Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Tesla Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	13,371)	12,474)	14,431)	15,255)	10,025)
Accrued purchases	2,577)	2,253)	2,721)	2,747)	2,045)
Accrued warranty reserve, current portion	2,475)	1,917)	1,546)	1,025)	703)
Payroll and related costs	1,907)	1,532)	1,325)	1,026)	906)
Taxes payable	1,594)	1,367)	1,204)	1,235)	1,122)
Customer deposits	1,311)	993)	876)	1,063)	925)
Operating lease liabilities, current portion	954)	807)	672)	485)	368)
Sales return reserve, current portion	529)	305)	219)	270)	265)
Other current liabilities	1,932)	1,549)	517)	354)	310)
Accrued liabilities and other	13,279)	10,723)	9,080)	8,205)	6,644)
Deferred revenue, current portion	3,424)	3,168)	2,864)	1,747)	1,447)
Current portion of debt and finance leases	1,640)	2,456)	2,373)	1,502)	1,589)
Current liabilities	31,714)	28,821)	28,748)	26,709)	19,705)
Debt and finance leases, net of current portion	6,736)	5,757)	2,857)	1,597)	5,245)
Deferred revenue, net of current portion	3,631)	3,317)	3,251)	2,804)	2,052)
Accrued warranty reserve, net of current portion	6,132)	4,799)	3,606)	2,480)	1,398)
Operating lease liabilities, net of current portion	5,389)	4,603)	3,671)	2,164)	1,671)
Other non-current liabilities	1,339)	1,093)	876)	686)	477)
Other long-term liabilities	12,860)	10,495)	8,153)	5,330)	3,546)
Long-term liabilities	23,227)	19,569)	14,261)	9,731)	10,843)
Total liabilities	54,941)	48,390)	43,009)	36,440)	30,548)
Redeemable noncontrolling interests in subsidiaries	58)	63)	242)	409)	568)
Preferred stock; $0.001 par value; no shares issued and outstanding	—)	—)	—)	—)	—)
Common stock; $0.001 par value	3)	3)	3)	3)	1)
Additional paid-in capital	42,770)	38,371)	34,892)	32,177)	29,803)
Accumulated other comprehensive income (loss)	361)	(670)	(143)	(361)	54)
Retained earnings	39,003)	35,209)	27,882)	12,885)	331)
Stockholders’ equity	82,137)	72,913)	62,634)	44,704)	30,189)
Noncontrolling interests in subsidiaries	670)	704)	733)	785)	826)
Total equity	82,807)	73,617)	63,367)	45,489)	31,015)
Total liabilities and equity	137,806)	122,070)	106,618)	82,338)	62,131)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Total liabilities exhibited a consistent upward trend over the five-year period, increasing from US$30,548 million in 2021 to US$54,941 million in 2025. This growth was mirrored by a substantial increase in total equity, rising from US$31,015 million in 2021 to US$82,807 million in 2025, resulting in a corresponding increase in total liabilities and equity.

Current Liabilities: Current liabilities demonstrated significant growth between 2021 and 2025, increasing from US$19,705 million to US$31,714 million. While there was a peak in 2022 at US$26,709 million, the figures remained relatively stable between 2023 and 2024 before increasing again in 2025. Components contributing to this increase included accounts payable, accrued liabilities and other, and deferred revenue, current portion. Notably, ‘Other current liabilities’ experienced a substantial increase from US$310 million in 2021 to US$1,932 million in 2025.
Long-Term Liabilities: Long-term liabilities also increased over the period, though with some fluctuation. Starting at US$10,843 million in 2021, they decreased to US$9,731 million in 2022 before steadily rising to US$23,227 million in 2025. The most significant component within this category is ‘Other long-term liabilities’, which nearly quadrupled from US$3,546 million in 2021 to US$12,860 million in 2025. Debt and finance leases, net of current portion, also contributed to the increase, nearly tripling from US$5,245 million to US$6,736 million.
Stockholders’ Equity: Stockholders’ equity experienced substantial growth throughout the period. Retained earnings were the primary driver of this increase, rising from US$331 million in 2021 to US$39,003 million in 2025. Additional paid-in capital also increased significantly, from US$29,803 million in 2021 to US$42,770 million in 2025. Accumulated other comprehensive income (loss) fluctuated, showing a loss in 2022 and 2024, but ending with a gain in 2025.
Specific Liability Accounts: Several specific liability accounts demonstrated notable trends. Accrued warranty reserve, both current and net of current portion, increased consistently throughout the period, suggesting a potential increase in warranty obligations. Operating lease liabilities, similarly, showed consistent growth in both current and non-current portions. Customer deposits exhibited moderate growth, while sales return reserve, current portion, showed a more volatile pattern, with a significant increase in 2025.

The overall trend indicates a significant expansion in both liabilities and equity, suggesting substantial growth in the company’s operations and financing activities. The increasing reliance on long-term debt and other long-term liabilities warrants further investigation into the company’s capital structure and financial risk profile.

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Tesla Inc. (NASDAQ:TSLA)

Balance Sheet: Liabilities and Stockholders’ Equity