Overview
Accountants must know how to set up multiple years’ worth offinancial statements for review. They must also know how to do differenttypes of analysis work like vertical, horizontal, and ratio analyses.
Directions
There are two parts for this milestone: the relevant tabs of theProject Workbook Template and the Financial Analysis section in theBusiness Valuation Template. January
Financial St
2018
2019
Assets
Current Assets
Cash and Cash Equivalents
Accounts Receivable Net
Inventory
Other Current Assets
Total Current Assets
$
$
$
$
$
3.88
0.95
3.11
0.37
8.31
$
$
$
$
$
6,268.00
1,324.00
3,552.00
959.00
12,103.00
Property, Plant, and Equipment Net
Intangibles
Other Assets
Total Non-Current/Fixed Assets
$
$
$
$
19.69
0.35
1.39
21.43
$
$
$
$
20,199.00
537.00
1,470.00
22,206.00
Total Assets
$
29.74 $
34,309.00
$
$
$
$
3.40
4.02
2.57
9.99
$
$
$
$
3,771.00
5,111.00
1,785.00
10,667.00
Long-Term Debt and Lease Obligations
Other Long-Term Liabilities
Total Long-Term Liabilities
$
$
$
10.72 $
2.71 $
13.43 $
12,841.00
2,691.00
15,532.00
Total Liabilities
$
23.43 $
26,199.00
Common Stock, Less Treasury
Additional Paid in Capital
Retained Earnings
Other Equity
Total Equity
$
$
$
$
$
0.17 $
10.25 $
(5.33) $
1.22 $
6.32 $
1.00
12,736.00
(6,119.00)
1,492.00
8,110.00
Total Liabilities & Equity
$
29.74 $
34,309.00
Non-Current Assets
Liabilities and Owners’ Equity
Current Liabilities
Accounts Payable
Accrued Expenses and Other Current Liabilities
Current Portion of Debt and Leases
Total Current Liabilities
Long-Term Liabilities
Owners’ Equity
Check Digit: This should be 0 or the balance sheet is out of
balance. Check your work.
$
(0.00) $
–
Tesla
Balance Sheet
January 1 2018 through December 31, 2022
Millions
Financial Statements
2020
2021
Vertical Analysis
2022
2018
$
$
$
$
$
19,384.00
1,886.00
4,101.00
1,346.00
26,717.00
$
$
$
$
$
17,707.00
1,913.00
5,757.00
1,723.00
27,100.00
$
$
$
$
$
22,185.00
2,952.00
12,839.00
2,941.00
40,917.00
13.04%
3.19%
10.47%
1.23%
27.93%
$
$
$
$
23,375.00
520.00
1,536.00
25,431.00
$
$
$
$
32,436.00
457.00
2,138.00
35,031.00
$
$
$
$
36,819.00
409.00
4,193.00
41,421.00
66.21%
1.18%
4.68%
72.07%
$
52,148.00 $
62,131.00 $
82,338.00
100.00%
$
$
$
$
6,051.00
6,065.00
2,132.00
14,248.00
10,025.00
8,091.00
1,589.00
19,705.00
$
$
$
$
15,255.00
9,952.00
1,502.00
26,709.00
11.45%
13.52%
8.64%
33.60%
$
$
$
10,840.00 $
3,330.00 $
14,170.00 $
7,297.00 $
3,546.00 $
10,843.00 $
4,401.00
5,330.00
9,731.00
36.06%
9.11%
45.17%
$
28,418.00 $
30,548.00 $
36,440.00
78.77%
$
$
$
$
$
1.00 $
27,260.00 $
(5,036.00) $
1,505.00 $
23,730.00 $
3.00
29,803.00
329.00
1,448.00
31,583.00
$
$
$
$
$
3.00
32,177.00
12,885.00
833.00
45,898.00
0.58%
34.46%
-17.91%
4.10%
21.24%
$
52,148.00 $
62,131.00 $
82,338.00
100.01%
$
$
$
$
$
–
$
–
$
–
Vertical Analysis, Common Size Statements
2019
2020
2021
2022
18.27%
3.86%
10.35%
2.80%
35.28%
37.17%
3.62%
7.86%
2.58%
51.23%
28.50%
3.08%
9.27%
2.77%
43.62%
26.94%
3.59%
15.59%
3.57%
