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January 17, 2014

Price
$170.97

Rating
OUTPERFORM


12-Month Price Target
$205



Craig Irwin
(212) 938-9926
craig.irwin@wedbush.com

Min Xu
(212) 938-9925
min.xu@wedbush.com


Company Information
Shares Outst (M) 137.1
Market Cap (M) $23,445
52-Wk Range $33.80 - $194.50
Book Value/sh $4.63
Cash/sh $5.38
Enterprise Value (M) $23,231
LT Debt/Cap % 51%


Company Description
Tesla Motors Inc., based in Palo Alto, CA, is
a pure electric vehicle (EV) manufacturer
looking to smash the automotive industry
paradigm that a tradeoff exists between
vehicle performance and efficiency.


Tesla Motors (TSLA)
Management Meetings with Tesla; OUTPERFORM
• We hosted investor meetings with management from Tesla and came away
with further confidence in our constructive thesis.
• Tesla’s 4Q13 deliveries upside of around 1,000 units versus our prior
estimate was driven primarily by increased battery availability from
Panasonic, as well as a material improvement in direct-run vehicles. Vehicle
ASPs may have seen sequential support from the mix possibly leaning towards
more heavily optioned vehicles, where Tesla could even have seen Q/Q strength.
We believe Panasonic is likely prioritizing deliveries to Tesla over other customers
now that Tesla is the world’s largest customer for lithium ion batteries. Direct-run
vehicles, or cars that have zero rework or defects through the entire manufacturing
process, are likely reaching best achievable levels and impressive efficiencies.
• We believe the recent constraints that Panasonic’s available production
capacity have presented are likely to be resolved by 2H14 when shuttered
capacity is likely to be re-commissioned to produce batteries for Tesla. The
cost-out roadmap of a mid- to high-single-digit percent reduction in annual battery
costs should support a continued tailwind for 2014 Model S gross margins.
• The 1Q14 outlook should reflect the number of units in transit to China,
which we believe is one of Tesla’s most exciting target markets.
• We see increasing potential Tesla could add another Model S production line
in 2014 to serve what the company describes as robust demand.
• On the 4Q13 call, we expect Tesla to give additional details on its plan for a
battery giga-factory, which Tesla likely will build in a partnership agreement.
• We reiterate our OUTPERFORM rating and $205 price target. Our target is
based on 30.0x 2017E EPS of $10.00, discounting back four years using a 10.0%
discount rate. We believe valuation based on 2017 estimates is appropriate as that
is the first year Gen-III volumes are expected to scale, and view a 30.0x EPS
multiple as fair since Tesla should still be doubling earnings at that point.
• We see strong positives in Tesla's credible path to longer-term battery cost
reduction and the Gen-III vehicle target costs, and what we believe will be a
receptive buying public willing to purchase EV's while retaining reasonable
expectations for these vehicles. Tesla's multi-year lead over credible competition
suggests the company is well positioned to deliver an aggressive volume ramp.


FYE Dec 2012A 2013E 2014E
REV (M) ACTUAL CURR. PREV. CONS. CURR. PREV. CONS.
Q1 Mar $30.2A $561.8A -- $636.4E $661.4E
Q2 Jun $26.7A $552.0A -- $685.0E $703.1E
Q3 Sep $50.1A $602.6A -- $694.5E $799.4E
Q4 Dec $306.3A $710.0E $638.5E $970.0E $950.7E
Year* $413.3A $2,426.3E $2,363E $2,985.9E $3,192E
Change 102.3% 487.1% 23.1%
2012A 2013E 2014E
EPS ACTUAL CURR. PREV. CONS. CURR. PREV. CONS.
Q1 Mar -$0.76A $0.12A -- $0.14E $0.25E
Q2 Jun -0.89A 0.20A -- 0.20E $0.32E
Q3 Sep -0.92A 0.12A -- 0.26E $0.41E
Q4 Dec -0.65A 0.28E $0.16E 0.75E $0.58E
Year* -$3.21A $0.73E $0.58E $1.35E $1.53E
P/E nmx 234.4x 126.7x
Change nm nm 84.9%
Consensus estimates are from Thomson First Call.
* Numbers may not add up due to rounding.


