Securities Exchange Act 1934 report signed capacities dates. Signature JON R. MOELLER.#Chairman Board President Chief Executive Officer 04 2023 ANDRE SCHULTEN Financial Officer MATTHEW W. JANZARUK. Vice President Chief Accounting Officer B. MARC ALLEN. SHEILA ANGELA F. BRALY. AMY L. CHANG. JOSEPH JIMENEZ CHRISTOPHER J. KEMPCZINSKI. DEBRA L. LEE. TERRY J. LUNDGREN. CHRISTINE M. MCCARTHY. ROBERT J. PORTMAN. SUBRAMANIAM PATRICIA A. WOERTZ.


design develop manufacture sell lease electric vehicles storage offer services. sell directly grow infrastructure global showrooms service centers Mobile Service body shops Supercharger stations Destination Chargers adoption. emphasize performance styling safety self-driving technology. lower cost ownership manufacturing financial services.


accelerate transition sustainable energy. engineering expertise business model user experience.


segments automotive energy storage.


automotive segment sales leasing electric vehicles regulatory credits. used vehicles non-warranty-sales services body shop parts Supercharging insurance retail merchandise. energy generation storage segment leasing solar incentives.


manufacture five vehicles Model 3 Y S X Cybertruck. 3 four-door mid-size sedan price mass-market. Y seven adults. S four-door full-size sedan X mid-size SUV seven. highest performance longest ranges. 2023 Cybertruck full-size electric truck stainless steel exterior utility strength speed sports.


2022 began production Tesla Semi. planned vehicles markets leveraging Full Self-Driving battery technologies.


Powerwall Megapack lithium-ion battery energy storage. Powerwall energy home commercial facility. Megapack storage commercial industrial utility energy generation customers installations.


software controlling dispatching energy storage systems markets real-time control platforms.


sell solar systems customers channel partners power purchase. purchase components sources competitive pricing adequate supply. design manufacture components.


sell Solar Roof glass tiles energy generation. improve installation capability efficiency developers builders homes.


competencies powertrain engineering manufacturing electric powertrain. designed powertrain systems adaptable efficient reliable cost-effective automotive. offer dual motor powertrain three motors performance Model S X Cybertruck Tesla Semi.


testing R&D battery cells knowledge lithium-ion cell chemistry performance characteristics. costs developed lithium-ion battery cell improved manufacturing.


performance safety battery packs utilize software. optimize performance behavior charging infotainment functions. develop software update over-air updates.


expertise developing technologies self-driving vehicles vision. FSD Computer runs neural networks developing hardware field data networks-world performance.


offer advanced driver assist systems Autopilot FSD options. driver systems provide safety convenience drivers tedious dangerous road travel airplane pilots. improve functions-air updates.


establish autonomous Tesla ride-hailing network access new customer base.


applying intelligence self-driving robotics Optimus humanoid controlled AI system.


leverage technologies vehicles energy storage products. modular approach manufacturing capacity. expertise power electronics interconnect power injection absorption. developed software control dispatch.


engineered Solar Roof aesthetic appeal durability power generation. efficiency inverter electronics. Powerwall.


established in-house capabilities electric vehicles components. computer-aided design durability strength crash simulations development time. achieved stamping casting thermal systems batteries manufacturability weight range cost.


expanding manufacturing designs production markets country-specific demands factory optimizations local workforces. capabilities automation die-making line-building simulations construction.


expertise electrical mechanical civil software engineering energy storage residential utility. modular design Megapack utility battery assembly. customize energy storage solar systems Solar Roof.


sales without low marketing costs. monitor public narrative brand tailor marketing education advertising.


vehicle sales channels include website international stores. some jurisdictions galleries transact sale. infrastructure control costs warranty service electric vehicles affordable Tesla brand rapid feedback.


reevaluate sales strategy globally location-by-location optimize sales channels. sales vehicles cyclical expose volatility.


used vehicle business supports new sales trade-in with sale new. vehicles remarketed third parties. remarket used Tesla vehicles lease returns.


growing global network Tesla Superchargers high-speed. co-locate solar storage costs renewable power. stations routes city centers quick charging. fee free sales programs. November 2021 Supercharger access non-Tesla vehicles sustainable energy November 2022 North American Charging Standard (NACS). electric vehicles charging stations interoperate charging easier efficient. major automotive companies NACS access Supercharger network 2024 production NACS 2025. engaged SAE International NACS standard J3400. monitor network Tesla Superchargers future demand.


work hospitality retail destinations businesses commuting employees charging options single-family multi-family charging.


vehicles updated remotely customers purchase paid options Tesla app in-vehicle interface. functionality options features subscription.


market sell solar storage products residential commercial industrial website stores galleries partners PPA transactions. emphasize simplicity standardization accessibility clean energy acquisition costs.


provide service electric vehicles locations Tesla Mobile Service technicians remotely. problems solutions faster manufacturers dealer networks. connectivity problems remotely.


provide manufacturer’s warranty Tesla vehicles components damage battery retention. offer extended service plans coverage beyond warranties regions.


provide service repairs energy customers warranty. manufacturer’s warranties energy storage extended warranties purchase. limited warranties workmanship.


retrofit solar systems warranties workmanship roof leaks defects weatherization. components warranties.


solar storage contracts performance guarantees system minimum energy generation performance requirements contract.


offer leasing loan financing vehicles North America Europe Asia financial institutions. resale value cover resale loss repurchase vehicles values.


2021 launched insurance product real-time driving rates better promotes safer driving. 12 states plan expand markets decrease cost ownership.


offer financing options solar customers purchase own solar system Powerwall. solar PPAs charge fee kilowatt-hour electricity.


manufacturing facilities. Northern California Buffalo New York Austin Texas Reno Nevada. manufacture vehicles battery packs energy storage solar products.


manufacturing facilities China Germany Berlin affordability reducing transportation manufacturing costs tariffs. March 2023 next Gigafactory Monterrey Mexico. expand production. increase cost-competitiveness adding local manufacturing.


products use thousands parts hundreds suppliers. developed relationships battery cells electronics vehicle assemblies. components shared product lines pricing efficiencies.


automotive procured components systems sourced from single suppliers. multiple qualify suppliers minimize production risks disruptions. mitigate risk safety stock die banks lengthy.


products use materials aluminum steel cobalt lithium nickel copper. Pricing governed market supply. strive execute long-term supply contracts competitive pricing adequate access raw.


ownership impacted government credits incentives policies. business products subject regulations.


impacted government programs. Note 2 Accounting Policies consolidated statements Annual Report 10-K.


August 16 2022 Inflation Reduction Act enacted December 31, 2022. clean energy electric vehicles battery energy storage tax credits. Tesla customers $7,500 tax credits electric vehicles. 2032.


earn tradable credits zero-emission vehicles greenhouse gas economy clean fuel. sell entities emission standards requirements. recognized automotive statements Annual Report Form 10-K.


regulatory regime policies incentives financial mechanisms federal state support.


energy storage systems solar. federal tax credits. Federal Energy Regulatory Commission storage wholesale energy markets. California states procurement targets energy storage qualify California Self Generation Incentive Program. customers benefit. transfer credits contract. energy generation storage revenues consolidated statements Report.


IRA Sections 48 25D Internal Revenue Code standalone energy storage technology eligible tax credit 6% 50% expenditures regardless source customers. tax credits customers phase-out 2032.


. policies incentives mechanisms cost adoption. tax credits cash grants abatements rebates.


IRA Sections 48 48E 25D IRC tax credit 6% 70% commercial expenditures solar energy systems claimed customers or us. tax credits benefit customers phase-out 2032.


U. vehicles National Highway Traffic Safety Federal Motor Vehicle Safety Standards NHTSA bumper standard. FMVSS crash-worthiness occupant protection. current vehicles comply FMVSS exemptions FMVSS. manufacturer self FMVSS NHTSA bumper standard before imported sold.


comply federal laws NHTSA Corporate Average Fuel Economy Theft Prevention Act labeling Early Warning Reporting warranty recalls Standing General Order assistance compliance safety recall reporting. Automobile Information Disclosure Act price optional equipment pricing. fuel economy ratings. Department Transportation Environmental Protection New Car Assessment Program ratings NHTSA.


vehicles sold outside. subject foreign compliance safety regulations. different require redesign retesting. impact new features.


laws self-driving vehicles evolving restrictions features designs. no federal. regulations NHTSA published guidelines retains authority investigate safety compliance vehicle. U. states have restrictions operation registration licensure self-driving vehicles states considering. regulatory patchwork increases legal complexity.


markets United Nations Economic Commission Europe requirements restrict design advanced driver-assistance self-driving features use. laws hinder introducing self-driving vehicles.


markets China self-driving regulation. regulations differ U. S. ECE complexity features.


