Tesla, Inc. began operations in 2003 but did not begin selling its stock to the public until

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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, 2016, it had total lifetime losses of approximately $3 billion. In addition to making automobiles, Tesla makes energy storage systems. Tesla’s statements of cash flows for 2014, 2015, and 2016 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 2016, Tesla paid off $1.9 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?

TESLA, INC. Consolidated Statements of Cash Flows (in thousands) For the Years Ending December 31 2015 2016 2014 Cash flCash flows from Investing activities: Purchases of property and equipment excluding capital leases, net of sales (1,634,

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Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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