Stock Analysis on Net

Tesla Inc. (NASDAQ:TSLA)

Analysis of Debt 

Microsoft Excel

Total Debt (Carrying Amount)

Tesla Inc., balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Current portion of debt and finance leases 1,502 1,589 2,132 1,785 2,568
Debt and finance leases, net of current portion 1,597 5,245 9,556 11,634 9,404
Total debt and finance leases (carrying amount) 3,099 6,834 11,688 13,419 11,971

Based on: 10-K (reporting date: 2022-12-31), 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).

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 2020 to 2021 and from 2021 to 2022.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2022
Selected Financial Data (US$ in millions)
Convertible Senior Notes 223
Other debt 2,008
Finance lease liabilities 1,054
Total debt and finance leases (fair value) 3,285
Financial Ratio
Debt, fair value to carrying amount ratio 1.06

Based on: 10-K (reporting date: 2022-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt and finance leases: 5.20%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
8.68% 37 3
5.75% 7
4.64% 1,597 74
4.80% 17 1
5.81% 387 22
5.70% 1,054 60
Total 3,099 161
5.20%

Based on: 10-K (reporting date: 2022-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 161 ÷ 3,099 = 5.20%


Interest Costs Incurred

Tesla Inc., interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Interest expense 191 371 748 685 663
Capitalized interest 53 48 31 55
Interest costs incurred 191 424 796 716 718

Based on: 10-K (reporting date: 2022-12-31), 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).

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 decreased from 2020 to 2021 and from 2021 to 2022.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Tesla Inc. capitalized interest increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Tesla Inc. interest costs incurred decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 12,556 5,519 721 (862) (976)
Add: Net income attributable to noncontrolling interest 31 125 141 87 (86)
Add: Income tax expense 1,132 699 292 110 58
Add: Interest expense 191 371 748 685 663
Earnings before interest and tax (EBIT) 13,910 6,714 1,902 20 (342)
 
Interest costs incurred 191 424 796 716 718
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 72.83 18.10 2.54 0.03 -0.52
Adjusted interest coverage ratio (with capitalized interest)2 72.83 15.83 2.39 0.03 -0.48

Based on: 10-K (reporting date: 2022-12-31), 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).

2022 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 13,910 ÷ 191 = 72.83

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 13,910 ÷ 191 = 72.83


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 2020 to 2021 and from 2021 to 2022.