U. S. state laws regulate manufacture distribution sale service automobiles require manufacturers dealers sell residents. Certain states laws permit manufacturers restrict warranty repairs. sell vehicles residents conduct sale out state. states opened “galleries” educational sales occur.


automobile associations challenged legality operations court used processes operate stores expand. lobbied state licensing agencies legislators interpret ownership retail. expect challenges continue intend fight efforts.


battery packs. international regulations goods lithium-ion batteries risk. conduct testing compliance.


use lithium-ion cells voltage battery packs vehicles energy storage. use storage disposal regulated subject changes. agreements recycling piloting recycling technology.


subject state federal regulations solar battery storage providers sellers. interconnection agreements utilities. Sales non-sale equipment leases challenges.


states U. make net energy metering solar customers. allows systems utility grid electricity purchases bill credit excess energy. regulators utilities reduced eliminated benefit proposed.


worldwide automotive market competitive expect more competitive future automobile manufacturers companies entered electric vehicle market.


vehicles compete segment classification propulsion technology. Cybertruck pickup trucks Model S X premium sedans SUVs Model 3 Y small sedans compact SUVs. Competing products internal combustion manufacturers electric alternative fuel vehicles. announcements introductions promote electric market attractiveness. manufacturers electric vehicles U. S. China Europe prospective manufacturers developing. manufacturers offer hybrid vehicles plug-in versions.


increasing competition vehicle self charging features services expect compete Autopilot FSD neural network Supercharger infotainment.


market energy storage competitive established emerging companies introduced similar alternatives. compete price energy density efficiency. specifications features brand modular scalable competitive advantage.


competitors solar energy traditional local utility companies. compete based on price electricity. with products similar. Many install systems others provide financing. believe significant expansion opportunity regulatory environment conducive to renewable energy.


emphasis on innovative approach proprietary designs value uniqueness product portfolio. protect intellectual property rights patents trademarks copyrights trade secrets confidential information employee nondisclosure agreements contractual arrangements. priority obtaining patents protection operate innovations designs products protect defend product portfolio. adopted patent policy initiate lawsuit infringing patents electric vehicles good faith. platform electric vehicles companies world.


Tesla transition sustainable energy. carbon emissions energy generation consumption designing manufacturing energy transportation ecosystem. building factory efficient per-unit waste reduction resource consumption water energy usage. enhancing sustainability carbon footprint supply chain.


committed sourcing responsibly materials suppliers social environmental sustainability responsible sourcing. zero-tolerance policy child forced labor human trafficking Organization Economic Co-operation Development Due Diligence Guidelines feedback. safety worker engagement. incidents per vehicle drop production volumes increase. strive employer choice compelling jobs benefits.


sound corporate governance critical goals ESG. governance framework oversight affairs business ethics. ESG Sustainability Council presents Board oversees ESG impacts initiatives priorities.


competitive edge Tesla quality employees. investments workforce strengthening desirable. December 31, 2023 employee headcount 140,473.


created environment growth two-thirds (65% managers promoted non-manager 43% management employees Tesla five years. growth 35% two years career development sustainable future.


retain employees ownership Tesla 89% health benefits free counseling parental leave time off zero-premium medical plan first day employment.


recognize positive impact offer skills training development programs.


. Tesla programs career opportunity •Technician Trainee automotive maintenance training industry certification. prepares. 2023 hired 1,900 Trainees U. Germany China. (Manufacturing Service intensive training Technician Trainee. partnered colleges academies U. S. United Kingdom Germany. 2023 hired 350 trainees manufacturing service full-time employment. •Internships Tesla hires 6,000 students. full-time positions post-internship. •Military Fellowship Transition Programs exiting military service. career guidance civil workforce. European Defence Ministries U. S. Chamber of Commerce’s Hire our Heroes. high-performing full-time roles veteran talent pipeline. •Apprenticeships globally-job training. one four years training. hires U. S. Australia Hong Kong Korea Germany.Development Program Tesla financial resources coursework experience career. hired 373 graduates 2023 goal 2024 600 students annually Fremont Factory Nevada Texas New York. Development Program 2024 targets graduates engineering. Austin Community College high-demand technologies. manufacturing.


opportunities employees Employee Educational Assistance Program. spring 2024 pursue certificates degrees. virtual self-paced education path expand knowledge career.


Tesla employees difference. factories offices stores service centers. policies fairness respect. hire evaluate skills performance. trustworthy excellence collaborate. harassment retaliation violence intimidation discrimination race color religion origin gender sexual orientation identity age disability veteran status.


Anti-harassment training new hire orientation leaders. run leadership development programs enhancing skills address employee concerns.


Employees misconduct safety contacting integrity line Take Charge notifying Human Resource Partner management. Concerns reviewed investigators trends outcomes remediation controls. Human Resource Partners visible culture engagement business leaders.


file reports amendments Annual Reports 10-K Quarterly Reports 10-Q Current Reports 8-K proxy statements SEC. SEC maintains website. reports proxy issuers. website. tesla. com reports amendments proxy statements investor relations website. tesla. website not incorporated Annual Report Form 10-K.


consider risks other information report affect business financial condition future results. not only company. Risks not may affect business financial operating results.


experience delays launching production control manufacturing costs.


experienced launch production ramp delays new products features. encountered supplier issues delays ramp Model X challenges ramping automation Model 3 processes. may introduce new manufacturing processes design features. no guarantee processes.


future business depends increasing production mass-market vehicles. implement maintain efficient cost-effective manufacturing capabilities processes supply chains achieve design quality output rates facilities California Nevada Texas China Germany Mexico. hire train compensate skilled employees. challenges arise production ramps address processes costs. delays ramps cost profitability targets.


experienced delays launching energy storage Solar Roof vehicles features services artificial intelligence. delays design construction regulatory approvals manufacturing facilities.


delay complication ramping production current future high quality harm brand business prospects financial operating results.


suppliers deliver components schedules prices quality volumes acceptable manage.


products contain thousands parts purchased from hundreds suppliers to component shortages. changes business conditions materials pricing inflation labor issues wars trade policies disasters health epidemics trade shipping disruptions port congestions cyberattacks factors beyond control could affect. global shortage semiconductors early 2021 challenges impacted supply chain production. if suppliers forecast production insolvency may reduce access components new suppliers. unavailability component production delays idle facilities product design changes loss access technology tools capacity expansion obligations customer contracts. increases production product design changes additional components. suppliers unwilling meet timelines cost quality volume needs increase costs. new facilities lines localized procurement. secure sources develop replacements for components no assurance quickly.negotiate suppliers cost reductions avoid changes source less expensive redesign increases materials pricing. harm business prospects financial condition results.


vehicle production increases forecast purchase warehouse transport components manufacturing internationally. match timing purchases automation inventory complexity supply incur production disruption storage transportation write-off costs harm business results.


construction timelines costs production ramps new factories difficulties demand.


increase production vehicles affordable local supply chains streamline delivery logistics construction ramp current future factories. production


uncertainties new manufacturing operations compliance regulatory procurement construction environmental operational licenses approvals expansion supply chain constraints hiring training retention pace production equipment high-quality units. production proprietary battery cells packs new factories incorporate design manufacturing changes into vehicles. issues timelines costs capital efficiency production capacity debt financing demand business prospects results financial condition.


grow global sales delivery installation servicing charging networks manage growth.


success sales capabilities. targeting global demographic broad range customers limited experience projecting demand pricing products. produce international variants limited factories if demand expectations inaccurate may generate deliveries vehicles size operations region. energy products services success forecast demand markets.


independent dealer networks responsible delivering vehicles. production volumes faced challenges deliveries increasing volumes international markets transit times. deployed delivery models touchless no guarantee globally. energy products increase production installation capabilities. production delays demand business financial results.


unique expertise recommend by us or authorized professionals. delays servicing capacity issues reliability higher-volume 3 Y overburden servicing capabilities parts inventory. increasing Tesla vehicles requires Supercharger stations connectors.


no assurance business sales delivery installation servicing vehicle charging targets globally projections pace growth infrastructure expectations. plans require cash investments management resources no guarantee sales installations avoid cost overruns personnel. ensure compliance regulatory requirements sale installation servicing electricity Superchargers. growth harm brand business prospects financial condition operating results.


maintain grow access battery cells development control costs.


dependent on supply lithium-ion battery cells for vehicles energy storage products require more grow business. rely on Panasonic Contemporary Amperex Technology. qualified limited suppliers limited flexibility. disruption supply could limit production. intend to supplement with manufactured by us more efficient manufacturable cost. efforts develop manufacture required significant investments no achieve targets timeframes.


curtail vehicle energy storage production procure cells costs harm business results.


cost production battery cells depends prices availability raw materials lithium nickel cobalt metals. prices fluctuate supply unstable market conditions global demand. increased production electric storage suppliers meet volume needs. meet timelines cost quality needs. reduced availability access growth increases prices reduce profitability. inability meet demand price increases harm brand growth prospects results.


future growth electric automotive industry competitive cyclical volatile.


increased interest adoption electric vehicles market Tesla vehicles develop slowly demand decreases business prospects financial condition operating results harmed.


electric vehicles small percentage sales. market affected by •perceptions about features quality safety performance cost limited range access charging facilities •competition alternative cost oil gasoline energy regulations economic incentives conditions •concerns future viability.


target demographics vehicles competitive. Sales cyclical volatility. predict global trends impact consumer demand. monitor macroeconomic conditions optimize evolve business project demand infrastructure deploy production workforce resources. Rising interest rates consumers back spending harm demand business operating results. unfavorable market conditions maintain operations business prospects financial condition operating results.


face competition products services competitors.


worldwide automotive market competitive future. manufacturers entered electric alternative fuel vehicles hybrid plug-in hybrid fully electric self-driving software. competitors offer electric vehicles China Europe produce electric exclusively future. government economic incentives manufacturers local competitors impact profitability. competitors more resources design development manufacturing distribution promotion sale support. Increased competition lower sales price reductions revenue shortfalls loss customers market share harm business financial condition operating results.


face competition energy from manufacturers developers installers providers large utilities. Decreases prices electricity utilities make products less attractive defaults.


lithium-ion cells Gigafactories harm vehicle energy storage.


plan grow vehicles energy storage depends lithium-ion battery production Panasonic Gigafactory Nevada. produce vehicle components battery modules drive units manufacture energy storage products. maintain operations hire retain personnel harm business results.


high volumes lithium-ion cells battery modules packs stored recycled facilities. mishandling. implemented safety procedures no assurance safety issue fire. disruptions harm brand business.


