Tesla, Inc.: Form 10-Q for the quarter ended 30 June 2022

Financial Information

Financial statements

Consolidated Balance Sheets (in millions, except per share data) (unaudited)
	June 30, 2022	December 31, 2021
Assets
Current assets
Cash and cash equivalents	$18,324	$17,576
Short-term marketable securities	591	131
Accounts receivable, net	2,081	1,913
Inventory	8,108	5,757
Prepaid expenses and other current assets	2,118	1,723
Total current assets	31,222	27,100
Operating lease vehicles, net	4,782	4,511
Solar energy systems, net	5,624	5,765
Property, plant and equipment, net	21,093	18,884
Operating lease right-of-use assets	2,185	2,016
Digital assets, net	218	1,260
Intangible assets, net	241	257
Goodwill	196	200
Other non-current assets	2,952	2,138
Total assets	68,513	62,131
Liabilities
Current liabilities
Accounts payable	11,212	10,025
Accrued liabilities and other	6,037	5,719
Deferred revenue	1,858	1,447
Customer deposits	1,182	925
Current portion of debt and finance leases	1,532	1,589
Total current liabilities	21,821	19,705
Debt and finance leases, net of current portion	2,898	5,245
Deferred revenue, net of current portion	2,210	2,052
Other long-term liabilities	3,926	3,546
Total liabilities	30,855	30,548
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests in subsidiaries	421	568
Equity
Stockholders’ equity
Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding	—	—
Common stock; $0.001 par value; 2,000 shares authorized; 1,041 and 1,033 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	1	1
Additional paid-in capital	30,944	29,803
Accumulated other comprehensive (loss) income	(477)	54
Retained earnings	5,908	331
Total stockholders’ equity	36,376	30,189
Noncontrolling interests in subsidiaries	861	826
Total liabilities and equity	68,513	62,131

Consolidated Statements of Operations (in millions, except per share data) (unaudited)
	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Revenues
Automotive sales	$13,670	$9,520	$29,184	$17,707
Automotive regulatory credits	344	354	1,023	872
Automotive leasing	588	332	1,256	629
Total automotive revenues	14,602	10,206	31,463	19,208
Energy generation and storage	866	801	1,482	1,295
Services and other	1,466	951	2,745	1,844
Total revenues	16,934	11,958	35,690	22,347
Cost of revenues
Automotive sales	10,153	7,119	21,067	13,576
Automotive leasing	368	188	776	348
Total automotive cost of revenues	10,521	7,307	21,843	13,924
Energy generation and storage	769	781	1,457	1,376
Services and other	1,410	986	2,696	1,948
Total cost of revenues	12,700	9,074	25,996	17,248
Gross profit	4,234	2,884	9,694	5,099
Operating expenses
Research and development	667	576	1,532	1,242
Selling, general and administrative	961	973	1,953	2,029
Restructuring and other	142	23	142	(78)
Total operating expenses	1,770	1,572	3,627	3,193
Income from operations	2,464	1,312	6,067	1,906
Interest income	26	11	54	21
Interest expense	(44)	(75)	(105)	(174)
Other income, net	28	45	84	73
Income before income taxes	2,474	1,293	6,100	1,826
Provision for income taxes	205	115	551	184
Net income	2,269	1,178	5,549	1,642
Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries	10	36	(28)	62
Net income attributable to common stockholders	2,259	1,142	5,577	1,580
Net income per share of common stock attributable to common stockholders
Basic	2.18	1.18	5.38	1.64
Diluted	1.95	1.02	4.82	1.41
Weighted average shares used in computing net income per share of common stock
Basic	1,037	971	1,036	966
Diluted	1,155	1,119	1,156	1,126

Consolidated Statements of Comprehensive Income (in millions) (unaudited)
	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Net income	$2,269	$1,178	$5,549	$1,642
Other comprehensive (loss) income:
Foreign currency translation adjustment	(421)	63	(517)	(157)
Unrealized net loss on marketable securities	(6)	—	(14)	—
Comprehensive income	1,842	1,241	5,018	1,485
Less: Comprehensive income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries	10	36	(28)	62
Comprehensive income attributable to common stockholders	1,832	1,205	5,046	1,423

Consolidated Statements of Redeemable Noncontrolling Interests and Equity (in millions, except per share data) (unaudited)