49.69%
58.87%
1.57%
4.28%
64.72%
44.82%
1.00%
2.95%
48.77%
52.21%
0.74%
3.44%
56.38%
44.72%
0.50%
5.09%
50.31%
100.00%
100.00%
100.00%
100.00%
10.99%
14.90%
5.20%
31.09%
11.60%
11.63%
4.09%
27.32%
16.14%
13.02%
2.56%
31.72%
18.53%
12.09%
1.82%
32.44%
37.43%
7.84%
45.27%
20.79%
6.39%
27.17%
11.74%
5.71%
17.45%
5.35%
6.47%
11.82%
76.36%
54.49%
49.17%
44.26%
0.00%
37.12%
-17.83%
4.35%
23.64%
0.00%
52.27%
-9.66%
2.89%
45.51%
0.00%
47.97%
0.53%
2.33%
50.83%
0.00%
39.08%
15.65%
1.01%
55.74%
100.00%
100.00%
100.00%
100.00%
Incom
January 1 2018 thro
M
Financial Statement
Total Revenue (or Sales)
Cost of Sales
$
$
2018
21,461.00 $
17,419.00 $
Gross Profit
$
4,042.00 $
4,069.00
Sales, General, and Administrative Expenses
$
4,430.00 $
4,138.00
Operating Income
$
(388.00) $
(69.00)
Other Income (Expense) *If expense is reported, enter as a negative number.
Interest Income / (Expense)
$
(639.00) $
Other Income (Expense)
$
22.00 $
(641.00)
45.00
Net Income (Loss), Before Tax
(665.00)
Vertical Analysis on Revenue only
$
(1,005.00) $
2019
24,578.00
20,509.00
14.52%
Tesla
Income Statement
January 1 2018 through December 31, 2022
Millions
Financial Statements
Vertical Analysis, Common Size
$
$
2020
31,536.00 $
24,906.00 $
2021
53,823.00 $
40,217.00 $
2022
81,462.00
60,609.00
2018
100.00%
81.17%
2019
100.00%
83.44%
$
6,630.00 $
13,606.00 $
20,853.00
18.83%
16.56%
$
4,636.00 $
7,083.00 $
7,197.00
20.64%
16.84%
$
1,994.00 $
6,523.00 $
13,656.00
-1.81%
-0.28%
$
$
(718.00) $
(122.00) $
(315.00) $
135.00 $
106.00
(43.00)
-2.98%
0.10%
-2.61%
0.18%
$
1,154.00 $
6,343.00 $
13,719.00
-4.68%
-2.71%
28.31%
70.67%
51.35%
ical Analysis, Common Size Statements
2020
100.00%
78.98%
2021
100.00%
74.72%
2022
100.00%
74.40%
21.02%
25.28%
25.60%
14.70%
13.16%
8.83%
6.32%
12.12%
16.76%
-2.28%
-0.39%
-0.59%
0.25%
0.13%
-0.05%
3.66%
11.78%
16.84%
Tesla
Ratio Analysis
January 1 2018 through December 31, 2022
2018
2019
2020
Liquidity Ratios
Current Ratio
Quick Ratio
Working Capital
$
0.83
1.13
1.88
0.48
0.71
1.49
(1.69) $ 1,436.00 #########
Activity Ratios
Receivable Turns
Days in Receivables
Revenues/Working Capital
Revenues/Fixed Assets
Revenues/Total Assets
Inventory Turns
Days in Inventory
Payables Turns
Days in Payables
22614.33
0.02
-12728.94
1089.89
721.64
5595.57
0.07
5117.22
0.07
18.56
19.66
17.12
1.22
0.72
5.77
63.22
5.44
67.11
16.72
21.83
2.53
1.35
0.60
6.07
60.10
4.12
88.68
3.12
2.49
0.99
-15911.97%
-3379.40%
-4.68%
-8.20%
-1.94%
-2.71%
4.86%
2.21%
3.66%
Coverage/Leverage Ratios
Fixed Assets/Equity
Profitability Ratios
Return on Equity
Return on Total Assets
Net Profit on Revenues
022
$
2021
2022
1.38
1.00
7,395.00 $
1.53
0.94
14,208.00
28.14
12.97
7.28
1.66
0.87
6.99
52.25
4.01
90.98
27.60
13.23
5.73
2.21
0.99
4.72
77.32
3.97
91.87
1.03
0.80
20.08%
10.21%
11.78%
29.89%
16.66%
16.84%
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have to complete this tab because all entries on the Milestone Corrected Balance Sheet tab are correct.