risks international operations economic tax labor conditions.


subject to legal regulatory political uncertainty social environmental economic conditions jurisdictions unpredictable. operations. create risks conforming safety organizing entities foreign business locations attracting customers taxes regulations permit requirements contractual rights trade restrictions customs tariffs price controls preferences products. monitor tax legislation Organization Economic Cooperation plan base erosion profit shifting. conditions increase costs impact management harm business.


business suffer products defects fail take longer.


products contain design manufacturing defects software hardware repair features take longer restricted onerous regulation ability to develop market sell products may harmed delivery delays recalls liability breach of warranty consumer protection claims expenses. capability performance no guarantee changes software equipment result in functional disparities perform forecast. attempt remedy issues may not timely hamper production not satisfy customers. performed extensive internal testing products features limited frame reference evaluate long-term quality reliability durability performance characteristics exposure external attacks. identify defects pre-production sale latent defects to detect control prior to sale installation.


defend insure liability.


automobile industry experiences product liability claims face risk vehicles. our vehicles involved in accidents death injury accidents Autopilot Enhanced Autopilot FSD features public attention NHTSA’s Order reports crashes advanced assistance systems. experienced expect claims regulatory scrutiny misuse failures misrepresentations of new technologies. battery packs lithium-ion cells. release energy ignite materials. battery packs contain release energy no failure high-speed crash. solar energy systems storage products generate electricity potential to fail cause injury. product liability claim to lawsuits damages product recalls redesign efforts meritless claim negative publicity expensive time-consuming. self-insure against risk product liability claims claims paid from company funds not insurance.


maintain public credibility business succeed.


maintain business credibility confidence customers suppliers analysts investors ratings agencies financial viability business prospects. limited operating history customer unfamiliarity delays scaling manufacturing delivery service competition uncertainty future electric vehicles quarterly production sales performance other factors. Tesla’s products business results statements actions management commentary third parties. criticism speculation management team. negative perceptions harm business raise funds.


grow manage compliance financing credit risks programs.


offer financing North America Europe Asia financial institutions. offer financing local subsidiaries markets. arrangements specified models operating leases small portion purchase price lease payments term lease. offered arrangements customers solar energy systems fixed payment lease finance purchase electricity. national financial regulations consumer protection laws enforcement actions penalties.


profitability of directly-leased vehicles depends on residual values values may fluctuate depending on supply demand economic cycles pricing new vehicles. adjustments to prices may impact residual values reduce profitability leasing program. funding growth rely on financing business partners. If unable to fund leasing alternative financing programs available may grow vehicle deliveries. if leasing business grows may suffer if manage residual risk.


provided resale value guarantees to customers partners financing programs sell vehicles-determined amounts. resale values fluctuations financing pricing changes. If resale values lower amounts financial condition operating results harmed.


vehicle solar energy financing energy storage sales expose customer credit risk. economic downturn customers satisfy payment obligations. default incur credit losses impairment charges.


manage obligations Research Foundation University York Gigafactory.


party operating lease research development agreement State University of New York “SUNY. agreements construction use Gigafactory New York Solar Roof solar products energy storage Supercharger components lessor-approved functions. obligated meet employment targets minimum personnel New York Buffalo spend $5. 00 billion capital operational expenses costs 10 years April 30, 2018. December 31, 2023 excess targets. expect grow operations Gigafactory Buffalo failure obligations $41 million SUNY Foundation termination lease penalties adjust operations. harm business financial condition operating results.


unable attract hire retain employees compete.


loss employees workforce disrupt operations delay development products. dependent Elon Musk Tesla Chief Executive Officer. employment agreement attract retain senior leadership. future success depends attract engineering manufacturing marketing sales service installation technology support personnel high-volume product sales market expansion technological innovations. risks business financial results.


Employees leave Tesla choose competitive labor market negative publicity. regions operations engineering centers strong competition for skillsets electric vehicles engineering electrical building construction expertise. compete with mature financial start-ups companies short-term growth.


compensation philosophy reflects startup origins equity awards benefits incentives with interests stockholders. seek approval increases awards equity incentive employee stock purchase plans. If approvals expend additional cash retain.


Elon Musk Tesla Chief Executive.


dependent Elon Musk Tesla Chief Executive Officer. Musk active devote full. Chief Executive Technical Space Exploration Technologies. space Chairman Technical X Corp. social media involved technology ventures.


systems providers cyber-attacks breaches theft claims litigation investigations liability damage adverse consequences.


technology product procurement inventory production sales service logistics dealer financial tax regulatory compliance. deployment. measures theft data breaches sabotage-attacks vulnerable malware ransomware viruses denial-of-service phishing social engineering hacking unauthorized access defects breakdowns damage interruptions malfunctions power outages terrorism vandalism security breaches incidents.


security incident unauthorized access damage loss destruction alteration dissemination data intellectual property personal information products vehicles disrupt business harm reputation data breach laws litigation regulatory investigation corrective action verify database contents liability laws contractual obligations. costs legal financial exposure reputational harm.


rely on service providers incidents business. significant supply chain attacks. service providers including workforce management software provider subject to ransomware security incidents guarantee systems breached defects bugs vulnerabilities. security measures limited malicious third parties circumvent measures.


implementation maintenance require management time support cost risks expanding implementing updating disruptions business operation. risks affect manage data inventory procure manufacture sell deliver service protect intellectual property tax laws regulations.


if implement maintain expand systems operations disrupted report financial results impaired deficiencies in internal control financial reporting impact results. proprietary information compromised misappropriated reputation affected. If systems operate expend resources find alternative sources.


unauthorized control systems loss confidence.


products contain complex information technology systems. vehicles energy storage built-in data connectivity remote updates. implemented security measures prevent unauthorized access networks malicious entities attempted may modify alter networks functionality user interface performance characteristics access data. encourage reporting vulnerabilities reporting policy aim remedy vulnerability. no vulnerabilities exploited before identified remediation.


unauthorized access to products systems loss of data in legal claims investigations. reports unauthorized factors perception harm brand prospects operating results. subject of reports past.


business affected union activities.


employees at union higher costs risk work stoppages. regulations jurisdictions outside U. S. mandate employee participation in industrial collective bargaining agreements work councils consultation rights. best work environment employees may join union signatory. labor unions unfair labor practice charges National Labor Relations Board may. unfavorable outcome for Tesla treatment. dependent upon companies unionized work forces. work stoppages strikes delay manufacture sale harm business results.


choose compelled recalls actions.


manufacturing company manage risk product recalls. Recalls from hardware software safety concerns non-compliance. testing investigations regulators industry groups compel negative perceptions safety. future initiate recalls products safety defect noncompliant with laws U. Federal Motor Vehicle Safety Standards. recalls systems expense supply chain complications service burdens harm brand business prospects financial condition operating results.


current future warranty reserves.


manufacturer’s warranty Tesla vehicles. warranties energy generation storage systems installation maintenance. components not manufactured pass manufacturers’ warranties retain warranty responsibilities. energy generation storage contracts performance guarantees energy generation performance requirements. bear risk electricity production performance shortfalls third party manufacturers. risks exacerbated manufacturers operations fail honor warranties.


warranty reserves inadequate future claims financial condition operating results harmed. reserves include estimates costs repair items based on actual claims costs future claims. estimates uncertain changes historical experience products introduced may cause changes reserves.


insurance protect business risks.


subject to losses from liability accidents acts God claims no insurance coverage. maintain much insurance coverage companies some. policies include deductibles retentions limitations exclusions insurance coverage future losses. loss uninsured policy limits amounts harm financial condition operating results.


debt agreements covenant business.


debt facilities contain future debt agreements covenant restrictions limit business restrictions incur additional debt create liens. maintain liquidity. ability respond business economic conditions transactions obtain additional financing. failure comply debt covenants default accelerate obligation repay debt. If debt accelerated funds repay.


Additional funds available need.


business future plans expansion capital-intensive cash inflows outflows fluctuate. need additional funds equity debt securities credit institutions fund costs developing manufacturing products unplanned expenses strategic investments refinance consolidated indebtedness. additional funds available favorable terms. If raise funds financial condition results business prospects affected.


impacted obsolescence equipment.


depreciate cost manufacturing equipment over useful lives. product cycles manufacturing technology change update processes quickly. improvements engineering manufacturing expertise efficiency less equipment. production discontinue equipment different equipment. useful life equipment retired early shortened depreciation results harmed.


no guarantee cash flow incur additional indebtedness.


December 31, 2023 subsidiaries $4. 68 billion indebtedness Note 11 Debt statements Annual Report Form 10-K. indebtedness adverse economic conditions. incur secure recapitalize.


ability make scheduled payments principal interest indebtedness conversion convertible senior notes refinance indebtedness depends future performance economic financial competitive factors beyond control. business generate cash flow obligations future necessary capital expenditures. unable cash adopt alternatives investments selling assets refinancing additional equity capital onerous. refinance indebtedness capital markets financial condition. payments limited by law regulatory authority agreements future indebtedness. engage activities default harm financial condition operating results.


exposed fluctuations.


transact business globally multiple currencies foreign currency risks related revenue costs operating expenses subsidiary debt other U. dollar. revenues foreign currencies strengthening U. dollar reduce revenues. portion costs expenses denominated in foreign currencies. offsetting revenues. dollar depreciates costs. increase margins suffer. operating results harmed.


property infringement claims time-consuming expensive affect freedom business.


competitors third parties hold patents copyrights trademarks proprietary rights prevent limit use develop sell market products services business. holders assert urge licenses bring suits infringement costs negative publicity management attention.


protection brands technologies information limited countries difficult misappropriation infringement. confidentiality guarantee deter misappropriation. theft unauthorized use trade secrets information affect competitive position.


endeavor obtain protect intellectual property rights advance strategic initiatives no assurance identify protect strategic mitigate risk suits legal demands. consider licensing agreements no assurance licenses acceptable terms litigation licenses increase operating expenses. if infringed intellectual property rights may required cease making selling incorporating pay damages license royalties redesign products services establish maintain alternative branding. required brand business financial condition operating results may harmed.


scrutiny expectations practices costs risks.