Source: Thomson Reuters





Craig Irwin (212) 938-9926
Tesla Motors | 2

• Risks to the achievement of our price target include the potential for sales volumes below expectations or for profitability on
company vehicle sales to miss targets. In the longer-term, we see the most significant risks coming from possible cost
escalation in the Gen III vehicle platform and risks of continued push-outs in Panasonic's advanced battery technologies
possibly resulting in slower-than-expected improvement in battery costs and performance.

VALUATION

Figure 1: Rolling Forward 12-Month Price to Y2 Revenue

Source: ThomsonONE and Wedbush Securities, Inc.

Figure 2: PWR Relative Performance vs. Russell 1000
(100%)
0%
100%
200%
300%
400%
500%
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14
1 Years-To-Date Price Performance vs. Russell 1000
TSLA return 1YTD
RUI-E return 1YTD
TSLA 1YTD Rel Performance

Source: ThomsonONE and Wedbush Securities, Inc.



Figure 3: Automotive and EV and High Growth Comparable Company Valuations
Fiscal 16-Jan-14 US$
Ticker Rating Year Price Mkt Cap 2014E 2015E 2014E 2015E 2014E 2015E
Automakers
Toyota Motor Corp. (Tokyo) 7203-TO -- Mar $59.48 $205,080 0.8x 0.7x 9.8x 9.0x 9.3x 8.6x
Honda Motor Co., Ltd. (Tokyo) 7267-TO -- Mar $39.73 $71,960 0.6x 0.5x 8.7x 8.2x 8.6x 7.5x
Daimler AG (Frankf urt) DAI-XE -- Dec $89.14 $95,360 0.6x 0.5x 11.5x 9.8x 8.9x 8.1x
Ford Motor Co. F -- Dec $16.73 $65,990 0.5x 0.5x 11.6x 8.0x 14.9x 11.1x
BMW AG (Franf urt) BMW-XE -- Dec $116.29 $70,008 0.6x 0.6x 10.0x 10.0x 8.5x 8.0x
General Motors Co GM -- Dec $39.00 $54,170 0.3x 0.3x 8.9x 7.8x 3.7x 4.0x
Audi AG (Frankf urt) NSU-XE -- Dec $881.38 $15,336 0.2x 0.2x 6.8x 6.5x n/m n/m
AVERAGE 0.5x 0.5x 9.6x 8.5x 9.0x 7.9x
Drivetrain Electrification and High Growth Companies
Cree Inc. CREE O Jun $63.87 $7,815 4.2x 3.5x 28.6x 25.5x 12.8x 12.0x
BYD Co LTD (Hong Kong) 1211-HK -- Dec $4.76 $3,774 0.2x 0.3x 33.1x 41.0x 5.8x 5.2x
Polypore International Inc PPO N Dec $38.57 $1,810 2.5x n/a 19.3x n/a 10.8x n/a
Universal Display Corp OLED N Dec $34.31 $1,599 7.7x 5.9x 29.9x 16.7x 16.3x n/a
Saf t Batteries (Paris) SAFT-FR -- Dec $35.40 $915 1.0x 0.9x 16.9x 14.0x 7.5x 6.7x
Aerovironment, Inc. AVAV -- Apr $30.06 $682 2.7x 2.5x n/m 38.5x 21.1x 14.9x
AVERAGE 3.1x 2.6x 25.5x 27.1x 12.4x 9.7x
Tesla Motors, Inc. TSLA O Dec $170.97 $23,445 7.9x 6.9x n/m n/m n/m n/m
S&P 500 .SPX-UT Dec $1,846 16.1x 16.8x
Note: All estimates are calendarized; n/a = not available, n/m = >45 or <0 and not meaningful
EV/EBITDA P/REV P/EPS

Source: ThomsonONE, and Wedbush Securities, Inc.