If you need to correct answers from Milestone Two, place an “X” next to Corrected Milestone Two. Then enter in your corr
answers on this tab. Please highlight your corrected answers in green or note with an asterisk.
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*If you received a perfect score on the Milestone Two, please place an “X” next to Miestone Two Perfect Score. Then you
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Milestone Two Perfect Score:
Correct Milestone Two:
[Insert company name]
Income Statement
[Insert period covered]
[Insert how data is recorded. (i.e. thousands or millions)]
Financial Statements
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Liquidity Ratios
Current Ratio
Quick Ratio
Working Capital
Activity Ratios
Receivable Turns
Days in Receivables
Revenues/Working Capital
Revenues/Fixed Assets
Revenues/Total Assets
Inventory Turns
Days in Inventory
Payables Turns
Days in Payables
Coverage/Leverage Ratios
Fixed Assets/Equity
Profitability Ratios
Return on Equity
Return on Total Assets
Net Profit on Revenues
*If you received a perfect score on the Milestone Two, please place an “X” next to Miestone Two Perfect
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Correct Milestone Two:
#VALUE![insert most current year]
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Project Income Statements
[Insert dates of period covered]
Iinsert how data is recorded. (i.e. thousands or mil
Financ
Total Revenue (or Sales)
Estimated Annual Revenue Growth Rate
Gross Profit
2023
#VALUE!
[insert value]
2024
#VALUE!
[insert value]
#VALUE!
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Estimated Annual Gross Profit Margin
[insert value]
[insert value]
Sales, General, and Administrative Expenses (SG&A)
Estimated Annual SG&A (% of Sales)
#VALUE!
[insert value]
#VALUE!
[insert value]
Other Income (Expense) *If expense is reported, enter as a negative number.
Interest Income / (Expense)
Other Income (Expense)
Net Income (Loss)
[insert value]
[insert value]
#VALUE!
[insert value]
[insert value]
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t company name]
Income Statements
tes of period covered]
orded. (i.e. thousands or millions)]
Financial Statements
2025
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2026
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2026
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[insert value]
Terminal
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[insert value]
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#VALUE!
#VALUE!
#VALUE!
#VALUE!
[Insert company name]
Development of Discount Rate and Capitalization Rate Table
Risk-free long term U.S. Government bond rate
Equity risk premium
Industry premium estimate
Cost of equity (Discount Rate)
Less: Long-term sustainable growth rate
Capitalization Rate
NOTES
(A) Yield on the twenty-year U.S. Treasury bond as of December 31, 20XX, per the U.S. Treasury
(B) Long-horizon expected return of large stocks over risk free securities, U.S. Equity Risk Premium (6.0%)
(C) SIC code XX, 1.5%
(D) Appraiser’s judgement concerning company-specific risk
(E) Estimated long-term growth rate based on inflation, Federal Reserve Bank of Philadelphia
me]
italization Rate Table
2022
Rate
Note
2.60%
6.00%
1.50%
3.00%
13.10%
-2.50%
10.60%
A
B
C
D
Sum of A – D above
E
[Insert company name]
Discounted Cash Flow Method
[Insert dates of period covered]
Projected for Ye
2023
#VALUE!
Forecasted Net Income
Plus
Depreciation
*Less
Cash Used for Investments
Cash Used for Financing
Net Cash Flow
Present Value of Cash Flows
2024
#VALUE!