Companies scrutiny environmental practices. Investor advocacy groups institutional investors funds influential investors focused on ESG practices non-financial impacts. mission transition sustainable energy ESG practices meet expectations costs brand business.


operations disasters wars health epidemics.


impacted by disasters wars health epidemics weather conditions climate change power outages control. Fremont Factory Gigafactory Nevada seismically active Northern California Nevada Gigafactory Shanghai flood-prone. Gigafactory Texas experienced winter storms 2021 utilities transportation. major disasters earthquakes floods climate headquarters production facilities production shipment. COVID-19 pandemic impacted markets manufacturing supply chains employment consumer behavior. consequences conflict Russia Ukraine embargoes regional instability geopolitical shifts airspace bans retaliatory action Russian. incur expenses delays control business results financial condition.


Demand products impacted status government economic incentives.


Government economic incentives electric vehicles. tax exemptions credits rebates reduced eliminated amended exhausted. incentives electric vehicles expired cancelled unavailable replaced impacted sales. incentives amended benefits manufacturers local suppliers characteristics not Tesla. developments impact demand customers adjust pricing modifications.


governmental rebates tax credits financial incentives solar storage costs encourage customers solar funds. incentives expire funding exhausted renewable energy rates. net metering customers receive bill credits solar electric load. benefit net metering proposed reduced contested before Federal Energy Regulatory Commission. reductions terminations incentives harm business prospects financial condition results products less competitive cost capital investment new financing funds.


we fund investors claim. federal tax credits state incentives based solar energy storage systems. authorities audited values determined. determinations adverse tax consequences obligation payments.


subject laws costs prohibitions changes operations products.


grow manufacturing operations subject complex environmental health safety laws U. S. China Germany storage recycling disposal hazardous materials post-consumer products constructing expanding maintaining facilities. environmental climate change laws costs compliance remediations changes operations failures expenses delays fines.


employee headcount operations scrutiny investigations defend. harm brand employees business financial condition. subject laws regulations supply manufacture import sale service performance products abroad. countries outside U. S. vehicle safety fuel economy emissions different U. additional investment vehicles systems regulatory compliance. review certification foreign agencies compliance foreign reporting recall management systems.


offer vehicles Autopilot FSD Capability features drivers dangerous road travel drivers. Autopilot technology. international federal state regulations may affect design performance sale marketing registration operation Autopilot FSD future including self-driving vehicles operated human driver. includes vehicle standards not. regulations change complex conflicting regulations delay restrict prohibit functionalities vehicle designs business.


manufacturer installer service provider solar storage supplier electricity provider grid services virtual power plant impacted by federal state local regulations policies import export components electricity pricing interconnection generation storage grid sale electricity third party systems. import export interconnection maintenance solar systems deter customers threaten economics contracts sales harm business financial condition operating results.


failure comply U. international laws harm.


failure vendors comply with privacy federal international privacy data protection security laws regulations information in regulatory actions legal liability fines damages audit requirements costs. expenses operational changes compliance unsuccessful challenge adverse publicity costly response defense. privacy laws uncertainty system changes increase costs impact adverse publicity harm reputation. General Data Protection Regulation applies information European Union protection measures risk fines noncompliance. North American operations subject to complex federal privacy laws regulations California Consumer Privacy Act obligations. privacy cybersecurity laws in China.


laws inconsistent. Complying costs enhancements data practices. Noncompliance penalties legal liability.


risks privacy vehicle manufacturer obligations cybersecurity data privacy localization international operations. audit data protection


investigations legal proceedings disclosure sensitive data unfavorable terms. personal information expend resources data breach requirements third parties obtain data loss. major breach network security systems fines penalties damages harm brand prospects operating results.


subject liability penalties sanctions consequences investigations.


cooperating government investigations Note 15 Commitments Contingencies consolidated financial statements Annual Report Form 10-K. no agency wrongdoing. predict outcome possibility liability penalties sanctions SEC. Department of Justice legal action. expect incur costs requests information subpoenas defending proceedings.


face regulatory challenges sell.


intend leverage effective sales strategies website sell vehicles stores states U. S. laws-consumer sales model. asserted laws states limit dealer licenses state vehicle regulators assertions persist. decisions regulators vehicles challenged by dealer associations laws. prevailed lawsuits belief state franchise laws not apply manufacturer franchise dealers. some states associations propose laws prevent obtaining dealer licenses sales model. few states passed legislation operate dealer licenses stores operate. application state laws difficult predict.


Internationally laws in may restrict sales business practices. laws complex difficult change over time. regulatory limitations obstacles vehicles may harm financial condition operating results.


price common stock volatile.


trading price common stock volatile fluctuations factors beyond control. experienced-day high $299. 29 per share low $152. 37 per share. stock market technology companies experienced extreme price volume fluctuations unrelated operating performance. large proportion common stock may traded by short sellers supply demand influencing volatility. Public perception factors outside control impact stock price. securities class action litigation filed against us. defend actions judgment future costs diversion attention resources.


financial results vary operating costs.


expect period-to-period financial results vary operating costs fluctuate design develop manufacture new products increase production capacity between periods. revenues fluctuate introduce products new markets. quarter-to-quarter comparisons not meaningful indicators future performance. financial results may not meet expectations equity research analysts ratings agencies investors short-term results. trading price stock fall.


fail meet expectations stock price decline.


provide guidance expected financial business performance. identifying factors predicting future events uncertain guidance accurate timing product manufacturing ramps. guidance based assumptions production sales volumes sales prices supplier commodity costs planned cost reductions. guidance varies results market value common stock could decline.


Elon Musk sell common stock pledged personal loan sales stock price decline.


banking institutions credit to Elon Musk Chief Executive used shares common stock public offerings placements prices-party. not party to loans secured by pledges Tesla common stock owned. Musk. If price common stock. Musk may forced to sell shares loan obligations. sales could cause price decline. Musk may required to sell shares stock.


Anti-takeover documents laws notes takeover.


certificate incorporation bylaws afford rights powers board delay acquisition undesirable. subject to Section 203 Delaware General Corporation Law provisions limit ability stockholders effect business combinations. terms convertible senior notes require repurchase fundamental change takeover. delaying change control limit opportunity stockholders premium affect price.


assessing risks cybersecurity 106 Regulation S-K. operational property theft fraud extortion harm violation data privacy.


cybersecurity risk management systems. privacy compliance multi approach third party assessments IT Audit security governance risk compliance reviews. conduct privacy cybersecurity reviews audit data policies penetration testing bug bounty program employee training monitor laws data protection security implement changes.


implemented incident response breach management preparation detection containment eradication recovery post-incident analysis. Information Product Security Compliance Legal teams.


Security evaluated prioritized response remediation. materiality operational business impact privacy.


conduct tabletop exercises cybersecurity. professionals collaborate risk form detection remediation strategies.


engage auditors consultants cybersecurity programs. 2023 Information Security Management System ISO/IEC 27001:2013.


risk management program assesses third party risks risks vendors suppliers providers. Cybersecurity risks evaluated selection oversight providers fourth-party risks data. risk management third-party cybersecurity compromise incidents risks.


describe risks cybersecurity threats business strategy financial condition technology systems providers customers users cyber-attacks incidents data breaches theft claims investigations liability reputational damage adverse risk disclosures Item 1A Annual Report Form 10-K.


Cybersecurity risk management Board management. Audit Committee cybersecurity. receive updates quarterly senior management Information Security Product Security Compliance Legal teams. risks data privacy incidents information security initiatives. Board members engage ad hoc conversations cybersecurity discuss updates risk.


cybersecurity risk overseen by Information Security Product Security Compliance Legal teams. 15 years experience technology auditing compliance. monitor prevention mitigation detection remediation cybersecurity incidents incident response plan Audit Committee.


headquartered Austin Texas. facilities include North America Europe Asia manufacturing warehousing engineering retail service Supercharger sites administrative sales offices. facilities support reporting segments suitable business. lease facilities manufacturing. facilities. Gigafactory Texas Fremont Nevada Berlin-Brandenburg Germany Shanghai New York Megafactory California


own building land use rights 50 years. assets.


proceedings Note 15 Commitments Contingencies statements Annual Report Form.


disclosed Item 103 Regulation S-K environmental regulations civil penalties exceed $1 million. proceeding material business financial condition penalties.


attorneys Tesla’s waste segregation. Health. Code § 25100. Civil Code § 1798. Tesla implemented remedial measures training audits waste settlement discussions ongoing. business.


EQUITY STOCKHOLDER EQUITY SECURITIES


common stock traded NASDAQ Global Market June 29, 2010. initial public offering $1. 13 share June 28, 2010 three-for-one split August 2022 five-for-one August 2020.


January 22, 2024 9,300 holders common stock. holders shares banks brokers institutions.


never declared paid cash dividends common stock. anticipate paying cash dividends. future discretion board financial condition results capital requirements business conditions factors.


performance not Section 18 Securities Exchange Act 1934 incorporated filing Tesla Inc. Securities Act 1933 except set reference filing.


graph shows comparison January 1 2019 December 31, 2023 return common stock NASDAQ Composite Index companies 3711 Vehicles Passenger Car. returns based historical not future performance. Index investment $100 January 1, 2019 reinvestment dividends. never declared paid cash dividends anticipate.