Craig Irwin (212) 938-9926
Tesla Motors | 3



FINANCIALS

Figure 4: Tesla Motors, Inc. Income Statement
Craig Irwin (212) 938-9926 craig.irwin@wedbush.com
Tesla Motors - Income Statement
(YEDec-31; $mm) 2010 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13 3Q13 4Q13E 2013E 2014E 2015E 2016F 2017F
Automotive Revenue 97.1 148.6 19.2 22.1 50.0 294.4 385.7 555.0 401.5 430.2 484.1 1,870.9 1,919.2 2,025.0 3,240.0 6,000
Development Services 19.7 55.7 10.9 4.6 0.1 12.0 27.6 6.6 3.6 1.2 5.0 16.3 20.0 20.0 21.0 22.0
Total Revenue 116.7 204.2 30.2 26.7 50.1 306.3 413.3 561.8 405.1 431.3 489.1 1,887.2 1,939.2 2,045.0 3,261.0 6,022
Operating Expenses:
Cost of Sales 86.0 142.6 20.0 21.9 58.9 282.5 383.2 465.5 304.7 328.5 364.4 1,463.0 1,444.7 1,533.8 2,453.9 4,576.7
R&D 93.0 209.0 68.4 74.9 61.9 68.8 274.0 54.9 52.3 56.4 70.4 234.0 288.9 285.0 315.0 350.0
SG&A 84.6 104.1 30.6 36.1 37.8 45.9 150.4 47.0 60.0 77.1 92.5 276.6 358.0 290.0 300.0 350.0
Operating Income (146.8) (251.5) (88.8) (106.2) (108.5) (90.9) (394.3) (5.6) (11.8) (30.6) (38.2) (86.3) (152.4) (63.8) 192.1 745.3
Interest, (Net) (0.7) 0.2 0.0 (0.0) (0.0) 0.1 0.0 (0.1) (20.1) (6.4) 0.8 (25.8) 4.0 (3.0) - -
Other, (Net) (6.6) (2.6) (1.1) 0.7 (2.2) 0.7 (1.8) 17.1 1.7 (0.7) - 18.0 - - - -
EBT (154.2) (253.9) (89.8) (105.5) (110.7) (90.1) (396.1) 11.4 (30.2) (37.7) (37.4) (94.1) (148.4) (66.8) 192.1 745.3
Income Taxes 0.2 0.5 0.1 0.1 0.1 (0.1) 0.1 0.2 0.3 0.8 0.3 1.5 1.2 10.5 11.5 40.0
Tax Rate 0% 0% 0% 0% 0% 0% 0% 1% -1% -2% -1% -2% -1% -16% 6% 5%
Net Income (154.3) (254.4) (89.9) (105.6) (110.8) (89.9) (396.2) 11.2 (30.5) (38.5) (37.7) (95.6) (149.6) (77.3) 180.6 705.3
EPS ($3.06) ($2.53) ($0.86) ($1.00) ($1.05) ($0.79) ($3.69) $0.09 ($0.26) ($0.32) ($0.27) ($0.76) ($1.06) ($0.53) $1.21 $4.60
Non-GAAP EPS (2.54) $ (2.22) $ (0.76) $ (0.89) $ (0.92) $ (0.65) $ (3.21) $ 0.12 $ 0.20 $ 0.12 $ 0.28 $ 0.73 $ 1.35 $ 1.95 $ 4.50 $ 10.00 $
Basic Shares 50.4 100.4 104.8 105.2 105.6 106.5 105.5 114.7 118.2 121.9 139.0 123.4 141.5
Diluted Shares 50.4 100.4 104.8 105.2 105.6 113.8 107.3 124.3 118.2 121.9 139.0 125.8 141.5 145.4 149.4 153.4
As a % of Revenue
Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Gross Prof it 26.3% 30.2% 33.8% 17.9% (17.5%) 7.8% 7.3% 17.1% 24.8% 23.8% 25.5% 22.5% 25.5% 25.0% 24.8% 24.0%