[insert value]
[insert value]
[insert value]
[insert value]
#VALUE!
[insert value]
[insert value]
#VALUE!
#VALUE!
#VALUE!
13.10%
Net Present Value of Future Cash Flows
Net Present Value of Terminal Cash Flow
#VALUE!
#VALUE!
10.60%
Total Indication of Value
#VALUE!
1.00
* NOTE: Cash USED must be entered as negative
numbers.
2.00
company name]
d Cash Flow Method
es of period covered]
Projected for Years Ending December 31,
2025
#VALUE!
2026
#VALUE!
2026
#VALUE!
Terminal
#VALUE!
[insert value]
[insert value]
[insert value]
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Final Computation of Value
As of [Enter date]
Indicated Value of Equity
Weight
Weighted Value
Indicated Value with Voting Rights
*Less: DLOC (Discount for Lack of Control)
15%
Marketable, Minority Value
**Less: DLOM (Discount for Lack of Marketability)
25%
Nonmarketable, Minority Value
Value of a 1% Interest
*Let this default to the rate applied here for the DLOC. It is
possible to override this rate with your own. However, an
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Income Approach:
Discounted Cash Flow Method
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Tesla; Valuation and Analysis
Collette Bistodeau
Southern New Hampshire University
ACC 345: Financial Statement Analysis/Business Valuation
Elliott Chester
September 3, 2023
Milestone One: Introduction …………………………………………………………………………………………….. 3
Links ………………………………………………………………………………………………………………………….. 3
History and Overview ………………………………………………………………………………………………….. 3
Summary ……………………………………………………………………………………………………………………. 8
Milestone One References ………………………………………………………………………………………….. 10
Milestone Two: Financial Analysis …………………………………………………………………………………. 11
Balance Sheet Analysis ……………………………………………………..Error! Bookmark not defined.
Income Statement and Cash Flow Analysis ………………………….Error! Bookmark not defined.
Normalization Adjustments Analysis ………………………………….Error! Bookmark not defined.
Summary …………………………………………………………………………Error! Bookmark not defined.
Milestone Two References …………………………………………………Error! Bookmark not defined.
Milestone Three: Economic Outlook ………………………………………Error! Bookmark not defined.
Microeconomic Industry Analysis ………………………………………Error! Bookmark not defined.
General Macroeconomic Analysis ………………………………………Error! Bookmark not defined.
Summary …………………………………………………………………………Error! Bookmark not defined.
Milestone Three References ……………………………………………….Error! Bookmark not defined.
Project ………………………………………………………………………………..Error! Bookmark not defined.
Assumptions and Rationale ………………………………………………..Error! Bookmark not defined.
Analysis …………………………………………………………………………..Error! Bookmark not defined.
Project References …………………………………………………………….Error! Bookmark not defined.
Valuation Team Report ……………………………………………………..Error! Bookmark not defined.
Milestone One: Introduction
Links
1. Provide the most recent SEC Form 10-K Filing link for the company.
https://www.sec.gov/Archives/edgar/data/1318605/000095017023001409/0000950170-23-001409index.htm
2. Provide the most recent SEC Proxy Filing link for the company.
https://www.sec.gov/Archives/edgar/data/1318605/000119312523094075/0001193125-23-094075index.htm
History and Overview
1. Provide a brief company history overview based on external research of the company.
Consider the following questions to guide your response:
A. How long has the company been in business?
B. Who was the original founder of the company?
C. What significant changes to company leadership have occurred?
D. How has the company changed since its beginning? Consider expansion of
locations or products/services, etc.
Tesla Inc., commonly referred to as Tesla, is an automotive and energy company.
Tesla has been in business for 20 years. It was founded and incorporated on July 1, 2003,
in San Carlos, California, by Silicon Valley engineers. Two of the engineers were Martin
Eberhard and Marc Tarpenning. It was named after the famous physicist Nikola Tesla.
