Stock Analysis on Net

Tesla Inc. (NASDAQ:TSLA)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Tesla Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 48
State 57 62 9 4 5
Foreign 1,243 1,266 839 248 86
Current 1,348 1,328 848 252 91
Federal (5,246) 26 (4)
State (653) 1
Foreign (450) (223) (149) 40 23
Deferred (6,349) (196) (149) 40 19
Provision for (benefit from) income taxes (5,001) 1,132 699 292 110

Based on: 10-K (reporting date: 2023-12-31), 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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Tesla Inc. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Tesla Inc. deferred decreased from 2021 to 2022 and from 2022 to 2023.
Provision for (benefit from) income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Tesla Inc. provision for (benefit from) income taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Effective Income Tax Rate (EITR)

Tesla Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory federal tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective tax rate -50.15% 8.25% 11.02% 25.30% -16.54%

Based on: 10-K (reporting date: 2023-12-31), 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).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Tesla Inc. effective tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Tesla Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net operating loss carry-forwards 2,826 4,486 7,607 2,172 1,846
Research and development credits 1,358 1,184 923 624 486
Other tax credits and attributes 827 217 335 168 126
Deferred revenue 1,035 751 546 450 301
Inventory and warranty reserves 1,258 819 377 315 243
Stock-based compensation 230 185 115 98 102
Operating lease right-of-use liabilities 930 554 430 335 290
Capitalized research and development costs 1,344 693
Deferred GILTI tax assets 760 466 556 581
Accruals and others 206 178 191 205 16
Deferred tax assets 10,774 9,533 11,080 4,948 3,410
Valuation allowance (892) (7,349) (9,074) (2,930) (1,956)
Deferred tax assets, net of valuation allowance 9,882 2,184 2,006 2,018 1,454
Depreciation and amortization (2,122) (1,178) (1,279) (1,488) (1,185)
Investment in certain financing funds (133) (238) (209) (198) (17)
Operating lease right-of-use assets (859) (506) (391) (305) (263)
Deferred revenue (49) (50)
Other (116) (15) (13) (61) (24)
Deferred tax liabilities (3,230) (1,937) (1,941) (2,102) (1,489)
Deferred tax assets (liabilities), net of valuation allowance 6,652 247 65 (84) (35)

Based on: 10-K (reporting date: 2023-12-31), 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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Tesla Inc. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Deferred tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Tesla Inc. deferred tax assets, net of valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets (liabilities), net of valuation allowance Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Tesla Inc. deferred tax assets (liabilities), net of valuation allowance increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Tesla Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 6,733 328 89 67 31
Deferred tax liabilities 81 82 24 151 66

Based on: 10-K (reporting date: 2023-12-31), 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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Tesla Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Tesla Inc. deferred tax liabilities increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Tesla Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 106,618 82,338 62,131 52,148 34,309
Less: Noncurrent deferred tax assets, net 6,733 328 89 67 31
Total assets (adjusted) 99,885 82,010 62,042 52,081 34,278
Adjustment to Total Liabilities
Total liabilities (as reported) 43,009 36,440 30,548 28,418 26,199
Less: Noncurrent deferred tax liabilities, net 81 82 24 151 66
Total liabilities (adjusted) 42,928 36,358 30,524 28,267 26,133
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 62,634 44,704 30,189 22,225 6,618
Less: Net deferred tax assets (liabilities) 6,652 247 65 (84) (35)
Stockholders’ equity (adjusted) 55,982 44,457 30,124 22,309 6,653
Adjustment to Net Income (loss) Attributable To Common Stockholders
Net income (loss) attributable to common stockholders (as reported) 14,997 12,556 5,519 721 (862)
Add: Deferred income tax expense (benefit) (6,349) (196) (149) 40 19
Net income (loss) attributable to common stockholders (adjusted) 8,648 12,360 5,370 761 (843)

Based on: 10-K (reporting date: 2023-12-31), 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).