R&D 79.7% 102.3% 226.7% 280.8% 123.5% 22.5% 66.3% 9.8% 12.9% 13.1% 14.4% 12.4% 14.9% 13.9% 9.7% 5.8%
SG&A 72.4% 51.0% 101.4% 135.4% 75.4% 15.0% 36.4% 8.4% 14.8% 17.9% 18.9% 14.7% 18.5% 14.2% 9.2% 5.8%
Depreciation 9.1% 8.3% 13.8% 16.3% 15.0% 4.2% 7.0% 3.2% 5.5% 6.6% 3.3% 4.5% 4.6% 4.6% 4.6% 4.6%
Operating Prof it (125.8%) (123.1%) (294.2%) (398.4%) (216.5%) (29.7%) (95.4%) (1.0%) (2.9%) (7.1%) (7.8%) (4.6%) (7.9%) (3.1%) 5.9% 12.4%
GAAP to Non-GAAP Reconciliation:
Lease Accounting Def erred Revenue - - - - - - - - 146.8 171.2 220.9 538.9 1,046.7 1,350.0 2,160.0 4,000.0
Non-GAAP Revenue - 204.2 30.2 26.7 50.1 306.3 413.3 561.8 552.0 602.6 710.0 2,426 2,986 3,395 5,421 10,022
Lease Accounting Def erred Profit - - - - - - - - 19.3 28.7 55.2 103.3 248.5 280.8 407.2 738.0
Non-GAAP Gross Profit - 62.3 10.2 4.8 (8.3) 25.5 32.3 97.9 120.9 134.6 183.0 536.2 755.9 803.3 1,226.2 2,195.9
Def erred Gross Margin - - - - - - - - 13.2% 16.8% 25.0% 19.2% 23.7% 20.8% 18.9% 18.5%
Non-GAAPGross Margin - - - - - - - - 21.9% 22.3% 25.8% 22.1% 25.3% 23.7% 22.6% 21.9%
GAAPNet Income (154.3) (254.4) (89.9) (105.6) (110.8) (89.9) (396.2) 11.2 (30.5) (38.5) (37.7) (95.6) (149.6) (77.3) 180.6 705.3
Cost of Sales 0.2 0.7 0.0 0.1 0.5 1.6 2.2 1.5 1.1 3.0 3.1 8.7 12.9 11.3 12.0 12.7
R&D 4.1 13.4 5.9 7.1 6.4 7.2 26.6 7.6 8.6 8.7 8.9 33.8 37.3 32.5 34.5 36.6
SG&A 16.8 15.4 4.8 5.3 5.6 5.6 21.4 5.7 9.6 9.7 9.9 34.9 41.7 36.3 38.5 40.8
Total Stock Based Comp 21.2 29.4 10.7 12.5 12.5 14.4 50.1 14.9 19.3 21.4 21.9 77.4 91.9 80.0 85.0 90.0
Change in Fair Value of Warrants 5.0 2.3 (0.2) (0.2) 1.2 1.0 1.9 (10.7) - - - (10.7) - - - -
Non-Cash Interest to Converts - - - - - - - - 1.8 4.3 - 6.1 - - - -
Others - - - - - - - - 16.4 - - 16.4 - - - -
Leased Units Gross Margin Add Back - - - - - - - - 19.3 28.7 55.2 103.3 248.5 280.8 407.2 738.0
Non-GAAP Net Income (128.2) (222.7) (79.3) (93.2) (97.1) (74.6) (344.2) 15.4 26.3 15.9 39.4 96.8 190.9 283.6 672.8 1,533.3
Non-GAAP EPS ($2.54) ($2.22) ($0.76) ($0.89) ($0.92) ($0.65) ($3.21) $0.12 $0.20 $0.12 $0.28 $0.73 $1.35 $1.95 $4.50 $10.00
Diluted Shares Outstanding 50.4 100.4 104.8 105.2 105.6 113.8 107.3 124.3 130.5 137.1 139.0 132.7 141.5 145.4 149.4 153.4

