Tesla Inc., balance sheet: debt

US$ in millions

	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)

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.

	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

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

Interest rate	Debt amount¹	Interest rate × Debt amount
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%

¹ US$ in millions

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

Tesla Inc., interest costs incurred

US$ in millions

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)

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.

	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

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.

Tesla Inc. (NASDAQ:TSLA)

Analysis of Debt