Tesla Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Tesla Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 15.50% 15.41% 10.25% 2.29% -3.51%
Adjusted net profit margin 8.94% 15.17% 9.98% 2.41% -3.43%
Total Asset Turnover
Reported total asset turnover 0.91 0.99 0.87 0.60 0.72
Adjusted total asset turnover 0.97 0.99 0.87 0.61 0.72
Financial Leverage
Reported financial leverage 1.70 1.84 2.06 2.35 5.18
Adjusted financial leverage 1.78 1.84 2.06 2.33 5.15
Return on Equity (ROE)
Reported ROE 23.94% 28.09% 18.28% 3.24% -13.03%
Adjusted ROE 15.45% 27.80% 17.83% 3.41% -12.67%
Return on Assets (ROA)
Reported ROA 14.07% 15.25% 8.88% 1.38% -2.51%
Adjusted ROA 8.66% 15.07% 8.66% 1.46% -2.46%

Based on: 10-K (reporting date: 2023-12-31), 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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Tesla Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Tesla Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Tesla Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Tesla Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Tesla Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Tesla Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 14,997 12,556 5,519 721 (862)
Revenues 96,773 81,462 53,823 31,536 24,578
Profitability Ratio
Net profit margin1 15.50% 15.41% 10.25% 2.29% -3.51%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common stockholders 8,648 12,360 5,370 761 (843)
Revenues 96,773 81,462 53,823 31,536 24,578
Profitability Ratio
Adjusted net profit margin2 8.94% 15.17% 9.98% 2.41% -3.43%

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to common stockholders ÷ Revenues
= 100 × 14,997 ÷ 96,773 = 15.50%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to common stockholders ÷ Revenues
= 100 × 8,648 ÷ 96,773 = 8.94%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Tesla Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues 96,773 81,462 53,823 31,536 24,578
Total assets 106,618 82,338 62,131 52,148 34,309
Activity Ratio
Total asset turnover1 0.91 0.99 0.87 0.60 0.72
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 96,773 81,462 53,823 31,536 24,578
Adjusted total assets 99,885 82,010 62,042 52,081 34,278
Activity Ratio
Adjusted total asset turnover2 0.97 0.99 0.87 0.61 0.72

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 96,773 ÷ 106,618 = 0.91

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 96,773 ÷ 99,885 = 0.97

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Tesla Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 106,618 82,338 62,131 52,148 34,309
Stockholders’ equity 62,634 44,704 30,189 22,225 6,618
Solvency Ratio
Financial leverage1 1.70 1.84 2.06 2.35 5.18
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 99,885 82,010 62,042 52,081 34,278
Adjusted stockholders’ equity 55,982 44,457 30,124 22,309 6,653
Solvency Ratio
Adjusted financial leverage2 1.78 1.84 2.06 2.33 5.15

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 106,618 ÷ 62,634 = 1.70

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 99,885 ÷ 55,982 = 1.78

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Tesla Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 14,997 12,556 5,519 721 (862)
Stockholders’ equity 62,634 44,704 30,189 22,225 6,618
Profitability Ratio
ROE1 23.94% 28.09% 18.28% 3.24% -13.03%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common stockholders 8,648 12,360 5,370 761 (843)
Adjusted stockholders’ equity 55,982 44,457 30,124 22,309 6,653
Profitability Ratio
Adjusted ROE2 15.45% 27.80% 17.83% 3.41% -12.67%

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 ROE = 100 × Net income (loss) attributable to common stockholders ÷ Stockholders’ equity
= 100 × 14,997 ÷ 62,634 = 23.94%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to common stockholders ÷ Adjusted stockholders’ equity
= 100 × 8,648 ÷ 55,982 = 15.45%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Tesla Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 14,997 12,556 5,519 721 (862)
Total assets 106,618 82,338 62,131 52,148 34,309
Profitability Ratio
ROA1 14.07% 15.25% 8.88% 1.38% -2.51%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common stockholders 8,648 12,360 5,370 761 (843)
Adjusted total assets 99,885 82,010 62,042 52,081 34,278
Profitability Ratio
Adjusted ROA2 8.66% 15.07% 8.66% 1.46% -2.46%

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to common stockholders ÷ Total assets
= 100 × 14,997 ÷ 106,618 = 14.07%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to common stockholders ÷ Adjusted total assets
= 100 × 8,648 ÷ 99,885 = 8.66%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Tesla Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.