Source: Company Reports and Wedbush Securities, Inc.




Craig Irwin (212) 938-9926
Tesla Motors | 4


Figure 5: Tesla Motors, Inc. Major Demand Assumptions
Craig Irwin (212) 938-9926 craig.irwin@wedbush.com
Tesla Motors - Major Assumptions
(YE Dec-31; $mm) 2010 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13 3Q13 4Q13E 2013E 2014E 2015E 2016F 2017F
Vehicle Revenue Assumptions:
Roadsters Delivered 567 655 99 89 68 44 300 - - - - - - - - -
Model S Delivered - - - 10 253 2,387 2,650 4,900 5,150 5,500 6,900 22,450 27,700 22,000 25,000 25,000
Model X Delivered - - - - - - - - - - - - 3,100 15,000 20,000 25,000
Gen III Delivered - - - - - - - - - - - - - 2,000 40,000 150,000
Total Vehicles Delivered 567 655 99 99 321 2,431 2,950 4,900 5,150 5,500 6,900 22,450 30,800 39,000 85,000 200,000
Roadster - ASP ($000) $133 $155 $181 $168 $170 $170 $173 - - - - - - - - -
Model S - ASP ($000) - - - $155 $111 $114 $114 $93 $90 $103 $100 $97 $94 $85 $80 $75
Model X - ASP ($000) - - - - - - - - - - - - $95 $95 $90 $85
Gen III - ASP ($000) - - - - - - - - - - - - - $40 $40 $40
Vehicle Revenue 75.5 101.7 17.9 16.5 39.6 280.5 354.4 454.0 465.7 568.0 690.0 2,179 2,906 3,375 5,400 10,000

Source: Company Reports and Wedbush Securities, Inc.





Craig Irwin (212) 938-9926
Tesla Motors | 5


Figure 6: Tesla Motors, Inc. Cash Flows
Craig Irwin (212) 938-9926 craig.irwin@wedbush.com
Tesla Motors - Cash Flows
(YE Dec-31; $mm) 2010 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13 3Q13 4Q13E 2013E 2014E 2015E
Cash Flows:
Net Income (154.3) (254.4) (89.9) (105.6) (110.8) (89.9) (396.2) 11.2 (30.5) (38.5) (37.7) (95.4) (149.6) (77.3)
Depreciation 10.6 16.9 4.2 4.3 7.5 12.8 28.8 17.9 22.2 28.5 16.4 84.9 90.0 95.0
Stock Compensation 21.1 29.4 10.7 12.5 12.5 14.4 50.1 14.9 19.7 21.0 21.9 77.4 91.9 80.0
Other, (Net) 6.0 4.8 2.7 1.8 2.3 0.6 7.4 (8.8) 11.4 6.6 - 9.2 - -
