a5a6c171d499aeac67d68374d45b4417c826d86f89710e858f5ef1bc81afeb5f

52a3bd6dc8b53093daee624c3b8e8c9fe21f6b949dea24b514368445bb1071a0

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

90c7333f995e15e3079abd55ce89ca2ac7ecf8121ebdcea7255593312634749b

1b9266e35fb03b669011226faefa19cecf2735b0d488efe85179657e15433781

United States

China

Netherlands

Norway

Other

Other International

North America

Europe

Asia

Total Revenue

d569931344f298fe017772d2b4515ea1e8b82b9046ba1141a280b9ab0e7186ff

Change in combined Model 3 and Model Y cash deliveries (units)

Change in deliveries of other models (units)

164f6907b23c8be312a81e89f56f537baedb510ff5de50bb6ba724d5ca6a6121

Cash and cash equivalents (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Total assets (USD, millions)

Total current liabilities (USD, millions)

Debt and finance leases, net of current portion (USD, millions)

Total liabilities (USD, millions)

Total stockholders’ equity (USD, millions)

45e8b4e9c9443f6b20677c527c00e8e8666087553bb5f362beb734d5b4615967

Total Revenues (USD, millions)

Total cost of revenues (USD, millions)

Gross profit (USD, millions)

Total operating expenses (USD, millions)

Income from operations (USD, millions)

Interest income (USD, millions)

Interest expense (USD, millions)

Income before income taxes (USD, millions)

Provision for (benefit from) income taxes (USD, millions)

Net income (USD, millions)

9d953e61aa2f449ffceed080494eadc6e5fcf69fb66aa9e1991a0042860a4d34

In **Q1 2024**, Tesla’s **Income from Operations** was significantly lower at **$1,171 million**, primarily due to **multiple factors** such as a **reduced average selling price (ASP)** for vehicles resulting from price cuts and an unfavorable mix of sales, **lower vehicle deliveries** (notably in the Model 3 and Model Y segments due to production challenges and factory shutdowns triggered by shipping diversions and an arson incident), **increased operating expenses**—which surged by **37%** to **$2,525 million**—costs associated with ramping up Cybertruck production, and a **negative foreign exchange impact** of **$0.2 billion**.  **[0000950170-24-046895_tsla-ex99_1.htm:2]** **[0000950170-24-046895_tsla-ex99_1.htm:7]** **[0001628280-24-017503_tsla-20240331.htm:30]** **[0000950170-24-040274_tsla-ex99_1.htm:0]** 

Why was Income from operations so low in Q1 2024?

The sharp improvement in Income from operations in Q3 2024 was driven by several factors. **First**, Tesla achieved **lower cost per vehicle** through reductions in raw material costs, freight, duties, and other one-time charges. **Second**, there was strong growth in key segments with the **Energy Generation and Storage segment revenue up 52% YoY** and the **Services and Other segment revenue up 29% YoY**, contributing to a higher gross profit. **Third**, Tesla recognized **$326 million in Full Self-Driving (FSD) revenue** for Cybertruck and features like "Actually Smart Summon." **Fourth**, an increase in vehicle deliveries, particularly with the ramp-up in Cybertruck production, further boosted profitability. **Fifth**, the company reported a **33% YoY increase in Regulatory Credit revenue** due to higher demand in North America. Finally, **operating expenses decreased by 6% YoY to $2,280 million**, reflecting effective cost-reduction efforts and efficiency improvements.  **[0001628280-24-043432_exhibit.htm:2]** **[0001628280-24-043486_tsla-20240930.htm:34]** 

What contributed to the sharp improvement in Income from operations in Q3 2024?