Later, Elon Musk, JB Straubel and Ian Wright joined the company and became cofounders. Tesla officially revealed a prototype of its first car, Roaster, in 2006, and its
production began in 2008. In 2010, Tesla went public as an IPO. Tesla launched several
models, including the Model S sedan released in 2012, the Model X in 2015, the Model 3
in 2017, the Model Y in 2020, and the Tesla Semi truck in 2022.
Tesla has experienced significant leadership changes since its inception. Most
changes involved internal promotions to fill vacant positions following several departures
throughout the year. Notably, Eberhard was the CEO until August 2007 and left shortly
after. Tarpenning served as the CFO and Vice President of Engineering of Tesla. De’ve
Drori took over as the President and CEO of Tesla. In February 2004, Elon Musk joined
the company as the board chairman by investing $6.5 million (Thompson et al., 2023).
He became CEO in 2008. Musk played a crucial role in Tesla’s early successes and
eventually became the face of the company. He secured venture capital, which enabled
Tesla to fund the development of the Roadster in 2006 and introduced Tesla’s vision to
the world. In 2006, he published “The Secret Tesla Motors Master Plan”, a blog post
laying down Tesla’s long-term mission to help transition toward clean energy. Musk has
led all product designs. He has served as CEO since 2008 up to date.
Tesla has undergone significant product and financial evolution. It started with Tesla
Roadster, an all-electric sports car. Tesla has continually expanded its product line to
include Model S, Model X, Model 3 and Model Y to cater for different market segments.
The company announced its plans to invest $3.6 billion to expand its Tesla Semi Trucks
and Cybertruck production. Besides products, Tesla has expanded its production plants
and operations, opening new plants in Reno, Nevada, and two new battery cell plants. It
has also expanded to other locations like Germany and China. In addition, Tesla has
introduced autonomous driving technology, including Full-Self Driving (FSD) and
Autopilot, though it is still under development. Tesla’s financial performance has also
improved, with the company achieving profitability after years of losses.
2. Identify all of the company’s major locations for their facilities and/or other properties.
Tesla currently has six largest locations for its manufacturing plants. Fremont,
California, USA, is Tesla’s primary manufacturing facility for electric vehicles. Tesla
rolled off the first Model S assembly line at this factory location. Currently, Tesla’s
Fremont factory manufactures more than a million vehicles yearly. Gigafactory Nevada,
located in Reno, is another highest volume plant for electric car batteries and powertrains.
The facility’s capacity is 5.4 million square feet, and Tesla has $6.2 billion in building it
(Tesla, 2023). Tesla’s Gigafactory in Shanghai focuses on electric vehicles for the
Chinese markets, including Model 3 and Model Y. It plays a critical role in Tesla’s global
manufacturing strategy. Gigafactory Texas, located in Austin, Texas, produces Model Y
and is intended to manufacture Cybertruck for the North American Market. Gigafactory
Berlin—Brandenburg makes electric vehicles, particularly Model Y and batteries, for the
European market (Tesla, 2023). In addition, Tesla has a global network of stores and
service networks. It also has supercharger stations in various locations strategically
positioned along highways and urban areas.
3. Identify all of the customers recognized by the company.
Find this information in the annual Form 10-K filing, in Part 1, Item 1: Business.
Tesla directly sells its products to customers. Most Tesla customers are
individual consumers who purchase Tesla vehicles for personal use. Tesla currently
manufactures different consumer vehicles, including the Model 3, Y, S and X. These
vehicles are known for their appealing design, comfort, practicality, sustainability and
fuel efficiency. Another category of consumers is fleet and corporate customers. In 2022,
Tesla began producing and delivering Tesla Semi, its first commercial electric vehicle.
Businesses can purchase these vehicles for their operations, including taxi services, car
rental services and companies looking to incorporate electric vehicles. Environmental
enthusiasts are also major consumers of Tesla vehicles since Tesla is committed to clean
energy and sustainability. Tech enthusiasts are also drawn to Tesla vehicles because of
the company’s commitment to electric vehicle technology. Technology features like
Autopilot and FSD capabilities attract tech-savvy customers. Tesla’s diverse customer
base includes global customers from various regions, including North America, Europe,
Australia and Asia.
