Tesla, Inc. began operations in 2003 but did not begin selling its stock to the public until June 28, 2010. It has lost money every year it has been in existence, and by December 31, 2019, it had total lifetime losses of approximately $6.1 billion. In addition to making automobiles, Tesla makes solar energy and energy storage systems. Tesla’s statements of cash flows for 2017, 2018, and 2019 follow.

a. As this chapter explained, many companies that report net losses on their earnings statements report positive cash flows from operating activities. How do Tesla’s net incomes compare to its cash flows from operating activities?
b. Based only on the information in the statements of cash flows, does Tesla appear to be growing the capacity of its business? Explain.
c. In 2019, Tesla paid off $9.2 billion of “convertible and other debt.” Where did it get the funds to repay this debt?
d. All things considered, based on the information in its statements of cash flows, does Tesla’s cash position appear to be improving or deteriorating?

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Cash flows from operating activities: Net loss TESLA, INC. Consolidated Statements of Cash Flows (in millions) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, amortization, and impairment Stock-based compensation Amortization of debt discounts and issuance costs Inventory and purchase commitments write-downs Loss on disposal of fixed assets Foreign currency transaction (gain) loss Loss related to SolarCity acquisition Non-cash interest and other operating activities Operating cash flow related to repayment of discounted convertible notes Changes in operating assets and liabilities, net of effect of business combinations Accounts receivable Inventories Operating lease vehicles Prepaid expenses and other current assets Other non-current assets Accounts payable and accrued liabilities Deferred revenue Customer deposits Resale value guarantee Other long-term liabilities Net cash flows from operating activities Cash flows from investing activities: Purchases of property and equipment excluding capital leases, net of sales Purchase of solar energy systems Purchase of intangible assets Receipts of government grants Business combinations, net tof cash acquired Net cash flows from investing activities Cash flows from financing activities: Proceeds from issuance of common stock in public offering, net of underwriting discounts Proceeds from issuance of convertible and other debt Repayments of convertible and other debt Repayments of borrowings issued to related parties Collateralized lease borrowing Proceeds from exercise of stock options and other stock issuances Principal payments on finance leases Common stock and debt issuance costs Purchase of convertible note hedges Proceeds from settlement of convertible note hedges Proceeds from issuance of warrants Payments for settlements of warrants Proceeds from investment by noncontrolling interests in subsidiaries Distributions paid to noncontrolling interests in subsidiaries Payments for buy-outs of noncontrolling interest in subsidiaries Net cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents, and restricted cash Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period For the Years Ending December 31 2017 2019 2018 $ (775) *⠀⠀⠀±¤'*® €ŒŒ§¤*=*8³* [8`+91 80'®® 66 € ' - ' ª € ª¨§§§| $(1,063) 3****°'*' [@£*££*8[³] [['''[[[[*¤¶¶ $(2,241) *9*8*** ¤§¤¤****** ' '¶¶ ***@@[="888 '|-|*|ª2|3|