Tesla's Q4 2024 results include several one‐time and operational factors—such as a **$600 million mark-to-market gain on digital assets**, **record vehicle deliveries (495,570 units)**, cost reductions, increased energy storage deployments, improved regulatory credit revenue, and **$837 million in other income**—that positively affected net income in that quarter.  **[TSLA_3413670_6]** **[0001628280-25-000007_exhibit991.htm:0]** **[0001628280-25-002993_exhibit991.htm:1]** **[0001628280-25-003063_tsla-20241231.htm:68]** **[0001628280-25-003063_tsla-20241231.htm:64]** **[0001628280-25-002993_exhibit991.htm:10]**  However, while these documents detail the contributors to the Q4 2024 net income of approximately **$2,317–2,332 million**  **[0001628280-25-003063_tsla-20241231.htm:78]** **[TSLA_3413670_6]** , they do not provide a clear explanation for why this figure is drastically lower than Q4 2023's **$7,943 million**.  **[0001628280-24-002390_tsla-20231231.htm:76]**  In summary, although key operational factors in Q4 2024 are discussed, the documents do not definitively clarify **why net income dropped drastically in Q4 2024** compared to the previous year.  **[0001628280-24-002390_tsla-20231231.htm:76]** **[0001628280-25-003063_tsla-20241231.htm:78]** 

Why did Net income drop drastically in Q4 2024?

Tesla's **basic EPS** declined sharply in FY 2024 primarily due to a **significant drop in net income**. In FY 2023, Tesla benefited from a **one-time $6.54 billion release of valuation allowance**, which boosted net income to **$14.997 billion**; however, this benefit did not recur in FY 2024, when net income fell to **$7.091 billion**. This decline was further compounded by **increased operating expenses**—including higher **research and development costs** and **restructuring expenses**—and a marginal rise in the **weighted average shares outstanding**, diluting earnings per share.  **[0001628280-25-003063_tsla-20241231.htm:78]** **[0001628280-25-003063_tsla-20241231.htm:93]** **[0001628280-25-003063_tsla-20241231.htm:57]** 

Why did the Basic EPS decline sharply in FY 2024?

3005ee32443298ab66c22c90dde676f128fb9f9d1a573b18f6becc8239dc77ec

In Q1 2024, **Tesla’s cash and cash equivalents dropped significantly by $4.725 billion** primarily due to a **substantial decrease in net cash provided by operating activities**, a **significant increase in cash used for investing activities (including higher capital expenditures)**, and only a modest offset from improved financing activities.  **[0001628280-24-017503_tsla-20240331.htm:34]** **[0000950170-24-046895_tsla-ex99_1.htm:8]** 

Why did Cash and cash equivalents drop significantly in Q1 2024?

The surge in Q4 2024's Total Assets was primarily driven by **substantial increases** in key asset components. Specifically, **Property, Plant, and Equipment** rose from **$29,725 million** to **$35,836 million**, while **Short-term Investments** increased from **$12,696 million** to **$20,424 million**. Additionally, a major boost came from **Digital Assets**, which grew from **$184 million** to **$1,076 million**. Together, these increases contributed to an overall rise of **$15,452 million** in Total Assets, despite slight decreases in Inventory and Other Non-current Assets.  **[0001628280-25-003063_tsla-20241231.htm:77]** 

What drove the surge in Total assets in Q4 2024?

The spike in long-term debt in Q2 2024 was primarily driven by two financing activities. **Automotive Asset-backed Notes** were issued for **$1.10 billion**, and Tesla also entered into a **China Working Capital Facility** in April 2024 which added **$2.75 billion** of non-recourse debt. These actions directly contributed to the significant increase in Tesla’s long-term debt during that period.  **[0001628280-24-032662_tsla-20240630.htm:18]** 

What led to the spike in long-term debt in Q2 2024?

Tesla's short-term investments jumped in Q4 2024 due to several factors. The company experienced **higher cash flow from operations**, generating **$14.92 billion in net cash** in 2024—a notable increase that provided additional liquidity.  **[0001628280-25-003063_tsla-20241231.htm:71]**  Additionally, Tesla's **investment strategy** involved allocating resources to U.S. government securities and other short-term investments, which supported this growth.  **[0001628280-25-003063_tsla-20241231.htm:71]**  Despite incurring **capital expenditures of $11.34 billion**, the robust cash flow allowed the company to continue investing in short-term assets. Moreover, a **47% increase in interest income**, reaching **$1.57 billion**, further highlights the emphasis on maximizing returns from these investments.  **[0001628280-25-003063_tsla-20241231.htm:68]**  These combined factors contributed to the significant jump in short-term investments observed in Q4 2024.  **[0001628280-25-003063_tsla-20241231.htm:77]** 

Why did Short-term investments jump in Q4 2024?

