ACCOUNTANCY
COMPANY ANALYSIS OF TESLA—
INTRODUCTION-
Tesla Inc. is an American electric vehicle and clean energy
company headquartered in Austin, Texas. Founded in 2003,
Tesla aims to accelerate the world’s transition to sustainable
energy through innovative products like electric cars, solar
panels, and energy storage solutions. The company is best
known for its electric vehicles, including the Model S, Model 3,
Model X, and Model Y, which have redefined the automotive
industry with cutting-edge technology and performance. Led by
CEO Elon Musk, Tesla has also pioneered developments in
autonomous driving, battery technology, and renewable energy.
With a global presence and rapidly growing influence, Tesla
stands at the forefront of the shift toward a cleaner, more
sustainable future.
HISTORY-
Tesla, Inc. was founded in 2003 by engineers Martin Eberhard
and Marc Tarpenning with a bold vision: to prove that electric
vehicles could be better than gasoline cars in performance,
safety, and design. In 2004, Elon Musk joined the company as
an early investor and later became CEO, playing a pivotal role
in shaping Tesla's future.
In 2008, Tesla launched its first car—the Roadster—an all-
electric sports car that shocked the world by delivering high
speed and a long driving range. It marked the beginning of a
new era in automotive history. In 2012, the Model S sedan set
new standards for electric vehicles, followed by the Model X
SUV, Model 3 sedan, and Model Y crossover. These vehicles
made EVs more accessible and popular around the world.
Tesla didn’t stop at cars. The company expanded into clean
energy with solar panels, the Powerwall, and Megapacks,
aiming to revolutionize energy storage and consumption. By
2024, Tesla had delivered over 7 million vehicles, launched the
futuristic Cybertruck, and advanced its Full Self-Driving (FSD)
software, shaping the future of transportation and
sustainability. Tesla’s story is not just about cars—it's about
transforming how the world moves and powers itself.
Tesla, Inc. – Company Profile
Full Name: Tesla, Inc.
Founded: July 1, 2003
Founders: Martin Eberhard, Marc Tarpenning (Elon Musk
joined later in 2004)
Headquarters: Austin, Texas, United States
CEO: Elon Musk
Chairman: Robyn Denholm
Employees: Over 140,000 (as of 2024)
Industry: Automotive, Energy, Technology
Ticker Symbol: TSLA (NASDAQ)
Core Business Areas
1. Electric Vehicles (EVs):
o Popular models: Model S, Model 3, Model X, Model Y,
and Cybertruck.
o Known for long-range performance, over-the-air
updates, and advanced autopilot features.
2. Energy Products:
o Powerwall, Powerpack, Megapack – battery energy
storage systems.
o Solar Roof and Solar Panels – sustainable residential
energy solutions.
3. Software & AI:
o Full Self-Driving (FSD) and Autopilot.
o Tesla Dojo supercomputer for AI training.
4. Gigafactories:
o Major factories in Nevada, Texas, Shanghai, Berlin,
and Mexico.
Mission Statement
“To accelerate the world’s transition to sustainable energy.”
Tesla Board Members (as of
mid-2025)
Robyn M. Denholm – Chair since November 2018;
auditor/accounting expert; chairs the Audit, Disclosure,
Compensation, and Governance Committees
Elon Musk – CEO and Product Architect; Tesla director
since 2004
Kimbal Musk – Entrepreneur, Elon’s brother; director
since April 2004
Ira Ehrenpreis – Venture capitalist; director since 2007;
chairs Compensation & Governance Committees
James Murdoch – Former media executive; director since
2017; audit/governance lead
Kathleen Wilson-Thompson – Former Walgreens EVP;
joined in 2018; serves on HR, Governance, Disclosure &
Compensation Committees
Joe Gebbia – Airbnb co-founder; director since 2022; on
Audit Committee
J.B. Straubel – Tesla co-founder & former CTO; elected to
board in 2023
Jack (John) R. Hartung – Appointed May 15, 2025; joins
Audit Committee as of June 1, 2025
Vaibhav Taneja – CFO and Chief Accounting Officer since
2023; also serves on Tesla India board
CHALLENGES FACED BY TESLA-
Intense Competition: Growing EV competition from BYD,
Ford, Hyundai, and legacy automakers.