DISCUSSION FINANCIAL RESULTS


analysis financial statements notes Annual Report Form 10-K. products technology competitive strengths Item 1-. financial condition Part II Item 7. Financial Condition Annual Report 10-K filed Securities Exchange Commission January 31, 2023.


accelerate transition sustainable energy. design develop manufacture lease sell vehicles solar storage. maintenance charging insurance services. artificial robotics automation.


2023 produced 1,845,985 delivered 1,808,581. increasing production capacity costs technologies supply chain FSD affordability efficiency new products expanding infrastructure charging.


deployed. 72 GWh storage 223 megawatts solar. production Solar Roof increasing share retrofit.


2023 revenues $96. 77 billion $15. 31 billion. ramp production deliveries deployments invest research AI software fleet profits.


2023 net income $15. billion $2. billion. non-cash tax $5. billion valuation deferred tax assets. cost reductions.


2023 $29. billion $6. billion 2022. cash flows $13. 26 billion $14. 72 billion $1. 47 billion. Capital expenditures $8. 90 billion $7. 16 billion $1. 74 billion. growth.


summary status production vehicle models Annual Report Form 10-K Production Location Model Status Fremont Factory S X 3 Y Shanghai Berlin-Brandenburg Texas Nevada Semi production Generation Platform Roadster


focused growing manufacturing capacity Cybertruck next generation platform ramping vehicles increasing rate efficiency factories. next ramp next generation platform battery cells high-volume output costs longer range. goals improve performance decrease costs increase affordability customer awareness.


plans uncertainties manufacturing new technologies projects constraints labor shortages future impact. third quarter 2023 decline production shutdowns upgrades. set technological targets battery cells iterative manufacturing design improvements vehicles new factory.


cost reduction innovation localized procurement manufacturing key affordability. demand awareness improving performance functionality artificial Autopilot FSD new vehicles Cybertruck. benefit electrification environmental regulations initiatives.


operate in cyclical industry sensitive to political regulatory uncertainty trade environment compounded by inflationary pressures energy prices interest rate fluctuations liquidity. inflationary pressures increased. central banks raised interest rates vehicle lease finance. sales cyclical volatility. competitors enter sustainable transportation adjust. suppliers’ liquidity allocation affected by challenges automotive industry reduce access components cost. macroeconomic industry trends pricing order rate operating margin. government economic incentives electric vehicles impact sales. cost reduction improved production innovation efficiency lower logistics costs operating leverage benefit new products future growth.


production increases increase delivery capability bottleneck. committed reducing vehicles third month reduce cost per vehicle. expand manufacturing increase delivery servicing charging infrastructure maintain reliability optimize Supercharger locations cost effectiveness customer satisfaction. manufacturers North American Charging Standard Superchargers expand network availability. focused capability efficiency servicing operations.


long-term success increasing margins volumes. production energy storage demand construction new Megafactory Shanghai ramp Megafactory Lathrop California. storage deployments vary project milestones. committed retrofit solar energy low-cost online ordering. installation capabilities price efficiencies Solar Roof. maintain battery cell supply qualified personnel.


capital expenditures difficult core impacted market. ramping new products manufacturing facilities three continents piloting battery cell technologies expanding Supercharger network investing autonomy artificial training pace spend priority production adjustments efficiencies new projects. growth inflation expect capital expenditures exceed $10. billion 2024 $8. to $10. billion following two fiscal years.


business generating cash flow capital spend better capital management shorter days sales sales growth positive cash generation. cash flows vertical integration expand product roadmap financing. likely heightened capital expenditures capital-intensive projects rising material prices supply chain labor expenses trade labor availability. expect self-funding support sales.


consolidated financial statements prepared accounting principles. (“GAAP”). estimates assumptions assets liabilities revenues costs expenses disclosures. base estimates on historical experience assumptions. Changes estimates likely. results differ estimates. evaluate estimates assumptions. differences future financial statement presentation financial condition cash flows.


estimates resale value sales return reserves collectability accounts financing receivables inventory valuation warranties assets goodwill financial instruments residual lease vehicles solar energy systems. assessed impact update estimates value assets liabilities Annual Report Form 10-K. estimates change events information. results differ assumptions.


Automotive sales revenue includes cash financing features services performance obligation Accounting Standards 606 FSD Capability features internet connectivity free Supercharging over-the-air software updates. recognize revenue upon delivery control. Payments received control payment terms over loan term. sales return reserve future market values resale value guarantees buyback terms. features internet connectivity free Supercharging-air software updates provisioned control transfer recognized over time. free Supercharging incentives recognized usage expiration. revenue over performance period ownership life. Revenue FSD Capability features recognized functionality delivered maintenance. estimate selling price costs third-party pricing information.


Inventories lower cost. computed standard vehicles energy approximates first-in-out. record write-downs excess obsolete inventories demand. inventory demand excess written-off.


review inventory value exceeds net amount sale. estimated selling price less cost convert inventory finished product. inventory new lower cost basis established changes restoration increase cost.


estimates future costs change write-downs required. small change financial results.


provide manufacturer’s warranty new used vehicles installation energy generation storage systems 10 to 25 years. accrue warranty reserve products includes costs repair recalls. estimates based claims incurred future. estimates uncertain changes cause changes. include costs vehicles solar energy systems costs expensed as incurred. reserve incurred next 12 months included Accrued liabilities remaining balance long-term liabilities. liabilities indemnification suppliers record receivables Prepaid expenses current assets non-current assets. Warranty expense recorded Cost revenues consolidated statements. automotive accrued warranty balance related automotive segment.


fair value stock options restricted stock units stock purchase plan services. fair value awards estimated Black-Scholes option-pricing model. risk-free interest rate term volatility. subjective judgment. fair value RSUs measured grant date closing market value common stock. cost recognized four years stock options RSUs six months ESPP. Stock compensation expense recognized straight-line net forfeitures.


performance-based awards stock-based compensation expense recognized achievement probable.


accumulate stock awards incorporate market data calculate volatilities expected lives impact valuation compensation expense. expense recorded Cost Research development Selling administrative expense statements.


subject to income taxes U. S. foreign jurisdictions. judgment provision taxes deferred tax assets liabilities valuation allowance deferred tax assets. monitor realizability deferred tax assets period. consider history income book-tax differences volatility earnings excess tax benefits stock compensation reversal differences. rely future results uncertainty volatility market price common stock variable macroeconomic conditions income changes business income. valuation allowance assessment based estimate future results.


judgment evaluating tax positions. transactions tax settlement uncertain. recognize effect uncertainty tax attributes estimates. tax return positions supportable sustained review. required file income tax returns U. S. foreign jurisdictions tax laws regulations. returns audit federal state foreign taxing authorities disagree. consideration adequate audit years past experience interpretations tax law. review update estimates changing facts circumstances closing tax audit lapse statute of limitations change estimate. final tax outcome differences impact income tax expense.


Ended December 31,. 2022. 2021 millions Automotive sales,210,125,299 Automotive regulatory credits Automotive leasing Total revenues,419,462,232,957 Services other,319,802,228 Total automotive services segment revenue,738,553,185 Energy generation storage segment revenue,789 Total revenues#96,773,462,823,311,639


Automotive sales revenue financing S X Y Cybertruck FSD Capability maintenance internet Supercharging software updates. lease accounting.


Automotive regulatory sales manufacturers. revenue related to new vehicle production sales pricing. monetize vehicles sold arrangements close production delivery changes regulation.


Automotive leasing revenue amortization lease agreements. sales-type leasing programs revenue delivery.


non services body shop parts Supercharging insurance merchandise.


Automotive sales revenue increased $11. 30 billion 17% 2023 2022 due 473,382 Model 3 Y cash deliveries production. offset lower average selling price reductions negative impact dollar strengthening.


Automotive credits increased $14 million 1% 2022.


Automotive leasing revenue decreased $356 million 14% 2023 2022. direct sales leasing lower deliveries offset lease portfolio.


revenue increased $2. 23 billion 37% 2023 2022. due used vehicle revenue volume body shop non-warranty maintenance Supercharging insurance growing fleet. offset average selling price.


Energy generation storage revenue includes sales leasing financing services incentives.


Energy storage revenue increased $2. billion 54% 2023 2022. Megapack.


Ended December 31,. 2022 Change. 2021 (Dollars millions Cost revenues Automotive sales,121,415,184 Automotive leasing Total cost revenues,281 Services other Total automotive services segment cost revenues Energy generation storage segment Total cost revenues,113,609,217,504 Gross profit automotive,030,354,839 Gross margin total automotive.Gross profit automotive services segment#16,519,565,735 margin automotive. profit energy generation storage segment#1,141#288 margin. 9. Total gross profit,660,853,606 gross margin. 6.


automotive sales revenue includes materials labor manufacturing overhead depreciation shipping logistic vehicle connectivity FSD maintenance electricity infrastructure Supercharger reserves warranty expenses. adjustments warranty write inventory obsolete inventory demand. benefits manufacturing credits.


automotive leasing revenue depreciation goods sold warranty expense.


used vehicles refurbishment non after-sales services body shops part sales Supercharging insurance retail merchandise.


automotive sales revenue increased $15. 52 billion 31%, 2023 2022. increased deliveries. offset average cost per unit due sales mix lower freight material costs manufacturing costs. impacted dollar strengthening foreign currencies IRA manufacturing credits earned.


automotive leasing revenue decreased $241 million 16% 2023 2022. due direct leasing lower deliveries.


services revenue increased $1. 95 billion 33% 2023 2022. changes services revenue.


margin automotive decreased 28. 5% 19. 4% 2023 2022. due lower selling price offset cost unit IRA manufacturing credits.


margin automotive decreased 26. 5% 18. 2% 2023 2022 automotive margin decrease.


energy generation storage revenue includes material labor costs warehouse rent freight warranty overhead costs amortization assets. charges write down inventory obsolete inventory demand. benefits manufacturing credits. agreements solar energy systems depreciation leased maintenance costs amortization initial direct costs.


energy generation storage increased $1. 27 billion 35% 2023 2022 Megapack deployments. offset production ramping cost MWh Megapack IRA manufacturing credits.


margin energy generation storage increased 7. 4% 18. 9% 2023 2022. driven Megapack margin lower cost MWh higher proportion. margin benefit IRA manufacturing credits.