The dramatic increase in **Digital assets, net** in Q4 2024 was primarily due to Tesla adopting a new accounting standard (ASU 2023-08), which required the **fair value remeasurement** of its digital assets. This change led to a **mark-to-market adjustment** on Bitcoin and other assets, including a **$600 million mark-to-market benefit** in Q4. Additionally, Tesla recorded **$589 million in unrealized net gains** on its digital assets and did not record any impairment losses during the quarter.  **[0001628280-25-003063_tsla-20241231.htm:103]** **[0001628280-25-003063_tsla-20241231.htm:68]** 

What caused the dramatic increase in Digital assets, net in Q4 2024?

6391372c1961a3036452596405370256b6ea8195fbd8cc4dce5b0dc9df73cda9

Tesla's operating cash flow in Q1 2023 was significantly lower primarily because of two factors: **an increase of $928 million in net operating assets and liabilities, mainly due to a larger increase in inventory**, and **a decline of $554 million in net income excluding non-cash expenses, gains, and losses**. These factors led to a reduction in net cash provided by operating activities from **$3.995 billion** in Q1 2022 to **$2.513 billion** in Q1 2023, a drop of **$1.48 billion**.  **[0000950170-23-013890_tsla-20230331.htm:37]** 

Why was operating cash flow so low in Q1 2023?

Tesla’s Q4 2023 operating cash flow increased primarily due to a **sharp rise in net income** – reaching **$7,943 million** (up from **$1,878 million** in Q3 2023) driven in large part by a **one-time non-cash tax benefit of $5.9 billion** – coupled with **favorable changes in operating assets and liabilities** that contributed an extra **$482 million** (transitioning from a negative impact of **$(415) million** in Q3 2023). Minor yet positive contributions from **stock-based compensation** and stable amounts for **depreciation, amortization, and impairment** further supported this increase in operating cash flow.  **[0000950170-24-007073_tsla-ex99_1.htm:10]** **[0001628280-23-034588_exhibit991.htm:8]** **[0000950170-24-007073_tsla-ex99_1.htm:2]** **[0000950170-24-007073_tsla-ex99_1.htm:8]** 

What drove the increase in operating cash flow in Q4 2023?

The documents indicate that in Q1 2023, **purchases of investments** increased significantly to **$2,015 million** from **$386 million** in Q1 2022, but they do not provide any specific explanation for this jump.  **[0000950170-23-013890_tsla-20230331.htm:6]** 

What explains the significant jump in investment purchases in Q1 2023?

In Q1 2023, the surge in proceeds from maturities of investments appears to be linked to **Tesla's strategic approach to liquidity management**. The documents suggest that the company adjusted its investment portfolio—particularly its investments in U.S. government and other securities—to better meet its **cash flow needs** and **optimize returns**, thereby managing both liquidity and risk objectives.  **[0000950170-23-013890_tsla-20230331.htm:14]** **[0000950170-23-013890_tsla-20230331.htm:37]** 

What factors contributed to the surge in investment maturities in Q1 2023?

f5b54d9a701855c27958fa85c018db2a378281c7e316ef0a7627f5f21e99da42

Net cash provided by operating activities (USD, millions)

Net cash used in investing activities (USD, millions)

Net cash provided by (used in) financing activities (USD, millions)

Net increase (decrease) in cash and cash equivalents and restricted cash (USD, millions)

Cash and cash equivalents and restricted cash, beginning of period (USD, millions)

Cash and cash equivalents and restricted cash, end of period (USD, millions)

d82e7c08e62c42d94824017b00f06a54cd23e13a3bfa799111f0c4d3387f2585

Tesla Inc (TSLA)

Financials