☒

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

☐

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

Delaware

91-2197729

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

3500 Deer Creek Road

Palo Alto, California

94304

(Address of principal executive offices)

(Zip Code)

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock

TSLA

The Nasdaq Global Select Market

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

Page

PART I.

FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

4

Consolidated Balance Sheets

4

Consolidated Statements of Operations

5

Consolidated Statements of Comprehensive Loss

6

Consolidated Statements of Redeemable Noncontrolling Interests and Equity

7

Consolidated Statements of Cash Flows

9

Notes to Consolidated Financial Statements

10

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

37

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

50

Item 4.

Controls and Procedures

50

PART II.

OTHER INFORMATION

Item 1.

Legal Proceedings

51

Item 1A.

Risk Factors

52

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

69

Item 3.

Defaults Upon Senior Securities

69

Item 4.

Mine Safety Disclosures

69

Item 5.

Other Information

69

Item 6.

Exhibits

69

SIGNATURES

71

June 30,

December 31,

2019

2018

Assets

Current assets

Cash and cash equivalents

$

4,954,740

$

3,685,618

Restricted cash

128,006

192,551

Accounts receivable, net

1,147,100

949,022

Inventory

3,382,358

3,113,446

Prepaid expenses and other current assets

569,748

365,671

Total current assets

10,181,952

8,306,308

Operating lease vehicles, net

2,069,540

2,089,758

Solar energy systems, net

6,200,704

6,271,396

Property, plant and equipment, net

10,082,458

11,330,077

Operating lease right-of-use assets

1,248,277

—

Intangible assets, net

327,358

282,492

Goodwill

153,475

68,159

MyPower customer notes receivable, net of current portion

400,308

421,548

Restricted cash, net of current portion

365,547

398,219

Other assets

842,978

571,657

Total assets

$

31,872,597

$

29,739,614

Liabilities

Current liabilities

Accounts payable

$

3,133,587

$

3,404,451

Accrued liabilities and other

2,622,943

2,094,253

Deferred revenue

883,293

630,292

Resale value guarantees

526,758

502,840

Customer deposits

631,107

792,601

Current portion of long-term debt and finance leases

1,791,085

2,567,699

Total current liabilities

9,588,773

9,992,136

Long-term debt and finance leases, net of current portion

11,234,401

9,403,672

Deferred revenue, net of current portion

1,182,042

990,873

Resale value guarantees, net of current portion

61,200

328,926

Other long-term liabilities

2,655,720

2,710,403

Total liabilities

24,722,136

23,426,010

Commitments and contingencies (Note 15)

Redeemable noncontrolling interests in subsidiaries

580,227

555,964

Equity

Stockholders' equity

Preferred stock; $0.001 par value; 100,000 shares authorized;

   no shares issued and outstanding

—

—

Common stock; $0.001 par value; 2,000,000 shares authorized; 179,118 and

   172,603 shares issued and outstanding as of June 30, 2019 and December 31,

   2018, respectively

179

173

Additional paid-in capital

12,052,458

10,249,120

Accumulated other comprehensive loss

(5,605

)

(8,218

)

Accumulated deficit

(6,331,639

)

(5,317,832

)

Total stockholders' equity

5,715,393

4,923,243

Noncontrolling interests in subsidiaries

854,841

834,397

Total liabilities and equity

$

31,872,597

$

29,739,614

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Revenues

Automotive sales

$

5,168,027

$

3,117,865

$

8,676,768

$

5,679,746

Automotive leasing

208,362

239,816

423,482

413,252

Total automotive revenues

5,376,389

3,357,681

9,100,250

6,092,998

Energy generation and storage

368,208

374,408

692,869

784,430

Services and other

605,079

270,142

1,098,021

533,554

Total revenues

6,349,676

4,002,231

10,891,140

7,410,982

Cost of revenues

Automotive sales

4,253,763

2,529,739

7,109,972

4,621,136

Automotive leasing

106,322

136,915

223,414

241,411

Total automotive cost of revenues

4,360,085

2,666,654

7,333,386

4,862,547

Energy generation and storage

325,523

330,273

642,410

705,636

Services and other

743,022

386,374

1,428,555

767,343

Total cost of revenues

5,428,630

3,383,301

9,404,351

6,335,526

Gross profit

921,046

618,930

1,486,789

1,075,456

Operating expenses

Research and development

323,898

386,129

664,072

753,225

Selling, general and administrative

647,261

750,759

1,351,190

1,437,163

Restructuring and other

117,345

103,434

160,816

103,434

Total operating expenses

1,088,504

1,240,322

2,176,078

2,293,822

Loss from operations

(167,458

)

(621,392

)

(689,289

)

(1,218,366

)

Interest income

10,362

5,064

19,124

10,278

Interest expense

(171,979

)

(163,582

)

(329,432

)

(313,128

)

Other (expense) income, net

(40,756

)

50,911

(15,006

)

13,195

Loss before income taxes

(369,831

)

(728,999

)

(1,014,603

)

(1,508,021

)

Provision for income taxes

19,431

13,707

42,304

19,312

Net loss

(389,262

)

(742,706

)

(1,056,907

)

(1,527,333

)

Net income (loss) attributable to noncontrolling interests and

   redeemable noncontrolling interests in subsidiaries

19,072

(25,167

)

53,562

(100,243

)

Net loss attributable to common stockholders

$

(408,334

)

$

(717,539

)

$

(1,110,469

)

$

(1,427,090

)

Net loss per share of common stock attributable to common

   stockholders

Basic

$

(2.31

)

$

(4.22

)

(6.40

)

$

(8.42

)

Diluted

$

(2.31

)

$

(4.22

)

(6.40

)

$

(8.42

)

Weighted average shares used in computing net loss per share of

   common stock

Basic

176,654

169,997

174,831

169,574

Diluted

176,654

169,997

174,831

169,574

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Net loss

$

(389,262

)

$

(742,706

)

$

(1,056,907

)

$

(1,527,333

)

Other comprehensive income (loss):

Foreign currency translation adjustment

29,414

(64,376

)

2,613

(14,803

)

Comprehensive loss

(359,848

)

(807,082

)

(1,054,294

)

(1,542,136

)

Less: Comprehensive income (loss) attributable to noncontrolling

   interests and redeemable noncontrolling interests in subsidiaries

19,072

(25,167

)

53,562

(100,243

)

Comprehensive loss attributable to common stockholders

$

(378,920

)

$

(781,915

)

$

(1,107,856

)

$

(1,441,893

)

Accumulated

Redeemable

Additional

Other

Total

Noncontrolling

Noncontrolling

Common Stock

Paid-In

Accumulated

Comprehensive

Stockholders'

Interests in

Total

Three Months Ended June 30, 2018

Interests

Shares

Amount

Capital

Deficit

Loss

Equity

Subsidiaries

Equity

Balance as of March 31, 2018

$

405,835

169,750

$

170

$

9,418,896

$

(5,051,292

)

$

82,921

$

4,450,695

$

863,876

$

5,314,571

Reclass from mezzanine equity to equity for Convertible Senior Notes due in 2018

—

—

—

2

—

—

2

—

2

Exercises of conversion feature of convertible senior notes

—

0

0

1

—

—

1

—

1

Common stock issued

—

766

1

31,052

—

—

31,053

—

31,053

Stock-based compensation

—

—

—

206,586

—

—

206,586

—

206,586

Contributions from noncontrolling interests

134,340

—

—

—

—

—

—

44,993

44,993

Distributions to noncontrolling interests

(19,537

)

—