Change in Working Capital (11.2) 88.9 22.2 26.0 (6.1) 0.7 42.8 28.9 (61.0) 84.8 66.0 (40.3) 108.5 51.6
Cash from Operations (127.8) (114.4) (50.0) (61.0) (94.6) (61.4) (267.0) 64.1 (38.2) 102.3 66.5 35.7 140.8 149.4
Capital Expenditures (40.2) (197.9) (68.0) (61.3) (68.5) (41.5) (239.2) (57.7) (40.5) (76.5) (80.0) (254.8) (200.0) (200.0)
Acquisition Fremont Facility (65.2) - - - - - - - - - - - - -
DOE Restricted Cash (73.6) 50.1 (11.0) 19.2 0.3 0.1 8.6 (0.1) 14.8 - - 14.8 - -
Restricted Cash (1.3) (28.2) (0.5) 22.9 (26.9) 3.1 (1.3) 2.6 (1.5) (1.0) - 0.1 - -
Marketable Securities - - - - 25.0 - 25.0 - - - - - - -
Cash from Investing (180.3) (175.9) (79.4) (19.2) (70.1) (38.2) (206.9) (55.2) (27.2) (77.5) (80.0) (239.9) (200.0) (200.0)
Debt (Net) 71.5 204.0 83.8 70.8 32.5 (13.9) 173.3 (14.2) 161.0 (2.7) (14.5) 129.6 (58.0) (58.0)
Stock Options 1.4 10.5 9.0 1.4 7.7 6.8 24.9 17.9 37.2 27.1 171.4 253.6 40.0 40.0
Issuance Common 268.8 231.5 - - - 221.5 221.5 - 398.8 (0.2) - 398.6 - -
Deferred common stock and loan f acility issuance costs (3.7) - - - - - - - - - - - - -
Cash from Financing 338.0 446.0 92.8 72.2 40.2 214.4 419.6 3.7 597.0 24.2 156.9 781.8 (18.0) (18.0)
FX Impacts
Change in Cash 29.9 155.7 (36.7) (8.0) (124.5) 114.8 (54.3) 12.5 531.6 49.1 143.4 577.6 (77.2) (68.6)
Cash at Beg. of Period 69.6 99.6 255.3 218.6 210.6 85.7 255.3 201.9 214.4 746.1 795.1 200.9 778.5 701.3
Cash at End of Period 99.6 255.3 218.6 210.6 86.1 200.5 200.9 214.4 746.1 795.1 938.5 778.5 701.3 632.7
Cash Flow Metrics
Free Cash Flow (168.0) (312.3) (118.0) (122.3) (163.1) (102.9) (506.3) 6.4 (78.7) 25.8 (13.5) (219.1) (59.2) (50.6)
FCF - From Reservations 4.7 61.0 21.6 20.1 4.9 0.5 47.1 (8.1) 3.0 6.6 (36.5) (35.0) 73.5 38.9
FCF - Net Reservations (172.7) (373.3) (139.6) (142.4) (168.0) (103.4) (553.3) 14.5 (81.7) 19.2 22.9 (184.1) (132.7) (89.5)
FCF per Share ($3.34) ($3.11) ($1.13) ($1.16) ($1.54) ($0.90) ($4.72) $0.05 ($0.67) $0.21 ($0.10) ($1.74) ($0.42) ($0.35)