Ended December 31,. 2022 Change. 2021 Change millions Research development#3,969#2,593 percentage revenues


development expenses personnel costs manufacturing prototyping contract services amortized equipment.


R&D expenses increased $894 million 29%, 2023 2022. costs pre-production Cybertruck AI.


R&D expenses revenue 4% 2023 2022. expenses increased revenues product roadmap technologies.


Ended December 31,. 2022 Change. 2021 Change millions Selling general administrative#4,800#3,946 percentage revenues


expenses personnel facilities stores marketing sales finance resources legal fees services litigation settlements.


SG&A expenses increased $854 million 22% 2023 2022. $447 million headcount $363 million facilities expenses.


Ended December 31,. 2022 Change. 2021 Change millions Restructuring#176 meaningful


2022 loss $204 million gains $64 million converting digital assets. expenses $36 million second quarter employee terminations.


Ended December 31,. 2022 Change. 2021 Change millions Interest income#1,066


Interest income increased $769 million 259% 2023 2022. higher interest cash short-term investments rising interest rates increasing portfolio balance.


Ended December 31,. 2022 Change. 2021 millions Other income#172(43)#215 meaningful


income foreign exchange gains losses assets liabilities. gains losses vary exchange rates.


income net changed $215 million December 31, 2023 compared 2022. change due foreign currency exchange rates intercompany balances. Ended December vs. 2022. 2021 millions income taxes Effective tax rate


monitor realizability deferred tax assets period. December 31, 2023 evidence taxable income future earnings U. S. federal state deferred tax assets realizable. released $6. 54 billion valuation allowance. federal state exception California deferred tax assets. $5. 93 billion future remainder benefited December 31, 2023. maintain full valuation allowance California deferred tax assets not likely California tax assets ability.


taxes $6. 13 billion 2023 2022 $6. 54 billion valuation allowance. state deferred tax assets.


tax rate changed 8% 50% 2023 2022 due valuation allowance. federal state deferred tax assets.


Note 14 Taxes statements Annual Report 10-K.


cash five years. cash production research products battery cells manufacturing ramps construction future factories expansion retail service locations body shops Mobile Service fleet Supercharger NACS energy autonomy artificial intelligence products.


large future expenditures fund growth adjust capital operating expenditures by segment. if manufacturing operations decrease may slow capital expenditures. evaluate cash needs raise additional capital or seek alternative financing rapid growth drawdowns on debt facilities financing funds. repay indebtedness early.


believe current liquidity 12-month December 31, 2023 long-term.


sections requirements cash business sources liquidity needs.


enter agreements with vendors for purchase components raw materials products. due to contractual terms variability growth curves pricing binding purchase orders beyond short-term timing magnitude difficult project.


Part II 7 Financial Condition Challenges 2023 Flow Capital Expenditure Trends Annual Report capital expenditures exceed $10. billion 2024 $8. $10. billion following two years. Gigafactory New York agreement spend $5. billion capital operational expenses New York December 31, 2029 deferral April 2021 SUNY Foundation August 2021. Note 15 Commitments Contingencies consolidated financial statements.


December 31, 2023 $4. 68 billion $1. 98 billion 12 months. lease payments $5. 96 billion $1. 31 billion due 12 months. Note 11 12 statements Annual Report 10-K.


sources cash deliveries vehicles sales installations energy storage solar systems debt equity offerings.


December 2023 $16. 40 billion $12. 70 billion cash investments. $4. 43 billion Chinese euros. $5. 03 billion unused credit. Note 11 statements Annual Report 10-K.


adapting strategy liquidity risk objectives investing. securities product roadmap financing.


Ended December 31, millions cash operating activities,256,497 investing activities)(11,973(7,868) financing activities(3,527),203


cash flows affected by investments research development selling capital. inflows include vehicle sales lease financing payments deposits regulatory credits energy interest income. offset by payments suppliers materials expenses lease payments interest financings.


cash $1. 47 billion $13. 26 billion $14. 72 billion. income $2. 93 billion offset assets liabilities $1. 46 billion.


Cash flows capital expenditures $8. 90 billion 2023 $7. 16 billion 2022 factory expansion machinery equipment. purchased $6. 62 billion $5. 81 billion 2023. digital assets $936 million 2022.


$6. 12 billion $2. 59 billion 2023 $3. 53 billion 2022. due $3. 93 billion $2. 01 billion repayments. Note 11 Debt consolidated statements Annual Form 10-K.


Note 2 Accounting Policies Annual Report.


transact business multiple currencies foreign currency risks revenue costs expenses. Chinese euro. net receiver currencies. foreign subsidiaries. changes exchange rates affect results. hedge foreign currency risk.


experienced fluctuations net income gains settlement re-measurement assets liabilities local intercompany cash equivalents balances.


considered trends rates adverse changes 10%. changes applied assets liabilities impact net income before taxes. gain loss $1. 01 billion December 31, 2023 $473 million December 31, 2022 no hedging.


Report Independent Accounting Firm ID 238) Balance Sheets Operations Income Interests Equity Cash Flows


Board Stockholders.


Statements Control Reporting


audited balance sheets Tesla. subsidiaries December 31, 2023 2022 statements operations income interests equity cash flows three years December 2023 financial. audited internal control financial reporting December 2023 Internal Control - Integrated Framework (2013).


consolidated financial statements present financial position December 31, 2023 2022 results operations cash flows three accounting principles. Company maintained internal control financial reporting 2023 Internal Control - Integrated Framework (2013) COSO.


Note 2 Company changed convertible debt 2021.


Company management responsible consolidated financial statements internal control assessment Report Internal Control Reporting Item 9A. opinions consolidated financial statements internal control audits. public accounting firm Oversight Board independent. federal securities laws rules Securities and Exchange Commission PCAOB.


conducted audits PCAOB. standards require plan assurance consolidated financial statements free misstatement error fraud internal control.


audits of consolidated financial statements included risks misstatement error or fraud. examining evidence amounts disclosures. accounting principles estimates management presentation. audit of internal control over financial reporting included understanding risk material weakness testing design effectiveness control risk. other procedures necessary. audits provide reasonable basis for opinions.


internal control over financial reporting assurance reliability financial reporting preparation financial statements for accounting principles. includes policies procedures maintenance of records transactions dispositions assets assurance transactions recorded necessary preparation financial statements receipts expenditures with authorizations management directors prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


critical audit matter from current period audit of consolidated financial statements communicated to audit committee relates to accounts disclosures material challenging complex judgments. communication alter our opinion on consolidated financial statements not separate opinion.


Note 2 financial statements accrued warranty automotive $5,152 million December 31, 2023. manufacturer’s warranty Tesla vehicles. warranty reserve accrued costs repair recalls. estimates based claims future.


principal considerations automotive warranty reserve critical judgment management Tesla models led to auditor judgment subjectivity effort assumptions nature frequency costs future claims professionals specialized skill knowledge.


matter involved evaluating audit evidence forming opinion on consolidated financial statements. procedures included testing controls management’s estimate warranty reserve for Tesla models controls over assumptions nature frequency costs future claims completeness accuracy of claims incurred. procedures included testing management’s process determining warranty reserve developing independent estimate comparing. Testing process assumptions nature frequency future claims costs to repair. analysis claims claims. independent estimate completeness accuracy of historical vehicle claims management estimation future claims. Professionals specialized independent estimate warranty reserve evaluating management’s assumptions nature frequency future claims.


served auditor.


2023 2022 Cash,398,253 investments,696 Accounts receivable,952 Inventory,626 Prepaid expenses assets,388,941,917 vehicles Solar Property equipment,725,548 right-use,180 Digital assets Intangible assets Goodwill Deferred tax assets non-current assets,865 Total,338 Liabilities Accounts payable,431,255 Accrued liabilities Deferred revenue liabilities,709 Deferred revenue long liabilities,330 Total,009,440 Commitments contingencies Redeemable interests subsidiaries Equity.100 shares stock. 6,000 shares 3,185 3,164 issued December 2023 2022 capital,177 loss earnings,885 equity,634 interests subsidiaries liabilities equity,338


notes consolidated statements.


