BY: IZAAN SHARIEF

SYED SULTAN
MAHESH
 ABOUT THE COMPANY
• Tesla, is an American electric vehicle and clean energy company based in
Austin, Texas.
• Tesla designs and manufactures electric cars, battery energy storage from
home to grid-scale, solar panels and solar roof tiles, and services.

• Tesla is one of the world's most valuable companies and remains

the world's most valuable automaker with a market
capitalization of nearly US$1 trillion.
• Elon Musk the founder and owner of tesla made $6.5 million investment,
co-founder Elon Musk became the largest shareholder of the
company and its chairman
• Musk led Tesla's Series B venture capital funding round of $13 million,
which added Valor Equity Partners to the funding team. Musk co-led
the third, $40 million round which saw investment from
prominent entrepreneurs including Google co-founders Sergey Brin and
Larry Page, and former eBay President Jeff Skoll. A fourth round worth $45
 Tesla began production of the Electric sports car in 2008.
 By January 2009, Tesla had raised $187 million and delivered 147 cars.
 Musk had contributed $70 million of his own money to the company.
 In June 2009, Tesla was approved to receive $465 million in interest-bearing
loans from the United States Department of Energy.
 The funding, part of the $8 billion Advanced Technology Vehicles
Manufacturing Loan Program, supported engineering and production of the
Cars, as well as the development of commercial powertrain technology.
 Tesla repaid the loan with $12 million interest.
 The company issued 13.3 million shares of common stock at a price of
$17.00 per share, raising $226 million.
 Tesla reached a market capitalization of $86 billion, breaking the record
for greatest valuation of any American automaker.
 Tesla reached a valuation of $206 billion, surpassing
Toyota's $202 billion to become the world's most valuable
automaker by market capitalization.
 Today Tesla's Net Worth is $33.883B.
 FINANCIAL ANALYSIS OF TESLA CO.
5Musk, the co-founder and CEO of Tesla, is the richest person
• lon
in the world with a $269 billion net worth.
• Production output for 2021 have Increased by
930,422 vehicles (2021) and 3.99 GWH battery energy
storage systems (2021) 345 MW solar panel (2021)
• Revenue of US$53.8 billion (2021).
• Operating incomeof US$6.52 billion (2021).
• Net income of US$5.52 billion (2021).
• Total assets of US$62.1 billion (2021).
• Total equity Increase US$30.2 billion (2021).
• Number of employees Increase 99,290 (2021).
Tesla deliveries vary significantly by month due to regional issues such as
availability of car carriers and registration. On March 9, 2020, the company
produced its 1 millionth electric car, becoming the first auto manufacturer to
achieve such a milestone. In the third quarter of 2021, Tesla sold its 2 millionth
electric car, becoming the first auto manufacturer to achieve such a milestone.
 TESLA FINANCES
• For the fiscal (and calendar) year 2021, Tesla reported a net income of $5.52
billion.

The annual revenue was $53.8 billion, an increase of 71% over the previous fiscal
year.

Tesla ended 2020 with over $19 billion of cash on hand after having raised
approximately $12 billion in stock sales.[80] At the end of 2019 it had $6.3 billion
cash on hand.

Of the revenue number in 2021, $314 million came from selling regulatory credits
to other automakers to meet government pollution standards. That number has
been a smaller percentage of revenue for multiple quarters.

In February 2021, a 10-K filing revealed that Tesla had invested some $1.5 billion
in the crypto currency Bitcoin, and the company indicated it would soon accept
Bitcoin as a form of payment.[80] Critics then pointed out how investing in crypt
currency can run counter to Tesla's environmental goals. Tesla made more profit
from the 2021 investment than the profit from selling cars in 2020, due to the
TESLA FINANCIAL PERFOMANCE
 TESLA STOCK
• In the spring of 2013, Tesla’s stock share price shot into the stratosphere from a
range of $20 to $30 over the previous few years to a high of $190.90.
• In 2015, the share price kept climbing to $280.02.
• In April 2016, the share price had been hovering around
$250, and in December 2017 climbed even higher to

around $340.
• But that price is a simple matter of history.
As of August 2019, the stock was hovering just past the

$200-mark, closing at $213.10 on Aug. 27, 2019.

