Stock Analysis on Net

Tesla Inc. (NASDAQ:TSLA)

Analysis of Debt 

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Total Debt (Carrying Amount)

Tesla Inc., balance sheet: debt

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Current portion of debt and finance leases 1,589  2,132  1,785  2,568  797 
Current portion of solar bonds and promissory notes issued to related parties —  —  —  —  100 
Debt and finance leases, net of current portion 5,245  9,556  11,634  9,404  9,418 
Total debt and finance leases (carrying amount) 6,834  11,688  13,419  11,971  10,315 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Total debt and finance leases (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Tesla Inc. total debt decreased from 2019 to 2020 and from 2020 to 2021.

Total Debt (Fair Value)

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Dec 31, 2021
Selected Financial Data (US$ in millions)
Convertible Senior Notes 2,016 
5.30% Senior Notes due in 2025 — 
Solar Asset and Loan-backed Notes 834 
Other debt 4,396 
Finance lease liabilities 1,492 
Total debt and finance leases (fair value) 8,738 
Financial Ratio
Debt, fair value to carrying amount ratio 1.28

Based on: 10-K (reporting date: 2021-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 5.50%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
6.00% 29 
8.68% 91 
3.30% 1,250  41 
5.80% — 
5.50% 2,723  150 
7.70% 844  65 
5.80% 422  24 
5.10% 14 
5.80% 1,492  87 
Total 6,872  378 
5.50%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 378 ÷ 6,872 = 5.50%


Interest Costs Incurred

Tesla Inc., interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Interest expense 371  748  685  663  471 
Capitalized interest 53  48  31  55  125 
Interest costs incurred 424  796  716  718  596 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Tesla Inc. interest expense increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Tesla Inc. capitalized interest increased from 2019 to 2020 and from 2020 to 2021.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Tesla Inc. interest costs incurred increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjusted Interest Coverage Ratio

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 5,519  721  (862) (976) (1,961)
Add: Net income attributable to noncontrolling interest 125  141  87  (86) (279)
Add: Income tax expense 699  292  110  58  32 
Add: Interest expense 371  748  685  663  471 
Earnings before interest and tax (EBIT) 6,714  1,902  20  (342) (1,738)
 
Interest costs incurred 424  796  716  718  596 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 18.10 2.54 0.03 -0.52 -3.69
Adjusted interest coverage ratio (with capitalized interest)2 15.83 2.39 0.03 -0.48 -2.91

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 6,714 ÷ 371 = 18.10

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 6,714 ÷ 424 = 15.83


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Tesla Inc. adjusted interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.