December Automotive sales,210,125 credits leasing,120,476 revenues,419,462,232 Energy generation storage,789 Services,319,802,462,823 Cost sales,121,415 leasing cost revenues,389,108,393 Energy generation storage,621,918 Services cost revenues,113,609,217 Gross profit,660,853,606 Operating Research development Selling administrative Restructuring expenses,197,083 Income operations,891,656 Interest income expense taxes,719,343 taxes Net income,587 Net income noncontrolling subsidiaries income common stockholders,997,556 income share common stock Basic. 73. 87. 62. 63 average shares net income Basic,174,130,959 Diluted,386


Ended December Net income,587 income Foreign currency translation adjustment Unrealized net gain investments Adjustment net loss Comprehensive income,192,172,335 income noncontrolling income common stockholders,215,141,210


Noncontrolling Interests Stock Paid-In Capital Income Deficit Earnings Stockholders’ Equity Interests Subsidiaries Balance December 31, 2020 Adjustments periods conversion senior notes Settlements warrants Issuance common stock equity incentive awards Stock-based compensation Contributions noncontrolling interests Distributions noncontrolling interests Buy-outs noncontrolling interests Net income loss Balance December 31, 2021,803,189#826 Settlements warrants Issuance common stock equity incentive awards Stock-based compensation Distributions noncontrolling interests Buy-outs Net (loss) income,556 loss Balance December 31, 2022#409,164,177,885 Issuance common stock equity incentive awards Stock-based compensation Distributions noncontrolling interests Buy-outs noncontrolling interests Net (loss) income,997income Balance December 31, 2023,185#34,892#27,882,634#733


Ended December 31, Cash Flows Net income,587 Adjustments Depreciation amortization impairment,747 Stock compensation,121 Inventory purchase commitments write-downs Foreign currency transaction loss Deferred income taxes Non-cash interest activities Digital assets loss Changes assets liabilities Accounts receivable Inventory lease vehicles Prepaid expenses assets Accounts payable liabilities Deferred revenue Net cash,256,497 Cash Flows Purchases property equipment,898 solar energy systems digital assets intangible assets investments(19,112)(5,835) maturities,353 sales Receipt government grants Business combinations cash(64) cash investing activities)(11,973)(7,868) Cash Financing issuances debt,883 Repayments,351),364),167) Collateralized lease repayments stock options payments leases Debt issuance costs noncontrolling Distributions buy-outs(54) Net cash financing activities(3,527),203 exchange rate cash equivalents cash(444) cash equivalents(1,220)(1,757),144,901,189 Non-Cash Investing Financing Acquisitions property equipment liabilities,27#2,148,251 Cash interest capitalized#126#152#266 income taxes refunds#1,119#1,203#561


Tesla. incorporated Delaware July 1 2003. design develop manufacture sell lease electric vehicles energy generation storage services. Chief Executive Officer measures performance automotive energy generation storage.


consolidated financial statements GAAP reflect our accounts operations subsidiaries controlling financial interest. ASC 810 Consolidation consolidate variable interest entity primary beneficiary. formed VIEs with financing fund investors funding solar energy systems direct vehicle leasing programs. typical condition controlling financial interest ownership majority voting interests exist. ASC 810 requires holder to consolidate VIE direct activities economic performance absorb losses right receive benefits. consolidate majority not primary beneficiary. primary beneficiary of all VIEs Note 16. evaluate relationships with VIEs. intercompany transactions balances eliminated upon consolidation.


financial statements GAAP requires estimates assumptions assets liabilities revenues costs expenses disclosures. estimates resale value sales return reserves income taxes collectability receivables inventory valuation warranties assets goodwill financial instruments residual lease vehicles solar energy systems. assessed impact update estimates assets liabilities Annual Report Form 10-K. estimates change events information. results differ assumptions.


balances reclassified current consolidated statements notes.


table revenue Ended Automotive sales,210,125 credits Energy storage sales,376,279 Services,319,802 revenues sales services,133,453 Automotive leasing,120,476 Energy storage leasing revenues,462,823


Automotive sales revenue includes cash financing new features services performance obligation ASC 606 FSD Capability features internet connectivity free Supercharging over-the-air software updates. revenue delivery control. Payments received control payment terms except over loan term. sales return reserve future market values resale value guarantees buyback terms. internet connectivity free Supercharging-air software updates provisioned control transfer recognized over time. free Supercharging incentives recognized usage expiration. revenue over performance period ownership life. Revenue FSD Capability features functionality delivered maintenance. estimate selling price costs third-party pricing information.


fees paid to lender financing automotive sales revenue. Costs contract relate to commissions sales personnel vehicles. contract costs fulfilled within year expensed as incurred. shipping handling automotive sales revenue cost freight shipping expense revenue. taxes from transaction price automotive contracts.


offer resale value guarantees banking partners vehicle leasing programs. originate lease transfer vehicle partner sale under ASC 606. receive upfront payment bear casualty credit risks provide guarantee sell above contract residual value lease. estimate guarantee liability ASC 460 record balance sheet. quarterly assess estimated market value resale guarantee payments. market conditions changes. total guarantee liability immaterial December 31, 2023.


Deferred revenue FSD Capability maintenance internet connectivity free Supercharging software updates automotive sales Ended December,913 Additions,178 liability pre-existing contracts Revenue recognized end period,913


Deferred revenue transaction price performance obligations unsatisfied balance sheet. December 31, 2022 $469 million December 2023. $472 million December 31, 2021 FSD Capability release North America fourth quarter 2022. total deferred revenue December 2023 $926 million next 12 months. remaining transfer control.


providing loans automotive deliveries 2022. December 2023 net financing receivables $242 million $128 million $1. 04 billion $665 million non-term.


earn tradable credits automotive ZEVs greenhouse economy clean fuel. sell emission standards requirements.


Payments credits terms. recognize revenue sale negligible costs control purchasing party. Deferred revenue immaterial December 31, 2023 2022. Revenue December 31, 2022 2021 immaterial 2023 2022. 2022 recognized $288 million revenue changes regulation additional consideration credits sold.


outstanding leases direct vehicle U. S. Canada Europe. customers lease Tesla 48 months. vehicles. leases. record leasing revenues depreciation. December 2023 2022 2021 recognized $1. 86 billion $1. 75 billion $1. 25 billion vehicle leasing revenue. December 2023 2022 deferred $458 million $407 million lease upfront payments.


policy exclude taxes automotive contracts.


outstanding direct leases vehicles financed sales-type leases ASC 842 Asia Europe. customers return vehicle lease term. title end after payments. programs right return purchase option title after payments. arrangements 72 months. recognize revenue costs sales-type lease automotive leasing revenue upon delivery. Interest income recorded to automotive leasing revenue. years ended December 31, 2023 2022 2021 recognized $215 million $683 million $369 million sales-type leasing revenue $164 million $427 million $234 million sales-type leasing cost.


non services body shop parts Supercharging insurance merchandise.


Revenues repair maintenance insurance recognized extended plans. sell used vehicles services service plans components merchandise use standalone prices revenue allocation. Payment vehicles services received control transfers terms. prepaid plans refundable cancellation included deposits. record Deferred revenue non prepayment amounts unearned insurance premiums recognized contract term. Deferred revenue excluding insurance premiums immaterial December 31, 2023 2022.


Energy generation storage sales revenue sale solar energy storage systems to residential small commercial utility grade customers. Sales engineering design installation. customers pay full purchase price upfront. Revenue design installation recognized when passes inspection utility authority. Sales energy storage systems installation revenue recognized product delivered installed commissioned. Payment upon invoice payment terms business.


large utility energy storage system sales engineering design installation customers make milestone payments contract phases. Revenue recognized percentage completion costs.


multiple performance obligations contract allocate standalone selling price method. estimated costs plus margin market data. Costs commissions sales personnel energy storage systems. contract costs fulfilled year expensed as incurred.


energy storage system contracts provide performance guarantees system minimum energy performance requirements. If pay damages. variable consideration include variable customer payments based on energy market participation activities. guarantees estimated at contract inception updated end performance data. estimates included in transaction price significant reversal revenue.


deferred revenue non-refundable prepayments recognized contract term. December 31, 2023 2022 deferred revenue $1. 60 billion $863 million due contractual terms. 2022 2021 $571 million $171 million December 2023 2022. disclosure transaction price obligations energy generation storage sales one year invoice performance. December 31, 2023 transaction price $3. 43 billion. recognize $1. 05 billion 12 months rest remaining obligation period.


providing loans energy since 2022. December 2023 net financing receivables $31 million $24 million Accounts $578 $387 million non-current assets long-term.


revenue arrangements lease energy generation storage record revenue payments rebates incentives straight-line lease term criteria. difference payments revenue recorded deferred revenue balance sheet.


solar systems purchase electricity PPAs January 1 2019 agreements operating leases ASC 840. Revenue electricity delivered rates criteria.


deferred revenue prepayments term. December 31, 2023 2022 deferred revenue $181 million $191 million. rebates incentives utility companies agencies lease term. December 31, 2023 2022 revenue rebates immaterial.


capitalize costs agreements solar systems referral fees sales commissions amortize term agreements.


automotive sales revenue includes materials labor manufacturing overhead depreciation shipping logistic vehicle connectivity FSD maintenance electricity infrastructure Supercharger reserves warranty expenses. adjustments warranty write inventory obsolete inventory demand. benefits manufacturing credits.


automotive leasing revenue depreciation goods sold warranty expense.


used vehicles refurbishment non after-sales services body shops part sales Supercharging insurance retail merchandise.


energy generation storage revenue includes material labor overhead freight warranty amortization acquired assets. charges write down value inventory obsolete inventory demand. benefits manufacturing credits. agreements solar energy systems revenue depreciation leased maintenance costs amortization initial direct costs.


Research incurred.


subject income taxes U. S. foreign jurisdictions. computed asset liability method deferred tax assets liabilities determined financial tax bases rates. Valuation allowances deferred tax assets.


monitor realizability deferred tax assets factors reporting period. judgment required provision income taxes tax assets liabilities valuation allowance assets. consider history income book-tax differences volatility earnings excess tax benefits stock-based compensation impacts reversal temporary differences. rely projected future results uncertainty volatility market price common stock macroeconomic conditions income changes business income. valuation allowance assessment based best estimate future results.


record liabilities uncertain tax positions sustained review. Accrued interest penalties unrecognized tax benefits income tax expense.