4. List all of the names of the executive management team of the company.
Find this information in the annual Form 10-K filing in Part 3, Item 10:
Directors, Executive Officers and Corporate Governance or in the Annual Proxy filing,
under “Executive Officers” or “Officers Compensation.” You may copy and paste a chart
into this section from the annual Form 10-K filing. Be sure to add your own explanation
of the information in the chart along with an attribution and a citation in the References
section at the bottom of this template.
Tesla’s organizational structure is functional design, emphasizing departmentalization
and coordination of functional activities. Tesla comprises numerous divisions, such as production,
energy and engineering. Tesla’s structure also has hierarchy aspects with reporting from
managers through assistants. At the top of the hierarchy is the executive team, which leads the
company, followed by senior management. Elon Musk is the CEO of Tesla, Inc. as of January
2023. Below the executive team are various senior management positions overseeing different
areas of the company, such as finance, production, engineering and sales. Zachary J. Kirkhorn is
the Chief Financial Officer (CFO), and Vaibhav Taneja is the Chief Accounting Officer.
5. Identify all of the competition recognized by the company.
Find this information in the annual Form 10-K filing, in Part 1, Item 1: Business.
Tesla faces competition from various automakers and technology companies in
the electric vehicle (EV) and sustainable transport. These include established automotive
companies like Ford, General Motors, Mercedes Benz, Audi and BMW. Traditional
companies transitioning to EVs, such as Volkswagen and Volvo, compete with Tesla. EV
startups like NIO, Lucid Motors and Rivian threaten Tesla’s business. Other competitors
include technology companies like Apple and Google and Energy companies.
6. Identify all of the major shareholders of the company.
Find this information in the Annual Proxy filing under “Beneficial Ownership.”
Tesla’s major stakeholders comprise individuals, organizations and entities with
interest or influence on the company’s operations and performance. Stockholders, both
individuals and institutions, have a financial interest in the company to support the
company’s operations. Individuals such as Elon Musk won 5% of the company stock.
Institutions like The Vanguard Group and Blackrock, Inc. have also invested 5% of the
company shares. Other key company stakeholders are directors and top management.
Tesla’s customers are vital as they purchase its products and services, contributing to its
success. Employees, including designers, engineers, manufacturing workers and
corporate staff, are also essential stakeholders. Tesla collaborates with suppliers and
partners to obtain raw materials, components, and services to ensure sustainable
production and product quality. Other stakeholders include creditors and lenders,
regulatory agencies, environmental and sustainability advocates, media and analysts,
researchers, local communities and the general public.
7. Describe business risks recognized by the company.
Find this information in the annual Form 10-K filing, in Part 1, Item 1A: Risk Factors.
Item 1A in the annual Form 10-K will be lengthy. Do your best to summarize the risks
the company has identified.
Supply chain disruption is a primary business risk facing Tesla. Tesla relies on
the global supply chain for materials and components, including semiconductor chips and
batteries, for production. Disruptions like the Covid 19 could lead to shortages or delays,
impacting production and delivery schedules. Another risk is competition. The electric
vehicle sector is becoming increasingly competitive as established and startups introduce
electric vehicles. The energy storage market is also competitive as established and
emerging companies are introducing products similar to Tesla’s. Tesla also faces
intellectual property risks. As a technology-driven company, Tesla should protect
propriety and customer data to avoid data breaches. Other risks include regulatory and
compliance risks, production and quality control, and environmental and market volatility
risks.
8. Explain how the company is committed to Environmental, Social and Governance (ESG)
efforts and sustainability.
Find this information in the annual Form 10-K filing, in Part 1, Item 1: Business or in
Part 2, Item 7: Management’s Discussion and Analysis of Financial Condition and
Results of Operations. If your company does not provide this information in its SEC
filings, you must do external research to determine your company’s commitment to ESG
efforts and sustainability. Be sure to add your own explanation of the information you
researched. Include appropriate attributions in your explanation and a citation in the
References section at the bottom of this template.
