☒

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 Income (Loss)

6

Consolidated Statements of Redeemable Noncontrolling Interests and Equity

7

Consolidated Statements of Cash Flow

9

Notes to Consolidated Financial Statements

10

Item 2.

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

36

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

52

Item 4

Control and Procedures

52

PART II. OTHER INFORMATION

Item 1.

Legal Proceeding

54

Item 1A.

Risk Factors

55

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

75

Item 3

Defaults Upon Senior Securities

75

Item 4.

Mine Safety Disclosures

75

Item 5.

Other Information

75

Item 6.

Exhibits

77

SIGNATURES

79

June 30,

December 31,

2020

2019

Assets

Current assets

Cash and cash equivalents

$

8,615

$

6,268

Accounts receivable, net

1,485

1,324

Inventory

4,018

3,552

Prepaid expenses and other current assets

1,218

959

Total current assets

15,336

12,103

Operating lease vehicles, net

2,524

2,447

Solar energy systems, net

6,069

6,138

Property, plant and equipment, net

11,009

10,396

Operating lease right-of-use assets

1,274

1,218

Intangible assets, net

312

339

Goodwill

196

198

Other non-current assets

1,415

1,470

Total assets

$

38,135

$

34,309

Liabilities

Current liabilities

Accounts payable

$

3,638

$

3,771

Accrued liabilities and other

3,110

3,222

Deferred revenue

1,130

1,163

Customer deposits

713

726

Current portion of debt and finance leases

3,679

1,785

Total current liabilities

12,270

10,667

Debt and finance leases, net of current portion

10,416

11,634

Deferred revenue, net of current portion

1,198

1,207

Other long-term liabilities

2,870

2,691

Total liabilities

26,754

26,199

Commitments and contingencies (Note 12)

Redeemable noncontrolling interests in subsidiaries

613

643

Convertible senior notes (Note 10)

44

—

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; 186 and

   181 shares issued and outstanding as of June 30, 2020 and December 31,

   2019, respectively

0

0

Additional paid-in capital

15,895

12,737

Accumulated other comprehensive loss

(40

)

(36

)

Accumulated deficit

(6,000

)

(6,083

)

Total stockholders' equity

9,855

6,618

Noncontrolling interests in subsidiaries

869

849

Total liabilities and equity

$

38,135

$

34,309

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Revenues

Automotive sales

$

4,911

$

5,168

$

9,804

$

8,677

Automotive leasing

268

208

507

423

Total automotive revenues

5,179

5,376

10,311

9,100

Energy generation and storage

370

369

663

693

Services and other

487

605

1,047

1,098

Total revenues

6,036

6,350

12,021

10,891

Cost of revenues

Automotive sales

3,714

4,254

7,413

7,110

Automotive leasing

148

106

270

223

Total automotive cost of revenues

3,862

4,360

7,683

7,333

Energy generation and storage

349

326

631

642

Services and other

558

743

1,206

1,429

Total cost of revenues

4,769

5,429

9,520

9,404

Gross profit

1,267

921

2,501

1,487

Operating expenses

Research and development

279

324

603

664

Selling, general and administrative

661

647

1,288

1,351

Restructuring and other

—

117

—

161

Total operating expenses

940

1,088

1,891

2,176

Income (loss) from operations

327

(167

)

610

(689

)

Interest income

8

10

18

19

Interest expense

(170

)

(172

)

(339

)

(330

)

Other expense, net

(15

)

(41

)

(69

)

(15

)

Income (loss) before income taxes

150

(370

)

220

(1,015

)

Provision for income taxes

21

19

23

42

Net income (loss)

129

(389

)

197

(1,057

)

Net income attributable to noncontrolling interests and

   redeemable noncontrolling interests in subsidiaries

25

19

77

53

Net income (loss) attributable to common stockholders

$

104

$

(408

)

$

120

$

(1,110

)

Net income (loss) per share of common stock attributable

   to common stockholders

Basic

$

0.56

$

(2.31

)

0.65

$

(6.40

)

Diluted

$

0.50

$

(2.31

)

0.59

$

(6.40

)

Weighted average shares used in computing net

   income (loss) per share of common stock

Basic

186

177

184

175

Diluted

207

177

203

175

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Net income (loss)

$

129

$

(389

)

$

197

$

(1,057

)

Other comprehensive income (loss):

Foreign currency translation adjustment

73

29

(4

)

2

Comprehensive income (loss)

202

(360

)

193

(1,055

)

Less: Comprehensive income attributable to

   noncontrolling interests and redeemable

   noncontrolling interests in subsidiaries

25

19

77

53

Comprehensive income (loss) attributable to common stockholders

$

177

$

(379

)

$

116

$

(1,108

)

Accumulated

Redeemable

Additional

Other

Total

Noncontrolling

Noncontrolling

Common Stock

Paid-In

Accumulated

Comprehensive

Stockholders'

Interests in

Total

Three Months Ended June 30, 2019

Interests

Shares

Amount

Capital

Deficit

Loss

Equity

Subsidiaries

Equity

Balance as of March 31, 2019

$

570

174

$

0

$

10,564

$

(5,923

)

$

(35

)

$

4,606

$

862

$

5,468

Conversion feature of Convertible Senior Notes due in 2024

—

—

—

491

—

—

491

—

491

Purchase of convertible note hedges

—

—

—

(476

)

—

—

(476

)

—

(476

)

Sales of warrants

—

—

—

174

—

—

174

—

174

Issuance of common stock for equity incentive awards and acquisitions,

   net of transaction costs

—

2

0

222

—

—

222

—

222

Issuance of common stock in May 2019 public offering at $243.00 per share,

    net of issuance costs of $15

—

3

0

848

—

—

848

—

848

Stock-based compensation

—

—

—

226

—

—

226

—

226

Contributions from noncontrolling interests

10

—

—

—

—

—

—

32

32

Distributions to noncontrolling interests

(26

)

—

—

—

—

—

—

(33

)

(33

)

Other

—

—

—

3

—

—

3