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CASE ANALYSIS: 1) What is your assessment of Tesla's financial performance as shown in case Exhibit 1 below? Explain in detail

EXHIBIT 1 Consolidated Statement of Operations, Tesla Motors, 2010-2013 (in thousands, except share and per share data)

	Fiscal Year Ending December 31
	2013	2012	2011	2010
Income statement data	$ 1,952,684	$ 354,344	$ 101,748	$ 75,459
Revenues:
Sales of vehicles, options and accessories,
vehicle service, and regulatory credits
Sales of powertrain components, battery packs,
and drive units to other vehicle manufacturers	45,102	31,355	46,860	21,619
Development of powertrain components and
systems for other vehicle manufacturers	15,710	27,557	55,674	19,666
Total revenues	2,013,496	413,256	204,242	116,744
Cost of revenues:
Vehicle sales and sales of powertrain components
and related systems to other manufacturers	1,543,878	371,658	115,482	79,982
Development of powertrain systems and
components for other vehicle manufacturers	13,356	11,531	27,165	6,031
Total cost of revenues	1,557,234	383,189	142,647	86,013
Gross proft (loss)	456,262	30,067	61,595	30,731
Operating expenses:
Research and development	231,976	273,978	208,981	92,996
Selling, general, and administrative	285,569	150,372	104,102	84,573
Total operating expenses	517,545	424,350	313,083	177,569
Loss from operations	(961,283)	(394,283)	(251,488)	(146,838)
Interest income	189	288	255	258
Interest expense	(32,934)	(254)	(43)	(992)
Other income (expense), net	22,602	(1,828)	(2,646)	(6,583)
Loss before income taxes	(71,426)	(396,077)	(253,922)	(154,155)
Provision for income taxes	2,588	136	489	173
Net loss	$ (74,014)	$ (396,213)	$(254,411)	$ (154,328)
Net loss per share of common stock, basic and
diluted	$(0.62)	$(3.69)	$(2.53)	$(3.04)
Weighted-average shares used in computing net
loss per share of common stock, basic and diluted	119,421,414	107,349,188	100,388,815	50,718,302
Balance sheet data
Cash and cash equivalents	$ 845,889	$ 201,890	$255,266	$ 99,558
Inventory	340,355	268,504	50,082	45,182
Total current assets	1,265,939	524,768	372,838	235,886
Property, plant, and equipment, net	738,494	552,229	298,414	114,636
Total assets	2,416,930	1,114,190	713,448	386,082
Total current liabilities	675,160	539,108	191,339	85,565
Long-term debt, less current portion		401,495	268,335	71,828
Total stockholders equity	667,121	124,700	224,045	207,048

(Continued )

C-252 PART 2 Cases in Crafting and Executing Strategy

EXHIBIT 1 (Continued)

	Fiscal Year Ending December 31
	2013	2012	2011	2010
Cash low data	$257,994	$(266,081)	$(128,034)	($127,817)
Cash fows from operating activities
Proceeds from issuance of common stock in public
offerings	360,000	221,496	172,410	188,842
Purchases of property and equipment excluding
capital leases	(264,224)	(239,228)	(184,226)	(40,203)
Net cash used in investing activities	(249,417)	(206,930)	(162,258)	(180,297)
Net cash provided by inancing activities	635,422	419,635	446,000	338,045

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