Tesla has committed to environmental, social and governance (ESG) efforts and
sustainability. Its primary mission since its establishment is to accelerate the world’s
transition to clean energy. As such, Tesla focuses on producing electric vehicles to reduce
carbon emissions and combat the climate change crisis. Tesla also designed its cars and
energy products to maximize energy usage to support this mission. In addition, the
company manufactures solar panels, energy storage solutions like Powerpack and
Powerwall, and solar roofs to achieve zero carbon emissions. Tesla integrates its facilities
with renewable energy and operates solar-powered supercharger stations to enhance the
sustainability of their operations.
Tesla emphasizes social commitments such as workplace safety, innovation,
education diversity and inclusion and community engagement. It has implemented
education initiatives in partnership with universities and institutions to increase
awareness of electric vehicles and sustainability. It also engages local communities by
offering them job opportunities in the Gigafactories. The company gives its workforce
career growth and development opportunities to ensure their success in their roles. Tesla
START is an intensive training that provides individuals with the necessary skills and
abilities for their respective roles.
Regarding governance, Tesla has a board of directors comprising 7 members,
which oversee the company’s practices. It also has a code of ethics that outlines expected
employee behavior to prevent misconduct. Besides, Tesla regularly publishes reports on
its financial performance to promote transparency. The company also engages its
stakeholders, especially shareholders, on its governance matters and makes appropriate
governance-related changes to ensure proper governance.
9. Describe the company’s Leadership in Energy and Environmental Design (LEED) status.
Consider the following questions to guide your response:
A. Is the company currently LEED-certified?
B. If the company is not currently LEED certificated, is it working towards
becoming LEED certified?
Review the Form 10-K filing to see if your company is LEED certified or if it discusses
its certifications. If your company does not provide this information in its SEC Filings,
you will need to do external research to determine your company’s LEED status. Be sure
to add your own explanation of the information you researched. Include appropriate
attributions in your explanation and a citation in the References section at the bottom of
this template.
Tesla is LEED-certified. It has achieved LEED certification for its manufacturing
facilities. The company received an environmental leadership award 2010 from Global
Green USA for innovative, sustainable product designs (Tesla, 2023b). Tesla BCN
installed 1st single line house in Barcelona, Spain, in 2019, receiving LEED Gold
Certification (Tesla BCN, 2023). Global Green USA recognizes Tesla each year for its
commitment to advancements to build a more sustainable and secure future.
Summary
1. Summarize your findings for the valuation team. Include the following details in your
response:
A. Explain what you learned as you researched the company.
B. Identify the key points the valuation team needs to be aware of.
Tesla is a competitive electric vehicles and clean energy founded in 2003 by Martin
Eberhard, Marc Tarpenning and others. Elon Musk joined Tesla as a co-founder in 2004
and continues to be the largest shareholder and CEO of the company. Tesla leads in the
EV market due to its commitment to innovative technology, autonomous driving
capabilities and battery advancements. Its leadership has experienced significant
leadership changes since its inception. The company has also grown in financial
performance, production, sales and market capitalization. Tesla has expanded its product
line to include solar panels, solar roofs and energy storage solutions. Major
manufacturing facilities are in the US, particularly Fermont and Nevada. They are also
located in Shanghai, China, and Berlin-Brandenburg, Germany. Tesla has faced
significant market risks and uncertainties that have impacted its operations.
Macroeconomic conditions and disruptions resulting from COVID-19 have affected the
company’s ability to grow business. Notably, it has experienced delays in ramping up
products and services and launching new plants.
One of the key points to the valuation team regards competition and environmental
regulations. From the research, Tesla faces stiff competition from established and
emerging technologies in various sectors, including electric vehicles, technology and
energy production. The valuation team should assess the company’s competitive
landscape in these industries to identify risks that could impact Tesla’s success and
expansion. Another concern is the supply chain and manufacturing risks. The team
should evaluate Tesla’s complex global chain and manufacturing operations to ensure
sustainability. Besides, assessing ESG and sustainability impact is crucial given Tesla’s
mission to transform the world into a sustainable future. Another critical area is future
innovation. Future innovations can potentially reduce risks related to competition. Tesla
is known for its commitment to technological advancements. It should capitalize on this
area to enhance its competitive edge and growth.
