How can we interpret Tesla's performance? Using the Exhibits 2a and 2b (pp.10-11), calculate two Earnings Performance Ratios (ROA and ROE) in 2012 and 2014.

Exhibit 2a Tesla Income Statement (in millions, except per share data) Exhibit 2b Balance Sheet (in millions, except per share data) Year Ended December 31 2014 2013 2012 Year Ended December 31 Revenue 2013 2012 Automotive sales $ 3193 $ 1998 $ 386 2014 Development services 15 27 Assets Total revenues 3198 2013 413 Current assets Cost of revenues Cash and cash equivalents $ 1,906 846 $ 202 Automotive sales 2310 1544 372 Receivables 227 49 27 Development services 13 11 Inventory 954 340 269 Total cost of revenues 2317 1557 383 Prepaid expenses 95 28 8 Gross profit 882 456 30 8 Other current assets 18 19 Operating expenses Total current assets 3,190 1,266 525 Research and development 465 232 274 Gross property, plant and equipment 2,889 1,261 320 Sales, general and administrative 604 286 150 Accumulated Depreciation (293) (140) (58) Total operating expenses 1068 518 424 Net property, plant and equipment 2,596 1121 562 Operating income 187 (61) (394) Other long-term assets 55 30 27 Interest expense 101 33 0 Total non-current assets 2,651 ,151 589 Other Income 3 23 (2) Total assets $ 5,849 $ 2,417 $ 1,114 Income before taxes 285 (71) 396) Liabilities and stockholders' equity Provision for income taxes 9 3 0 Current liabilities Net income $ (294) $ (74) $ (396) Short-term debt $ 602 $ 51 Earnings per share Capital leases 10 8 9 304 Basic 2.36 (0.62) (3.69) Accounts payable 778 303 CA CA Diluted (2.36) (0.62) (3.69) Taxes payable 71 38 10 eighted average shares outstanding Accrued liabilities 198 70 30 Basic 125 119 107 Deferred revenues 449 255 Diluted 125 119 107 Other current liabilities 139 Total current liabilities 2, 107 675 539 Long-term debt 1,865 586 401 Capital leases 12 13 10 Source: Compiled by casewriters. Deferred taxes liabilities Accrued liabilities 33 Deferred revenues 292 181 3 Other long-term liabilities 661 254 36 10 Total non-current liabilities 2,830 1,075 450 Total liabilities 4,938 1,750 989 Stockholders' equity Additional paid-in capital 2,345 1,807 1,190 Retained earnings 1,434 (1,140) (1,066) Total stockholders' equity 912 667 125 Total liabilities and stockholders' equity $ 5,849 $ 2,417 1,114 Source: Compiled by casewriters