Source: Company Reports and Wedbush Securities, Inc.





Craig Irwin (212) 938-9926
Tesla Motors | 6


Figure 7: Tesla Motors, Inc. Balance Sheet
Craig Irwin (212) 938-9926 craig.irwin@wedbush.com
Tesla Motors - Balance Sheet
(YE Dec-31; $mm) 2010 2011 1Q12 2Q12 3Q12 2012 1Q13 2Q13 3Q13 2013E 2014E 2015E
Balance Sheet:
Cash 99.6 255.3 218.6 210.6 85.7 201.9 214.4 746.1 795.1 938.5 701.3 632.7
Restricted Cash 73.6 23.5 39.2 22.0 22.9 19.1 16.7 1.4 1.3 1.3 1.3 1.3
Receivables, (Net) 6.7 9.5 13.6 11.0 9.2 26.8 46.1 113.5 47.6 70.5 86.2 101.8
Inventory 45.2 50.1 55.4 66.7 159.0 268.5 237.6 254.9 347.5 308.8 278.2 272.7
Prepaid / Other 10.8 34.5 32.1 6.9 7.8 8.4 11.1 13.7 27.3 29.7 30.2 31.5
Current Assets 235.9 372.8 358.9 317.1 284.5 524.8 526.0 1,129.5 1,218.8 1,348.8 1,097.2 1,040.1
Operating Lease Vehicles, Net 8.0 11.8 12.0 11.8 11.8 10.1 9.1 131.5 268.8 268.8 268.8 268.8
Property & Equipment, Net 114.6 298.4 364.1 421.9 486.2 552.2 582.0 595.6 654.5 718.1 828.1 933.1
Restricted Cash 4.9 8.1 3.8 4.0 4.7 5.2 5.0 7.1 8.1 8.1 8.1 8.1
Other Assets 22.7 22.4 22.2 22.1 21.9 22.0 21.7 24.2 16.0 16.0 16.0 16.0
Total Assets 378.1 701.7 761.1 776.9 809.2 1,104.1 1,143.8 1,887.8 2,166.2 2,091.0 1,949.4 1,997.3
Payables 29.0 56.1 64.3 78.6 162.0 303.4 304.2 262.2 302.4 374.6 395.1 419.3
Accrued Liabilities 20.9 32.1 33.6 33.6 28.5 39.8 40.7 55.1 74.5 91.4 96.2 102.1
Def erred Revenue 4.6 2.3 2.6 2.8 2.9 1.9 3.7 29.8 63.7 63.7 63.7 63.7
Capital Lease 0.3 1.1 1.7 2.5 3.2 4.4 5.5 5.7 6.0 6.0 6.0 6.0
Reservation Payments 30.8 91.8 113.3 133.4 138.3 138.8 130.7 133.7 140.3 103.8 177.4 216.3
Current Portion of LT Debt - 7.9 20.2 35.6 50.8 50.8 50.8 - 582.5 582.5 582.5 582.5
Current Liabilities 85.6 191.3 235.7 286.5 385.8 488.3 535.6 486.5 1,169.5 639.5 738.4 807.4
Stock Warrants 6.1 8.8 8.7 8.5 9.7 10.7 - - - - - -
Capital lease 0.5 2.8 3.7 4.7 6.3 10.0 10.5 9.2 10.9 10.9 10.9 10.9
Def erred Revenue 2.8 3.1 3.1 2.6 2.5 3.1 5.3 68.3 131.3 131.3 131.3 131.3
LT Debt 71.8 268.3 340.3 396.2 414.2 401.5 388.8 578.7 - (14.5) (72.5) (130.5)
Other LT Liabilities 12.3 14.9 15.7 16.1 18.6 25.2 35.0 115.6 53.8 53.8 53.8 53.8
Total Liabilities 179.0 489.4 607.2 714.7 837.1 938.6 975.2 1,258.4 1,524.5 821.1 861.9 872.9
Total Equity 199.1 212.3 153.9 62.2 (27.9) 165.5 168.6 629.4 564.2 1192.4 1010.0 1046.9
Liabilities & Equity 378.1 701.7 761.1 776.9 809.2 1104.1 1143.8 1887.8 2166.2 2091.0 1949.4 1997.3
Total Cash (Cash + ST Restricted) 173.2 278.7 257.8 232.5 108.6 221.0 231.1 747.4 796.4 939.7 702.6 634.0
Cash Less Reservations 142.4 187.0 144.5 99.1 (29.8) 82.2 100.4 613.7 656.1 835.9 525.2 417.7
Total Debt 71.8 276.3 360.5 431.8 465.0 452.3 439.6 578.7 582.5 568.0 510.0 452.0
Net Debt (101.3) (2.5) 102.7 199.3 356.5 231.4 208.5 (168.7) (213.9) (371.7) (192.6) (182.0)
Book per Share $3.95 $2.11 $1.47 $0.59 ($0.26) $1.54 $1.36 $5.33 $4.63 $9.48 $7.14 $7.20
Days Sales Outstanding 19 32 35 42 18 5 6 18 17 11 15 17
Days Payable 102 158 275 297 186 75 59 85 78 85 97 97
Inventory Turnover 2.4x 2.5x 1.5x 1.4x 2.1x 5.3x 7.4x 4.9x 4.4x 4.4x 4.9x 5.6x

Source: Company Reports and Wedbush Securities, Inc.





Craig Irwin (212) 938-9926
Tesla Motors | 7

Analyst Biography

Mr. Craig Irwin is a Senior Vice President, covering the Clean Technology sector with coverage currently including energy efficiency,
energy storage, lighting, electric transmission, smart grid, and advanced biofuels. Craig has covered the Clean Technology sector
since 2001 as a Senior Analyst at First Albany and more recently at Merriman Curhan Ford before joining Wedbush in 2009. He also
served as Director of Corporate Strategy for a public company in the Energy Storage space where he completed the successful
acquisition of a company in the Inc-500 and another in China.

Mr. Irwin received BA and BS degrees from the University of Rochester.