• The stock's track record still has most investors wondering if

it will climb higher and reach the lofty highs it once had.
 CAPITAL STRUCTURE DEBT & SHAREHOLDER EQUITY
Auto manufacturers require huge amounts of capital to invest into the actual manufacturing process. While the Big
Three automakers have established factories, Tesla has to fuel its expansion by leveraging debt. The company's debt
ballooned, exploding from $598 million in 2013 to nearly $10 billion in 2018. The company ended 2018 with a total
of $3.7 billion in cash and cash equivalents. As of the end of 2018, its debt-to-equity (D/E) ratio was 1.63%, which is
lower than the industry average. However, the market valuation of Tesla is overvalued, providing a lower ratio than
other well-established automakers.

SHAREHOLDER EQUITY
Institutional investors hold 63% of Tesla's shares. At the end of 2018, the company had a capital surplus of $10.2
billion, with just over $4.9 billion in stockholder equity. Tesla's market cap, as of August 2019, is $38.817 billion.

To fund the expansion of manufacturing facilities for its cars and batteries, the company is not expecting to make a
big profit until 2020. Tesla's return on equity (ROE) is -9.54%, return on assets (ROA) is 0.70%, and profit margin is
-2.64%, though its quarterly revenue growth year over year (YOY) as of 2018 was 58.70%.
 DEBT AND MORE DEBT
REVENUE
In April GROWTH
2019, Tesla said it planned to raise another $2 billion through long-term
debt or equity share positions over the next few years. With almost $9.4 billion in
purely long-term debt already on the books—not
2020-.21
including short-term debt—the
company is in a negative cash flow situation and will be for the
• Accenture foreseeable
expects its revenue future.
to
2017-19
rise 18% to 22% year over year
The only way to fund this position is through ever-increasing
US$9.8 share-equity or long-
• For the full year, Accenture expects its
term debt raises. These scenarios
2014-16
result in either diluting
revenuethe earnings
to increase 12%per share
to 15%,
(EPS) value for stockholders or saddling US $21.6 the company with debt to equity in a ratio
compared to its 14% growth in 2021

that will continue to outpace its major competitors. The capital structure of Tesla
2011-13

appears to be in trouble for

2001-2010
investors.
US $8 1.6 It must continue to grow its top-line revenue
significantly to be able to provide confidence to its investors, lenders, and
US $93.9
shareholders,11while
7. 7
at the same time increasing its return on equity, return on
US $
assets, and profit margins.
CONCLUSION
There is no doubt that Tesla is a disruptor of the automotive industry. The company is reinventing the
way cars and technology integrate, bringing to its customers a sustainable and energy efficient
transportation solution. Considering the current climate scenario in the entire world, we need to
reduce emissions and start contributing to climate change. According to the Pew Research Center, 88%
of all Americans own a car. Electric vehicles can be a deciding factor for the world’s global warming
crisis.
Considering the importance of Tesla’s innovative technology and the impressive popularity of the
brand, the company continues to see a huge demand for its product and it needs to improve its
logistics and supply chain processes to start delivering its products as expected.
From a management improvement perspective, the company should focus on quality, time, costs, and
customer relation measurements so it can track better its data, adjusting production to current levels
of supply and demand and stop being over-ambitions. Related to its supply chain, the company could
focus on establishing long lasting relationships with its suppliers, reporting properly about demand
levels to avoid delays. Tesla also suffers with inventory management due to its limited warehouse
space in relation to expected sales. The company should expand its warehouse space.
Tesla is a fascinating company with unique products and relevant impact to the environment. The
company needs to start addressing its inventory and supply chain processes issues if it wants to remain
the “most-loved auto brand” in the world (AutoTrader, 2019).