Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Tesla Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	3,855)	7,153)	14,974)	12,587)	5,644)
Depreciation, amortization and impairment	6,148)	5,368)	4,667)	3,747)	2,911)
Stock-based compensation	2,825)	1,999)	1,812)	1,560)	2,121)
Inventory and purchase commitments write-downs	362)	335)	463)	177)	140)
Foreign currency transaction net unrealized (gain) loss	452)	(73)	(144)	81)	(55)
Deferred income taxes	123)	477)	(6,349)	(196)	(149)
Non-cash interest and other operating activities	272)	172)	81)	340)	245)
Digital assets (gain) loss, net	68)	(589)	—)	140)	(27)
Accounts receivable	(261)	(1,083)	(586)	(1,124)	(130)
Inventory	(630)	937)	(1,195)	(6,465)	(1,709)
Operating lease vehicles	(25)	(590)	(1,952)	(1,570)	(2,114)
Prepaid expenses and other assets	(3,181)	(3,273)	(2,652)	(3,713)	(1,540)
Accounts payable, accrued and other liabilities	4,376)	3,588)	2,605)	8,029)	5,367)
Deferred revenue	363)	502)	1,532)	1,131)	793)
Changes in operating assets and liabilities	642)	81)	(2,248)	(3,712)	667)
Adjustments to reconcile net income to net cash provided by operating activities	10,892)	7,770)	(1,718)	2,137)	5,853)
Net cash provided by operating activities	14,747)	14,923)	13,256)	14,724)	11,497)
Purchases of property and equipment excluding finance leases, net of sales	(8,527)	(11,342)	(8,899)	(7,163)	(6,514)
Purchases of digital assets	—)	—)	—)	—)	(1,500)
Proceeds from sales of digital assets	—)	—)	—)	936)	272)
Purchase of intangible assets	—)	—)	—)	(9)	—)
Purchases of investments	(37,109)	(35,955)	(19,112)	(5,835)	(132)
Proceeds from maturities of investments	30,158)	28,310)	12,353)	22)	—)
Proceeds from sales of investments	—)	200)	138)	—)	—)
Receipt of government grants	—)	—)	—)	76)	6)
Business combinations, net of cash acquired	—)	—)	(64)	—)	—)
Net cash used in investing activities	(15,478)	(18,787)	(15,584)	(11,973)	(7,868)
Proceeds from issuances of debt	5,586)	5,744)	3,931)	—)	8,883)
Repayments of debt	(5,546)	(2,500)	(1,351)	(3,364)	(14,167)
Collateralized lease repayments	—)	—)	—)	—)	(9)
Proceeds from exercises of stock options and other stock issuances, net of issuance costs	1,186)	1,241)	700)	541)	707)
Principal payments on finance leases	(104)	(381)	(464)	(502)	(439)
Proceeds received from directors in shareholder settlement	277)	—)	—)	—)	—)
Payment of legal fees associated with shareholder settlement	(176)	—)	—)	—)	—)
Debt issuance costs	(6)	(14)	(29)	—)	(9)
Proceeds from investments by noncontrolling interests in subsidiaries	—)	—)	—)	—)	2)
Distributions paid to noncontrolling interests in subsidiaries	(78)	(104)	(144)	(157)	(161)
Payments for buy-outs of noncontrolling interests in subsidiaries	—)	(133)	(54)	(45)	(10)
Net cash provided by (used in) financing activities	1,139)	3,853)	2,589)	(3,527)	(5,203)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	171)	(141)	4)	(444)	(183)
Net increase (decrease) in cash and cash equivalents and restricted cash	579)	(152)	265)	(1,220)	(1,757)
Cash and cash equivalents and restricted cash, beginning of period	17,037)	17,189)	16,924)	18,144)	19,901)
Cash and cash equivalents and restricted cash, end of period	17,616)	17,037)	17,189)	16,924)	18,144)

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).

The company demonstrates fluctuating cash flows over the five-year period. While net cash provided by operating activities remains relatively stable, significant shifts are observed in investing and financing activities, impacting overall cash position.

Operating Activities: Net cash provided by operating activities initially increased from US$11,497 million in 2021 to US$14,724 million in 2022, then experienced a slight decrease to US$13,256 million in 2023. A substantial increase occurred in 2024, reaching US$14,923 million, followed by a minor decline to US$14,747 million in 2025. This stability is supported by consistently positive net income, though net income itself shows a decreasing trend from 2023 onwards. Adjustments to reconcile net income to net cash provided by operating activities are volatile, particularly in 2024 and 2025, indicating significant non-cash adjustments impacting the final operating cash flow figure. Changes in operating assets and liabilities also contribute to this volatility.
Investing Activities: Net cash used in investing activities consistently represents a substantial outflow throughout the period, increasing from US$7,868 million in 2021 to US$18,787 million in 2024. While decreasing to US$15,478 million in 2025, it remains a significant drain on cash. This is primarily driven by substantial purchases of property and equipment, and notably, significant investments in 2023, 2024, and 2025. Proceeds from maturities of investments provide a partial offset, increasing significantly from 2023 onwards, but are insufficient to counteract the large outflows. Digital asset activity also contributes to the investing cash flow, with purchases in 2021 and 2022, and sales generating proceeds in 2022.
Financing Activities: Net cash flow from financing activities is highly variable. 2021 and 2022 show net cash used in financing, largely due to debt repayments. A shift to net cash provided by financing occurs in 2023, 2024, and 2025, driven by proceeds from debt issuances and stock issuances. However, repayments of debt remain substantial. Distributions to and buy-outs of noncontrolling interests also contribute to cash outflows. The financing activities demonstrate a reliance on external funding, particularly debt, to support operations and investments.
Cash Position: The net increase (decrease) in cash and cash equivalents fluctuates. A decrease is observed in 2021 and 2022, followed by an increase in 2023 and 2025. 2024 shows a slight decrease. Despite these fluctuations, the ending cash balance remains relatively stable, ranging from US$16,924 million to US$18,144 million over the period, indicating effective cash management despite significant cash outflows from investing activities.
Key Observations: The company’s cash flow profile is characterized by strong operating cash generation, offset by substantial investments in property, equipment, and other investments. Financing activities are utilized to bridge the gap between operating and investing cash flows. The decreasing trend in net income from 2023 onwards, coupled with continued high investment levels, warrants monitoring. The significant adjustments to net income in operating activities suggest a need for further investigation into the nature of these non-cash items.

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Tesla Inc. (NASDAQ:TSLA)

Cash Flow Statement