Craig's Edge: Craig's decade of experience covering the CleanTech sector gives him important perspective for a group that exhibits
both emerging growth and cyclical investment trends. Because of his tenure following the sector Mr. Irwin has diverse and established
relationships that he keeps fresh from regularly attending meetings such as working groups and Utility Commission hearings. His
checks also extend well into industry supply chains that he learned to navigate in his corporate strategy and M&A role.


Analyst Certification
I, Craig Irwin, Min Xu, certify that the views expressed in this report accurately reflect my personal opinion and that I have not and will not,
directly or indirectly, receive compensation or other payments in connection with my specific recommendations or views contained in this report.

Disclosure information regarding historical ratings and price targets is available at http://www.wedbush.com/ResearchDisclosure/DisclosureQ413.pdf

Investment Rating System:
Outperform: Expect the total return of the stock to outperform relative to the median total return of the analyst’s (or the analyst’s team) coverage
universe over the next 6-12 months.
Neutral: Expect the total return of the stock to perform in-line with the median total return of the analyst’s (or the analyst’s team) coverage
universe over the next 6-12 months.
Underperform: Expect the total return of the stock to underperform relative to the median total return of the analyst’s (or the analyst’s team)
coverage universe over the next 6-12 months.

The Investment Ratings are based on the expected performance of a stock (based on anticipated total return to price target) relative to the
other stocks in the analyst’s coverage universe (or the analyst’s team coverage).*

Rating Distribution
(as of December 31, 2013)
Investment Banking Relationships
(as of December 31, 2013)
Outperform:54%
Neutral: 43%
Underperform: 3%
Outperform:18%
Neutral: 2%
Underperform: 0%

The Distribution of Ratings is required by FINRA rules; however, WS’ stock ratings of Outperform, Neutral, and Underperform most closely
conform to Buy, Hold, and Sell, respectively. Please note, however, the definitions are not the same as WS’ stock ratings are on a relative
basis.

The analysts responsible for preparing research reports do not receive compensation based on specific investment banking activity. The
analysts receive compensation that is based upon various factors including WS’ total revenues, a portion of which are generated by WS’
investment banking activities.

Wedbush Equity Research Disclosures as of January 17, 2014

Company Disclosure
Tesla Motors 1

Research Disclosure Legend
1. WS makes a market in the securities of the subject company.
2. WS managed a public offering of securities within the last 12 months.
3. WS co-managed a public offering of securities within the last 12 months.
4. WS has received compensation for investment banking services within the last 12 months.
5. WS provided investment banking services within the last 12 months.
6. WS is acting as financial advisor.
7. WS expects to receive compensation for investment banking services within the next 3 months.
8. WS provided non-investment banking securities-related services within the past 12 months.
9. WS has received compensation for products and services other than investment banking services within the past 12 months.
10. The research analyst, a member of the research analyst’s household, any associate of the research analyst, or any individual
directly involved in the preparation of this report has a long position in the common stocks.




Craig Irwin (212) 938-9926
Tesla Motors | 8

11. WS or one of its affiliates beneficially own 1% or more of the common equity securities.
12. The analyst maintains Contingent Value Rights that enables him/her to receive payments of cash upon the company’s meeting
certain clinical and regulatory milestones.

Price Charts
Wedbush disclosure price charts are updated within the first fifteen days of each new calendar quarter per FINRA regulations. Price charts for
companies initiated upon in the current quarter, and rating and target price changes occurring in the current quarter, will not be displayed until
the following quarter. Additional information on recommended securities is available on request.



* WS changed its rating system from (Strong Buy/Buy/Hold/Sell) to (Outperform/ Neutral/Underperform) on July 14, 2009.
Please access the attached hyperlink for WS’ Coverage Universe: http://www.wedbush.com/services/cmg/equities-division/research/equity-
research Applicable disclosure information is also available upon request by contacting Ellen Kang in the Research Department at (213) 688-
4529, by email to ellen.kang@wedbush.com, or the Business Conduct Department at (213) 688-8090. You may also submit a written request
to the following: Business Conduct Department, 1000 Wilshire Blvd., Los Angeles, CA 90017.


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