I. Introduction
Tesla Motors, Inc., founded on July 1, 2003, is an American automotive and truck manufacturer. It is headquartered in Palo Alto, California, U.S and currently led by Elon Musk, who is the Chairman and CEO simultaneously. The last fiscal year of Tesla Motors ended in December 31, 2014 and audit process of Tesla’s financial statements was completed by PricewaterhouseCoopers. Consolidated financial statements which consist of consolidated balance sheets, comprehensive loss, stockholders’ equity, statement of operations and cash flows have been audited in accordance with the standards of the Public Company Accounting Oversight Board (United States). According to auditors, all financial statements presented the financial position
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The Property, Plant, and Equipment account expanded by 85%. Accounts Payable expanded by slightly more than 430% .Reservation installments (an unmerited income account) additionally expanded by approximately 50%. In 2014, net income bounced back with an increase of $220026, after decreasing drastically in 2013. However, this is not the highest net income so far made by Tesla. Gross profit almost doubled compared to that of 2014 and apparently there was increase in research and development due to the development of new car models, factory and Supercharge stations. Long term obligation expanded by just about half and additional paid-in capital expanded by …show more content…
Financial Analysis
The current financial situation of Tesla Motors is sketchy. Its capital related quality comes solely from its stock offerings. As of December 31, 2014, the number of ordinary stock of 123,090,990, which was quite remarkable, has brought about paid in capital of $1,806,617 for the organization. In June of 2014, the organization issued an open offering of 3.7 million shares of stock at $92.00 per offer, and around the same time the organization had a private situation of 595,272 shares at $92.20 per offer, there were 3.8 million shares activity, and 516,743 shares issued to employee stock purchase arrangement. The organization as of now does not have any outstanding preferred stock.
Tesla has never declared or paid dividends; nor does the organization expect to do so in the not so distant future. The profit presentation will be on the choice of the BOD. No profit proclaimed could be the aftereffect of the organization's net loss in the last three years.
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