Lesson 92 - Advanced Accounting Course

Lesson 92: Analyzing Tesla’s Financial Statements and Business Model

🏢 Who Is Tesla?

Tesla, Inc. is a U.S.-based electric vehicle (EV) and clean energy company founded by Elon Musk and others in 2003.
Tesla is not just a car company — it’s a technology and energy firm that builds:

• ⚡ Electric Vehicles (EVs)
  
  

• 🌞 Solar Energy Products
  
  

• 🔋 Energy Storage Solutions
  
  

• 🤖 AI-powered driver-assistance (Autopilot & Full Self-Driving)
  
  

• 🏭 A global Gigafactory network
  
  

Tesla's mission: "To accelerate the world’s transition to sustainable energy."

📑 Tesla’s Business Model Explained

Tesla’s business model blends multiple streams of innovation and income:

🧠 Tesla makes most of its money from selling cars, but its long-term strategy is to become an energy and software powerhouse.

📊 Tesla’s Financial Statements Overview

1. Income Statement (Profit & Loss)

🧠 Tesla has remained profitable since 2020, which was a key milestone in its business maturity.

2. Balance Sheet

✅ Tesla has a strong cash position, which helps it weather economic downturns and invest in innovation.

3. Cash Flow Statement

💡 Tesla reinvests most of its profits into expansion and R&D — prioritizing growth over short-term cash hoarding.

🧠 Strategic Strengths of Tesla

⚠️ Key Financial Risks 

📚 Summary for Students

• Tesla’s financials show a fast-growing company with strong profitability and innovation focus.
  
  

• It mixes traditional product sales with tech-style subscription models and green energy goals.
  
  

• Its financial strength lies in efficiency, cash generation, and reinvestment.
  
  

• Its risks are linked to market valuation, competition, and international operations.