2. Create at least one effective visualization that supports key points. Include the following
detail in your response:
A. Appropriate labels for the visualization(s).
Create an effective visualization(s) based on your research to support your summary
report. Examples of ideas for your visualization(s) include creating a timeline of the
company history, creating a map of the company’s locations, creating a chart of major
shareholders showing ownership broken down by percentages, etc.
Year
2003
2004
2006
2007
2008
2010
2012
2015
2017
2020
2022
Timeline of Tesla’s History
Major Changes and Events
Martin Eberhard and Marc Terpenning
founded Tesla Motors.
Elon Musk, through capital investment,
became Tesla’s co-founder.
Musk published a blog post, “The Secret
Tesla Motors Master Plan
Tesla reveals the prototype of Tesla
Roadster and its first project to develop
electric sports cars
Eberhard steps down as CEO and leaves
the company shortly.
Tesla Roadster was delivered to Musk,
and its production begins
Musk becomes CEO
Tesla goes public as an IPO
Tesla introduces Model S sedan
Tesla launches Model X SUV
Tesla introduces Model 3 sedan
Model Y crossover was introduced
Tesla Semi Truck debuts
Executive Management Team
Elon Musk
Chief Executive Officer and Director (Principal Executive Officer
Elon Musk
/s/ Zachary J. Kirkhorn
Chief Financial Officer (Principal Financial Officer)
Zachary J. Kirkhorn
/s/ Vaibhav Taneja
Chief Accounting Officer (Principal Accounting Officer)
Vaibhav Taneja
/s/ Robyn Denholm
Director
Robyn Denholm
/s/ Ira Ehrenpreis
Ira Ehrenpreis
Director
/s/ Joseph Gebbia
Director
Joseph Gebbia
/s/ Hiromichi Mizuno
Director
Hiromichi Mizuno
/s/ James Murdoch
Director
James Murdoch
/s/ Kimbal Musk
Director
Kimbal Musk
/s/ Kathleen Wilson-Thompson
Director
Kathleen Wilson-Thompson
Beneficial Ownership
Beneficial Owner Name
5% Stockholders
Elon Musk(1)
The Vanguard Group(2)
Blackrock, Inc.(3)
Named Executive Officers & Directors
Elon Musk(1)
Zachary J. Kirkhorn(4)
Andrew Baglino(5)
Robyn Denholm(6)
Ira Ehrenpreis(7)
Joe Gebbia
Hiromichi Mizuno(8)
James Murdoch(9)
Kimbal Musk(10)
JB Straubel
Kathleen Wilson-Thompson(11)
All current executive officers and directors as a group (11 persons)(12)
Milestone One References
Tesla BCN. (2023). CERTIFICATION LEED. https://teslabcn.com/en/2019/01/28/certificationled/#:~:text=%E2%80%9CTesla%20BCN%20carries%20out%20the,strategies%20to%20certify
%20sustainable%20buildings
Tesla. (2023). Continuing Our Investment in Nevada. https://www.tesla.com/blog/continuingour-investmentnevada#:~:text=Since%202014%2C%20we%20have%20invested,world’s%20transition
%20to%20sustainable%20energy.
Shares
Beneficially
Owned
715,022,706
217,857,401
178,428,109
715,022,706
2,688,930
1,040,304
1,677,480
1,681,005
111
351,690
1,427,295
2,050,470
12,660
771,255
728,328,172
Tesla. (2023a). Tesla’s Long-Term Strength. https://www.tesla.com/manufacturing
Tesla. (2023b). Tesla Motors Receives ‘Environmental Leadership Award from Global Green USA.
https://www.tesla.com/blog/tesla-motors-receives-environmental-leadership-award-global-greenusa
Thompson, C., Lee, K. &Levin, T. (2023). Tesla’s history’s most important moments, from its
founders’ launch to bringing EVs mainstream. Business Insider.
https://www.businessinsider.com/tesla-history-founders?r=US&IR=T
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