	Redeemable Noncontrolling	Common Stock		Additional Paid-In	Accumulated Other Comprehensive	Accumulated	Total Stockholders’	Noncontrolling Interests in	Total
Three Months Ended June 30, 2022	Interests	Shares	Amount	Capital	Loss	Earnings	Equity	Subsidiaries	Equity
Balance as of March 31, 2022	459	1,036	1	30,485	(50)	3,649	34,085	862	34,947
Exercises of conversion feature of convertible senior notes	—	0	0	0	—	—	—	—	—
Settlements of warrants	—	3	0	0	—	—	0	—	0
Issuance of common stock for equity incentive awards	—	2	0	43	—	—	43	—	43
Stock-based compensation	—	—	—	419	—	—	419	—	419
Distributions to noncontrolling interests	(13)	—	—	—	—	—	—	(26)	(26)
Buy-out of noncontrolling interests	(10)	—	—	(3)	—	—	(3)	—	(3)
Net (loss) income	(15)	—	—	—	—	2,259	2,259	25	2,284
Other comprehensive loss	—	—	—	—	(427)	—	(427)	—	(427)
Balance as of June 30, 2022	421	1,041	1	30,944	(477)	5,908	36,376	861	37,237

	Redeemable Noncontrolling	Common Stock		Additional Paid-In	Accumulated Other Comprehensive	Accumulated	Total Stockholders’	Noncontrolling Interests in	Total
Six Months Ended June 30, 2022	Interests	Shares	Amount	Capital	Income (Loss)	Earnings	Equity	Subsidiaries	Equity
Balance as of December 31, 2021	568	1,033	1	29,803	54	331	30,189	826	31,015
Exercises of conversion feature of convertible senior notes	—	0	0	0	—	—	—	—	—
Settlements of warrants	—	3	0	0	—	—	—	—	—
Issuance of common stock for equity incentive awards	—	5	0	245	—	—	245	—	245
Stock-based compensation	—	—	—	904	—	—	904	—	904
Distributions to noncontrolling interests	(25)	—	—	—	—	—	—	(48)	(48)
Buy-out of noncontrolling interests	(11)	—	—	(8)	—	—	(8)	—	(8)
Net (loss) income	(111)	—	—	—	—	5,577	5,577	83	5,660
Other comprehensive loss	—	—	—	—	(531)	—	(531)	—	(531)
Balance as of June 30, 2022	421	1,041	1	30,944	(477)	5,908	36,376	861	37,237

7

	Redeemable Noncontrolling	Common Stock		Additional Paid-In	Accumulated Other Comprehensive	Accumulated	Total Stockholders’	Noncontrolling Interests in	Total
Three Months Ended June 30, 2021	Interests	Shares	Amount	Capital	Income	Deficit	Equity	Subsidiaries	Equity
Balance as of March 31, 2021	601	963	1	27,623	143	(4,750)	23,017	847	23,864
Exercises of conversion feature of convertible senior notes	—	1	0	(6)	—	—	(6)	—	(6)
Settlements of warrants	—	17	0	—	—	—	0	—	0
Issuance of common stock for equity incentive awards	—	3	0	69	—	—	69	—	69
Stock-based compensation	—	—	—	519	—	—	519	—	519
Contributions from noncontrolling interests	2	—	—	—	—	—	—	—	—
Distributions to noncontrolling interests	(14)	—	—	—	—	—	—	(26)	(26)
Net income	16	—	—	—	—	1,142	1,142	20	1,162
Other comprehensive income	—	—	—	—	63	—	63	—	63
Balance as of June 30, 2021	605	984	1	28,205	206	(3,608)	24,804	841	25,645

	Redeemable Noncontrolling	Common Stock		Additional Paid-In	Accumulated Other Comprehensive	Accumulated	Total Stockholders’	Noncontrolling Interests in	Total
Six Months Ended June 30, 2021	Interests	Shares	Amount	Capital	Income (Loss)	Deficit	Equity	Subsidiaries	Equity
Balance as of December 31, 2020	604	960	1	27,260	363	(5,399)	22,225	850	23,075
Adjustments for prior periods from adopting ASU 2020-06	—	—	—	(474)	—	211	(263)	—	(263)
Exercises of conversion feature of convertible senior notes	—	1	0	5	—	—	5	—	5
Settlements of warrants	—	17	0	—	—	—	0	—	0
Issuance of common stock for equity incentive awards	—	6	0	252	—	—	252	—	252
Stock-based compensation	—	—	—	1,162	—	—	1,162	—	1,162
Contributions from noncontrolling interests	2	—	—	—	—	—	—	—	—
Distributions to noncontrolling interests	(26)	—	—	—	—	—	—	(46)	(46)
Net income	25	—	—	—	—	1,580	1,580	37	1,617
Other comprehensive loss	—	—	—	—	(157)	—	(157)	—	(157)
Balance as of June 30, 2021	605	984	1	28,205	206	(3,608)	24,804	841	25,645