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Tesla Financial Analysis

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Tesla Financial Analysis
TESLA Motor Inc.
Keuka Sailors
Keuka College
MGT-520-MI007
October 19th, 2014
Mr. Andrew A. Kubrich

Table of Contents
Overview 4
Regulatory Credits 5
Risk factors 6
Risks Related to Our Business and Industry 6
Interest Rate Risk 7
Tesla’s SWOT Analysis 7
Strengths 7
Weaknesses 9
Opportunities 9
Threats 10
Common Size 11
Ratio Analysis 12
Cash Flow Estimation 14
TESLA MOTORS Valuation and Recommendations 15

Overview
We design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. We have established our own network of sales and service centers and Supercharger stations globally thus creating a unique business model in the automobile industry. We have operationally structured our business in a manner that we believe will enable us to rapidly develop and launch advanced electric vehicles and technologies. We believe our vehicles, electric vehicle engineering expertise, and operational structure differentiates us from incumbent automobile manufacturers.
Our battery pack and electric powertrain system has enabled us to deliver market-leading range capability on our vehicles at what we believe is a compelling battery cost per kilowatt-hour. Our battery packs use custom electric vehicle lithium-ion battery cells and contain two to three times the energy of any other commercially available electric vehicle battery pack, thereby significantly increasing the range capabilities of our vehicles. Designing an electric powertrain and a vehicle to exploit its energy efficiency has required extensive safety testing and innovation in battery packs, motors, powertrain systems and vehicle engineering.
Regulatory Credits
In connection with the production, delivery and placement into service of our zero emission vehicles in global markets, we have earned and will continue to earn various tradable regulatory credits that can be sold to other manufacturers. We have entered into contracts for


References: Mergent Online. (2008). Tesla Company Financials [Data file]. Retrieved from http://www.mergentonline.com/companyfinancials.php?compnumber=129614&isexcel=1
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