finance leases, net of current portion		1,272			1,597
Deferred revenue, net of current portion		2,911			2,804
Other long-term liabilities		5,979			5,330
Total liabilities		37,598			36,440
Commitments and contingencies (Note 9)
Redeemable noncontrolling interests in subsidiaries		407			409
Equity
Stockholders’ equity
Preferred stock; $0.001 par value; 100 shares authorized;     no shares issued and outstanding		—			—
Common stock; $0.001 par value; 6,000 shares authorized;     3,169 and 3,164 shares issued and outstanding as of     March 31, 2023 and December 31, 2022, respectively		3			3
Additional paid-in capital		32,878			32,177
Accumulated other comprehensive (loss)		(225	)		(361	)
Retained earnings		15,398			12,885
Total stockholders’ equity		48,054			44,704
Noncontrolling interests in subsidiaries		774			785
Total liabilities and equity	$	86,833		$	82,338

The accompanying notes are an integral part of these consolidated financial statements.

4

Tesla, Inc.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

	Three Months Ended March 31,
	2023			2022
Revenues
Automotive sales	$	18,878		$	15,514
Automotive regulatory credits		521			679
Automotive leasing		564			668
Total automotive revenues		19,963			16,861
Energy generation and storage		1,529			616
Services and other		1,837			1,279
Total revenues		23,329			18,756
Cost of revenues
Automotive sales		15,422			10,914
Automotive leasing		333			408
Total automotive cost of revenues		15,755			11,322
Energy generation and storage		1,361			688
Services and other		1,702			1,286
Total cost of revenues		18,818			13,296
Gross profit		4,511			5,460
Operating expenses
Research and development		771			865
Selling, general and administrative		1,076			992
Total operating expenses		1,847			1,857
Income from operations		2,664			3,603
Interest income		213			28
Interest expense		(29	)		(61	)
Other (expense) income, net		(48	)		56
Income before income taxes		2,800			3,626
Provision for income taxes		261			346
Net income		2,539			3,280
Net income (loss) attributable to noncontrolling    interests and redeemable noncontrolling interests    in subsidiaries		26			(38	)
Net income attributable to common stockholders	$	2,513		$	3,318
Net income per share of common stock    attributable to common stockholders (1)
Basic	$	0.80		$	1.07
Diluted	$	0.73		$	0.95
Weighted average shares used in computing net    income per share of common stock (1)
Basic		3,166			3,103
Diluted		3,468			3,472

(1)Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in August 2022.

The accompanying notes are an integral part of these consolidated financial statements.

5

Tesla, Inc.

Consolidated Statements of Comprehensive Income

(in millions)

(unaudited)

	Three Months Ended March 31,
	2023		2022
Net income	$	2,539	$	3,280
Other comprehensive income (loss):
Foreign currency translation adjustment		130		(96	)
Unrealized net gain (loss) on investments		6		(8	)
Comprehensive income		2,675		3,176
Less: Comprehensive income (loss) attributable to    noncontrolling interests and redeemable    noncontrolling interests in subsidiaries		26		(38	)
Comprehensive income attributable to    common stockholders	$	2,649	$	3,214

The accompanying notes are an integral part of these consolidated financial statements.

6

Tesla, Inc.

Consolidated Statements of Redeemable Noncontrolling Interests and Equity

(in millions, except per share data)

(unaudited)

										Accumulated
	Redeemable							Additional		Other					Total		Noncontrolling
	Noncontrolling			Common Stock				Paid-In		Comprehensive			Retained		Stockholders’		Interests in			Total
Three Months Ended March 31, 2023	Interests			Shares		Amount		Capital		(Loss)			Earnings		Equity		Subsidiaries			Equity
Balance as of December 31, 2022	$	409			3,164	$	3	$	32,177	$	(361	)	$	12,885	$	44,704	$	785		$	45,489
Exercises of conversion feature of    convertible senior notes		—			0		0		0		—			—		0		—			0
Issuance of common stock for equity    incentive awards		—			5		0		231		—			—		231		—			231
Stock-based compensation		—			—		—		465		—			—		465		—			465
Distributions to noncontrolling interests		(5	)		—		—		—		—			—		—		(22	)		(22	)
Buy-outs of noncontrolling interests		—			—		—		5		—			—		5		(12	)		(7	)
Net income		3			—		—		—		—			2,513		2,513		23			2,536
Other comprehensive income		—			—		—		—		136			—		136		—			136
Balance as of March 31, 2023	$	407			3,169	$	3	$	32,878	$	(225	)	$	15,398	$	48,054	$	774		$	48,828

											Accumulated
	Redeemable							Additional			Other					Total			Noncontrolling
	Noncontrolling			Common Stock				Paid-In			Comprehensive			Retained		Stockholders’			Interests in			Total
Three Months Ended March 31, 2022	Interests			Shares (1)		Amount (1)		Capital			Income (Loss)			Earnings (1)		Equity			Subsidiaries			Equity
Balance as of December 31, 2021	$	568			3,100	$	3	$	29,803		$	54		$	329	$	30,189		$	826		$	31,015
Exercises of conversion feature of    convertible senior notes		—			0		0		0			—			—		0			—			0
Issuance of common stock for equity    incentive awards		—			8		0		202			—			—		202			—			202
Stock-based compensation		—			—		—		485			—			—		485			—			485
Distributions to noncontrolling interests		(12	)		—		—		—			—			—		—			(22	)		(22	)
Buy-out of noncontrolling interests		(1	)		—		—		(5	)		—			—		(5	)		—			(5	)
Net (loss) income		(96	)		—		—		—			—			3,318		3,318			58			3,376
Other comprehensive loss		—			—		—		—			(104	)		—		(104	)		—			(