Supply Chain Issues: Shortages of chips, lithium, and other
materials impact production.
Regulatory Scrutiny: Faces global investigations on
Autopilot safety and labor practices.
High Production Costs: Manufacturing costs and raw
material prices remain volatile.
Elon Musk’s Controversies: Public behavior and
comments can affect investor confidence.
Market Saturation: Demand may slow in mature markets
like the U.S. and Europe.
Quality Concerns: Complaints about build quality, service,
and software glitches continue.
BALANCE SHEET-
STATEMENT OF PROFIT AND LOSS-
ACCOUNTING RATIOS-
Tesla Example (2023):
Current Assets = $32.8 billion
Current Liabilities = $28.4 billion
Current Ratio=32.8/28.4=1.15
Tesla can cover its current liabilities 1.15 times with its current
assets.
Debt to Equity Ratio=Shareholders’ EquityTotal Liabilities
Meaning: Measures Tesla’s financial stability—how much it
relies on debt compared to owner's equity.
Tesla Example:
Total Liabilities = $63.2 billion
Shareholders' Equity = $56.8 billion
Debt to Equity=63.2/56.8=1.11
👉 Tesla uses slightly more debt than equity to finance its
operations.
Tesla Example (2023)
Shareholders' Funds (Total Equity) = $56.8 billion
Total Assets = $120.3 billion
Proprietary Ratio=56.8/120.3≈0.472 or 47.2%
Tesla’s Financial Data (2023)
Total Assets = $120.3 billion
Total Debt = $5.9 billion (includes short-term and long-
term borrowings)
✅ Calculation:
120.3/5.9≈20.39
👉 This shows very low debt dependence and high financial
security—a strong position for future growth or downturn
resistance.
Tesla Example (2023)
Revenue (Net Sales) = $96.8 billion
Current Assets = $32.8 billion
Current Liabilities = $28.4 billion
So,
Working Capital=32.8−28.4=4.4 billion
Working Capital Turnover=96.8/4.4≈22.0
Tesla's ratio of 22.0 means it generated $22 in revenue for
every $1 of working capital.
👉 This indicates high efficiency but also suggests that Tesla
operates with a very tight liquidity buffer, which is common
for fast-moving tech-driven firms.
Tesla Example (2023)
COGS = $72.2 billion
Inventory at Start of Year = $12.7 billion
Inventory at End of Year = $13.2 billion
Average Inventory=12.7+13.2/2=12.95 billion
Inventory Turnover=72.2/12.95≈5.57
✅ Interpretation:
Tesla’s inventory turned over 5.57 times in 2023, meaning it
sold and replenished its inventory about 5.5 times during the
year.
👉 This shows efficient inventory management for a
company in the manufacturing sector.
i
Tesla Example (2023)
Operating Profit (EBIT) = $9.6 billion
Revenue = $96.8 billion
Operating Profit Ratio=9.6/96.8×100≈9.9%
✅ Interpretation:
Tesla earned an operating profit of 9.9%, meaning for every
$100 in sales, it kept nearly $9.90 as profit before interest
and taxes.
👉 This reflects efficient operations, especially for a capital-
intensive company.
Tesla Example (2023)
Let’s use:
Net Profit = $14.9 billion
Capital Employed (Total Assets − Current Liabilities)
o Total Assets = $120.3 billion
o Current Liabilities = $28.4 billion
o → Capital Employed = $91.9 billion
ROI=14.9/91.9×100≈16.2%
✅ Interpretation:
Tesla’s ROI of 16.2% means it generated $16.20 profit for
every $100 invested in the business.
👉 This is a solid return, showing efficient use of resources.
Tesla Example (2023)
Net Profit (After Tax) = $14.9 billion
Net Revenue = $96.8 billion
Net Profit Ratio=14.9/96.8×100≈15.4%
✅ Interpretation:
Tesla earns $15.40 profit for every $100 in revenue, after
covering all expenses including taxes.
👉 A 15.4% net margin is strong for the auto industry, showing
Tesla’s ability to manage costs and generate healthy
profits.
CASH FLOW STATEMENT-
