Tesla Motors Inc equity, debt and subsidiaries

Accuracy score :
97%

Summary (from the latest annual and quarterly report)

  • Total equity: 4.60 billion USD
  • Market Cap is 34.60 billion USD ( the last price of the stock is 194.06 USD)
  • Tesla Motors Inc designs, develops, manufactures and sells high-performance fully electric vehicles and electric vehicle powertrain components. Tesla also manufactures equipment for home and office battery charging, and has installed a network of high-powered Superchargers across North America, Europe and Asia
  • Total stockholders' equity has decreased from 4.75 billion USD in 2016 to 4.6 billion in 2019
  • The company has 2.19 billion USD in cash on account (from the latest quarterly report  2019)
  • Total equity – cash on account = 4.60 billion USD – 2.19 billion USD = 2.41 billion USD
  • In 2019 the company has 9.78 billion USD long-term debt, short – term debt is 1.70 billion USD                                                        (In 2017 the company had 9.41 billion USD long-term debt, short-term debt was 897 million USD)
  • The company's revenue has increased in 2018 to 21.46 billion USD from 11.75 billion in 2017
  • Net loss in 2018 was 976 million USD, Net loss in 2017 was 1.96 billion USD

 

Opinion about the company

Fundamentally it is a not good company  ( the company operates with a net loss, Total debt is 11.48 billion USD), the company has 2.19 billion USD in cash on account, ROE is negative: around - 21 %).

Tesla Inc is a vertically integrated sustainable energy company. It designs, develops, manufactures and sells high-performance fully electric vehicles and electric vehicle powertrain components. Its products include electric vehicles such as the Model S, Model X, Model 3 and the Tesla Roadster. Tesla also intends to bring additional all-electric vehicles to market in the future, including Model Y, the Tesla Semi truck, a pickup truck and a new version of the Tesla Roadster . The company sells its vehicles through own sales and service network which they are continuing to grow globally. The benefits Tesla receives from distribution ownership enable this company to improve the overall customer experience, the speed of product development and the capital efficiency of its business. Tesla sells and leases solar energy systems (with or without accompanying energy storage systems) to residential and commercial customers and sell renewable energy to residential and commercial customers at prices that are typically below utility rates. Since 2006, Tesla has installed solar energy systems for hundreds of thousands of customers. However, the electricity produced by its solar installations represents a very small fraction of total U.S. electricity generation. With tens of millions of single-family homes and businesses in its primary service territories, and many more in other locations, Tesla has a large opportunity to expand and grow this business.

Tesla designs its battery packs to achieve high energy density at a low cost while also maintaining safety, reliability and long life. Its proprietary technology includes systems for high-density energy storage, cooling, safety, charge balancing, structural durability, and electronics management. Musk has said that batteries could be as big of a business as cars in the future. As Tesla continues to improve its battery technology, reducing costs and improve supply (as Gigafactory 1 output ramps), revenue from energy storage will continue to grow exponentially going forward. Tesla manufactures its vehicle products primarily at its facilities in Fremont, California, Lathrop, California, Tilburg, Netherlands and at our Gigafactory 1 near Reno, Nevada. Tesla manufactures its energy storage products at Gigafactory 1 and Tesla solar products at its U.S. facilities including in Buffalo, New York (Gigafactory 2). In January 2019, Tesla began construction of its Gigafactory Shanghai in China, where the company intends to commence production of certain trims of Model 3 for the local market by the end of 2019.

  • Automotive sales represent 86% of the total revenues
  • Services segment represents 6.5% of the total revenues
  • Energy generation and storage represent 7.5% of the total revenues
  • Automotive sales revenue increased $9.10 billion, or 107%, in the year ended December 31, 2018 as compared to the year ended December 31, 2017, primarily due to an increase of approximately 144,330 Model 3

Tesla is also continuing to build its network of Superchargers and Destination Chargers in North America, Europe and Asia to provide alternative convenient options for fast charging.

Tesla Supercharger

The Tesla Supercharger network is a system of 480-volt DC fast-charging stations built by Tesla Inc. to allow longer journeys for their all-electric manufactured vehicles (Model S, 3 and X), through quick charging of the vehicle's battery packs. Tesla began building the network in 2012. In October 2014, there were 119 standard Tesla Supercharger stations operating in the United States, 76 in Europe, and 26 in Asia. As of May 2019, there were 1,441 stations globally, with 12,888 chargers.  Most Superchargers are owned by Tesla, but some are owned by fleet operators to charge their Tesla cars, such as taxis. Tesla began 2017 with 5,000 Superchargers around the world and Tesla would have to make considerable investments — costing up to billions of dollars in expanding its charger network as its fleet grows. The Supercharger is a proprietary direct current (DC) technology that provides up to 120 kW of power per car (depending on circumstances), giving the 90 kWh Model S an additional 170 miles (270 km) of range in about 30 minutes charge and a full charge in around 75 minutes. A software update provided in 2015 to all Tesla cars uses demand information from each Supercharger station to plan the fastest route, if charging will be necessary to reach the destination.

Standalone subsidiaries and acquisitions:

  • In 2015 Tesla acquired Michigan parts supplier Riviera Tool for an undisclosed amount
  • Riviera Tool has 100 employees and worth 50 million USD
  • In 2016, Tesla completed its 2.6 billion USD acquisition of SolarCity
  • On January 3, 2017, Tesla completed the acquisition of Grohmann Engineering GmbH (now Tesla Grohmann Automation GmbH or “Grohmann”), which specializes in the design, development and sale of automated manufacturing systems, for 109.5 million USD in cash
  • Tesla has spent somewhere between 500 million and one billion dollars (Tesla has not provided exact numbers) and needs to spend $billions more on a still-growing network of high-powered charging stations they have named "Superchargers".

 

Total = 3.5 billion USD

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