How Tesla changing the way we travel?

Do you want to drive safest car in the world? If yes, than cars from Tesla it’s your choice. Tesla company is not only about electric cars, it’s about changing the way we transport and accelerate shift to renewable energy sources. In this article provided detailed financial information about the company.

Tesla Inc is the legendary vertically integrated sustainable energy company. Company’s vehicles provide long range & high performance, recharging flexibility, energy & cost efficiency, superior design & functionality. Currently Tesla produce and sell three fully electric vehicles:

  1. The Model S sedan (longest range all-electric sedan in the world).
  2. The Model X SUV (longest range all-electric sport utility vehicle in the world).
  3. The Model 3 sedan earned 5* rating from National Highway Traffic Safety Administration in every category and sub-category for it’s safety features. Model 3 scored lowest probability of injury of any car ever tested by US New Car Assessment Program. In Europe Model 3 also awarded 5* rating by European New Car Assessment Program.

Tesla Inc intended to sell in future Model Y, Semi Truck, new version of the Roadster. The Company manufacture and sell energy storage products (Powerwall2 & Powerpack2 home use batteries). Company sell solar energy systems & unable customers to sell energy units (Solar Roof).

Tesla has more than 12.000 Superchargers. Around 99% of the US population is covered by charging network. In China coverage is more than 90%. Tesla’s engineers working on reducing required charging time. V3 Supercharge enables charging rate 1,000 miles per hour. In order to reduce charging time Tesla rolled out new feature called on-route battery warmup (vehicle will heat the battery to achieve optimal temperature for charging & reduce charge time).

Tesla decided to open source Tesla patents in order to make it accessible for that who want to make electric vehicles.

In January 2019 Company started construction of Gigafactory in China (Shanghai). Main purpose of factory on territory of China is reduced cost of vehicle. In this way Company eliminate certain tariffs and drastically reduce transportation cost. Factory construction funded through local debt financing + limited direct capital expenditure by Tesla Inc.

Tesla Inc own only Gigafactory (Nevada) and factory in California (manufacturing, administration, engineering, service, delivery and warehouse). Rest properties Company leased.

Company facing some risks, here’s list of main risks:

  1. Delays in design & manufacture & logistics of Company’s products.
  2. Products cost related risks.
  3. Customers willingness to use electric cars may significantly influence on increase or decrease of demand.
  4. Supply chain risks.
  5. If self-driving technology faces legal or practical complications.
  6. Shortage of supply of lithium-ion cells.
  7. Competition from other car manufacturers.
  8. In order to achieve growth company will require significant investments.
  9. Risks associated with global operations and expansion.
  10. Availability of qualified employees and Elon Musk as CEO.
  11. Possibility of cyber-attacks and software malfunction.
  12. Changes in local and international laws & intellectual property protection & taxation & customer data protection may negatively influence on company’s operations.
  13. Company has significant requirement to service indebtedness.

Tesla Inc has never paid any cash dividends on common stock and Company do not anticipate to pay any cash dividends in foreseeable future.

Company’s financial data taken from Form 10-K.

As per 31 December 2018:

  1. Total revenue stands on $21 billion.
  2. Gross profit is $4 billion.
  3. Long-term obligations is around $13 billion.
  4. Purchase obligations $18 billion.
  5. Company generated $1.5 billion from energy generation & storage.
  6. Company spend $1.4 billion on research and development.
  7. Selling, general and administrative expenses cost in total $2.8 billion.
  8. Company’s total assets almost $30 billion.

Company’s stock listed on NASDAQ under the symbol “TSLA” since 2010 (17$ per share while listing).

Tesla’s share shown significant growth from around $17 per share to $385 in 2018. This stock is volatile and give excellent chance to earn in short time. On average 40 million shares traded per month. Highest amount of shares traded per month was 75 million.

Tesla impact report

In 2018 company published first Impact Report. Level of carbon dioxide exceeded the 400 parts per million threshold (over 35 gigatons per year) which leads to catastrophic impact on the environment. In order to reduce carbon dioxide emissions, citizens have to be thoughtful and make eco friendly choices.

Global greenhouse gas emissions by economic sectors:

  • Electricity & heat production: 25%
  • Agriculture and land use: 24%
  • Industry: 21%
  • Transportation: 15%
  • Other energy: 10%

Tesla brought sustainable and affordable solar energy to Ta’u island in American Samoa. Entire island powered by solar power.

Tesla recycle lithium-ion batteries to recover valuable metals and reuse again. At Gigafactory1, company developing unique battery recycle technology in order to recover critically important materials (lithium, cobalt).

Elon Musk has many innovative ideas and technologies which are changing our world.

Financial data based on form 10-K filled with United States Securities and Exchange Commission.

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