Tax Cuts Jobs Act. shareholder low-taxed income foreign subsidiaries. GILTI expense deferred taxes. elected deferred method recorded deferred tax assets liabilities balance sheets.


Comprehensive income net. foreign currency adjustments unrealized gains losses investments excluded.


fair value stock options RSUs ESPP services. value awards estimated Black-Scholes option-pricing model. risk-free interest rate term volatility. subjective judgment. fair value RSUs measured grant date closing market value common stock. cost recognized service four years stock options RSUs six months ESPP. Stock compensation expense recognized straight-line net forfeitures.


performance-based awards stock-based compensation expense recognized achievement probable.


accumulate stock awards incorporate market data calculate volatilities expected lives impact valuation compensation expense. expense recorded Cost Research development Selling administrative expense statements.


Noncontrolling redeemable represent third-party interests in assets under funding arrangements solar energy systems vehicles. contractual provisions funds represent profit-sharing arrangements. methodology calculating balance sheet approach hypothetical liquidation book value method. noncontrolling in net assets balance presented as. represent amounts third parties under liquidation provisions net assets liquidated at recorded amounts GAAP tax laws distributed to third. third parties’ interests in results operations determined as difference in noncontrolling redeemable interest balances in sheets capital transactions. redeemable noncontrolling interest balance equal to redemption amount. presented as temporary equity in mezzanine section balance sheet third parties redeem interests for cash.funds significant fluctuations net income noncontrolling liquidation provisions milestones reached.


Income Share Stock


net income per share common stock calculated dividing by weighted-average shares. dilutive shares based stock-based awards warrants convertible senior notes treasury included diluted net income dilutive.


convertible entered hedges warrants 11. hedges not included dilutive shares anti-dilutive. strike price warrants below average share price included tables. weighted-average shares net income common stock.


table stockholders basic diluted net income share Ended December 31, Net income,997,556#5,519 Less Buy-out noncontrolling interest income basic income stock,999,583 Less Dilutive convertible debt diluted net income,999#12,584


table diluted shares net income common stock Ended December shares net income,174#3,130#2,959 Stock awards#298#310#292 Convertible senior notes Warrants#106 income diluted#3,485#3,475#3,386


table dilutive shares excluded diluted net income stock anti-dilutive Ended December 31, Stock-based awards


account business acquisitions ASC 805. total purchase consideration measured fair value assets equity instruments liabilities assumed acquisition date. Costs attributable acquisition expensed. assets liabilities noncontrolling interests measured fair values acquisition. recognize goodwill purchase noncontrolling interests assets liabilities. bargain purchase gain consolidated value liabilities excess. include results acquired financial statements acquisition date.


liquid investments three months purchase cash equivalents. securities funds commercial paper.


maintain cash balances restricted withdrawal use. payments secured debt. includes collateral sales letters credit real estate leases deposits insurance services. record cash balance determine classification duration restriction.


total cash equivalents restricted cash consolidated statements 31, 2023 2022 2021 Cash equivalents,398,253 Restricted cash prepaid expenses current assets non-current assets,189#16,924,144


Investments. government debt commercial paper time deposits certificates deposit available-for-sale estimated value unrealized gains losses income stockholders’ equity. securities maturities three months short investments. Interest dividends amortization purchase premiums discounts.


cost-sale investments identification method. gains losses recorded income.


review investments for declines. includes cause decline credit losses creditworthiness issuers. amortized cost approximates fair value.


Accounts receivable include from financial institutions leasing companies financing energy storage regulatory credits government rebates. provide allowance against uncollectible. write-off uncollectible.


fiscal quarter accounts receivable balance waiting customer payments financing partners two weeks terms. balances regulatory credits contractual payment terms. government rebates year processing timelines. accounts receivable balance. December 31, 2023 2022 $207 million $753 million long-term government rebates receivable non-current assets consolidated balance sheets.


provide financing options automotive energy products. receivables carried amortized cost allowance loan losses. Provisions loan losses charged allowance. historical economic trends forecasts future cash flows.


consumer receivables review credit application contract terms credit bureau. emphasizes creditworthiness affordability credit history. strong loan origination.


origination review credit quality retail financing payment activity analysis. payment principal interest 31 days past contractual due date. December 31, 2023 2022 majority receivables current status immaterial balance past due. majority originated 2023 2022.


customer notes receivable MyPower loan program solar energy system 30-year originated 2018. outstanding balances credit losses balance sheets Prepaid expenses current assets non-current. December 31, 2023 2022 MyPower losses $266 million $280 million $5 million $7 million due 12 months. credit losses $36 million $37 million.


instruments credit risk cash equivalents investments restricted cash accounts. cash investments balances funds. insured limits. December 2023 2022 no 10% receivables.


dependent on suppliers inability deliver components timely at prices quality volumes acceptable manage components business prospects financial condition results.


Inventories lower cost. computed standard vehicles energy approximates first-in-out. record write-downs excess obsolete inventories demand. inventory demand excess written-off.


review inventory value exceeds net amount sale. estimated selling price less cost convert inventory finished product. inventory new lower cost basis established changes restoration increase cost.


estimates future costs change write-downs required. small change financial results.


leasing program cost less depreciation. straight-line-method leasing. gross cost December 31, 2023 2022 $7. 36 billion $6. 08 billion. net depreciation $1. 38 billion $1. 04 billion December.


account digital assets indefinite-lived ASC 350. use third-party custodial services. recorded cost remeasured balance sheet cost net impairment losses acquisition.


determine fair value digital assets nonrecurring ASC 820 based quoted prices active exchange principal market I. perform analysis each quarter decreases prices digital assets impaired. consider lowest market price digital asset since acquiring. current carrying value exceeds fair value quarter impairment loss equal difference carrying values prices determined.


Impairment losses recognized Restructuring consolidated statements. Gains recorded sale presented net impairment losses assets. gain sale difference sales price carrying value assets sold.


Note 3 Digital Assets.


lessor solar systems. stated cost.


Depreciation amortization calculated lives Solar 30 35 years


costs solar lease term 25 years


systems pending interconnection depreciated as service interconnected-service. under construction installation depreciated completed interconnected service. Initial agreement acquisition capitalized amortized over agreements.


Property plant equipment recognized cost depreciation. Depreciation computed Machinery equipment vehicles office furniture 15 Tooling 7 Building 30 Computer software 10


Leasehold improvements lives terms related leases.


retirement sale property equipment cost depreciation removed balance gain loss reflected operations. Maintenance repair expensed major improvements functionality capitalized depreciated life.


Interest debt capitalized construction. interest construction Property plant equipment amortized assets.


review property plant equipment solar long-term prepayments intangible assets. measure recoverability carrying amount future cash flows. not recoverable adjusted fair value. December 2023 2022 2021 no impairments long-lived assets.


Intangible assets amortized seven thirty years.


assess goodwill annually fourth quarter carrying value reporting fair value. 2023 2022 2021 impairment goodwill.


capitalize costs software Property plant equipment consolidated balance sheets. preliminary post-implementation expensed. amortized three five years.


Software development costs leased technological feasibility prior availability capitalized when significant. costs amortized over estimated useful life software available.


evaluate lives test impairment recoverability. December 31, 2023 2022 2021 no impairments capitalized software.


determine functional currency international subsidiaries divisions primary currency. not. dollar cumulative translation adjustment rates income loss balance. apply monthly exchange rate income-end currency rate balance sheet.


Foreign currency gains losses exchange rate changes. recognized statements. 2023 2022 2021 net foreign currency gain $122 million loss $89 million gain $97 million.


provide manufacturer’s warranty new used vehicles installation energy generation storage systems 10 to 25 years. accrue warranty reserve products includes costs repair recalls. estimates based claims incurred future. estimates uncertain changes cause changes. include costs vehicles solar energy systems costs expensed as incurred. reserve incurred next 12 months included Accrued liabilities remaining balance long-term liabilities. liabilities indemnification suppliers record receivables Prepaid expenses current assets non-current assets. Warranty expense recorded Cost revenues consolidated statements. automotive accrued warranty balance related automotive segment.warranty activity Ended December 31, period,101 costs(1,225)(803) changes liability warranties expirations foreign exchange impact Provision warranty,333 period,152,101


deposits refundable cash payments product additional payments delivery installation. prepayments maintenance plans. included Accrued liabilities consolidated balance sheets until refunded forfeited applied purchase balance.


business impacted by government programs incentives arrangements. incentives recorded financial statements reduction expense offset capital asset. benefit recorded conditions assurance receipt.


August 16, 2022 IRA enacted effective taxable years December 31, 2022. clean energy electric vehicles battery energy storage corporate tax 15% income profits $1 billion. measures affect consolidated financial statements. December 31, 2023 material costs. evaluate effects guidance.


lease Research Foundation SUNY Foundation Gigafactory New York. buildouts. comply covenants hiring investment targets. SUNY Foundation construction costs acquisition equipment responsible construction costs Note 15 Commitments Contingencies. incentive reduces lease costs Energy generation storage cost operating expense statements.


agreement with Shanghai land use rights Gigafactory Shanghai. meet capital expenditure annual tax revenue target 2023. incentives capital investments Note 15 Commitments Contingencies. December 31, 2022 received grant funding $76 million. incentives offset costs capital investment Property equipment. reduces depreciation expense equipment.


Gigafactory Nevada agreements Nevada Storey County abatements taxes discounts tax credits $195 million capital hiring targets.


construction Gigafactory Texas 20-year agreement Travis County grant funding 70-80% property taxes 10-year agreement Del Valle Independent School District taxable value property capped amount economic development metrics. expenses automotive revenues operating. December 31, 2023 grant funding property taxes immaterial.