Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

DATE : 14TH MAR 2024 CMP : $ 169.5 TARGET PRICE : - $ 209.1

TICKER : NASDAQ:TSLA HEADQUATER : Austin, Texas, U.S Recommendation : BUY

Stock Performance (Indexing) – 3 Year HIGHLIGHTS :

• We issue a BUY recommendation on Tesla Inc. based on a
$ 200.0
one-year target price of $209.10, offering a 23% upside
potential from its closing price of $169.50 on March 14,
$ 150.0
2024. Our recommendation is primarily driven by:
$ 100.0
• Macroeconomic Outlook - In the current economic
$ 50.0 landscape, we observe a global trend of increasing
unemployment rates. The anticipated U.S. GDP growth
- rate for the year is revised to 3.2%. Despite these
challenges, there is an optimistic forecast for consumer
spending, with an expected increase of 6.2% this year
TSLA NASDAQ
and a steady year-over-year growth rate of 3.2%
projected until 2025.
MARKET PROFILE
• Brand Diversity - Tesla Inc. maintains a robust brand
Closing Price $ 169.48 portfolio with a global reach, engaging a diverse audience
52- Week H/L $ 299.29 / $ 155.37 of users, developers, and advertisers. Tesla's multi-
Avg. Volume 106,274,993 platform strategy, spanning various products and
Market Cap $ 3,58,360.4 services, enables the company to connect with a broad
Dividend Yield N/A user base and foster user loyalty. Tesla's key growth
Beta (5Y) 2.41 drivers include technological advancements, continuous
EV / Revenue 6.7x product innovation, global expansion efforts, and the
EV / EBITDA 7.0 x exploration of new channels. This strategic approach
EPS Ratio : positions Tesla to not only expand its reach but also adapt
Basic $ 4.73 to evolving market trends, sustaining its presence in the
Diluted $ 4.30 dynamic landscape of digital platforms.
Inst. Holdings 52.58%
Insider Holding 13.00% • Valuation - Valuation methods indicate a current intrinsic
value of $209.10 per share for Tesla Inc. This valuation is
VALUATION underpinned by the company's strategic acquisitions and
PGM Multiple its effective management of a substantial volume of user
$ 179 $ 240 transactions at a cost-efficient level. Additionally, Tesla
Est. Price
demonstrates a strong ability to attract repeat customers
Weight 50% 50%
to their platforms. While the long-term intrinsic value is
Target Price $ 209.1 significant, the current market conditions and
uncertainties suggest a more cautious stance. Therefore,
ANALYST
our revised recommendation is a short-term BUY,
Name – Kunal Raju Garud reflecting the potential for market fluctuations and the
Email – [email protected] need for investors to closely monitor Tesla Inc.'s
Cont No - +91-7040393977 performance in the short term.
 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

Revenues RECENT NEWS :

$
1,76,560.8
• In the fourth quarter, Tesla produced approximately
495,000 vehicles and delivered over 484,000 vehicles. In
$
1,30,714.6
2023, vehicle deliveries grew 38% YoY to 1.81 million while
production grew 35% YoY to 1.85 million. Thank you to all
$ 96,773.0 of our customers, employees, suppliers, shareholders and
$ 81,462.0 supporters who helped us achieve a great 2023.
$ 53,823.0
Production Deliveries Percentage
Model 3/Y 476,777 461,538 2%
Other Models 18,212 22,969 3%
FY 1 A FY 2 A FY 3 A FY 4 A FY 5 A Total 494,989 484,507 2%

Net Income Margin • Tesla Inc. demonstrated resilience with $53,823 million
revenue in 2021, followed by a surge to $96,773 million in
$ 45,000.0 25.00% 2023, reflecting a robust 18.80% YoY growth.
$ 40,000.0
$ 35,000.0 20.00%
$ 30,000.0 • This growth is underpinned by increasing demand for
15.00%
$ 25,000.0 Tesla's electric vehicles and energy solutions, supported by
$ 20,000.0
$ 15,000.0
10.00% innovations in autonomous driving and battery technology.
$ 10,000.0 5.00%
$ 5,000.0 • With expansion plans and a sustainability focus, Tesla is
- 0.00%
poised for sustained revenue growth, offering investors
FY FY FY FY FY
2021 2022 2023 2024 2025 promising opportunities in the automotive and clean
A A A F F energy sectors.
Source : Company fillings, IIF Education

Key Ratios FY 2021 A FY 2022 A FY 2023 A FY 2024 F FY 2025 F FY 2026 F FY 2027 F

Total Revenue $ 53,823.0 $ 81,462.0 $ 96,773.0 $ 1,30,714.6 $ 1,76,560.8$ 2,38,486.8 $ 3,22,132.3
EPS :
Basic $ 1.9 $ 4.0 $ 4.7 $ 4.1 $ 5.6 $ 7.6 $ 10.2
Diluted $ 1.6 $ 3.6 $ 4.3 $ 3.8 $ 5.1 $ 6.9 $ 9.3
EBITDA Margin 20.79% 21.36% 12.20% 18.31% 17.94% 17.72% 17.58%
EBIT Margin 12.12% 16.76% 9.19% 12.69% 12.69% 12.69% 12.69%
Net Income Margin 10.25% 15.41% 15.50% 10.05% 10.01% 10.06% 10.06%
LT Debt to Assets 8.44% 1.94% 2.68% 2.28% 1.91% 1.56% 1.26%
Total Debt to Equity 11.00% 3.76% 4.91% 4.18% 3.51% 2.86% 2.30%
 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

ANNUAL SNAPSHOT : INCOME STATEMENT

All Fig in Millions Expect Per Share Amount

Years FY 2021 A FY 2022 A FY 2023 A FY 2024 F FY 2025 F

Revenues $ 53,823.0 $ 81,462.0 $ 96,773.0 $ 1,30,714.6 $ 1,76,560.8
Growth YoY - 51.35% 18.80% 35.07% 35.07%
Total cost of revenues ($ 40,217.0) ($ 60,609.0)($ 79,113.0) ($ 1,00,595.2)($ 1,35,877.4)
Gross Profit $ 13,606.0 $ 20,853.0 $ 17,660.0 $ 30,119.5 $ 40,683.4
Margin 25.28% 25.60% 18.25% 23.04% 23.04%
Research and development ($ 2,593.0) ($ 3,075.0) ($ 3,969.0) ($ 5,530.9) ($ 7,470.7)
Selling, general and administrative ($ 4,517.0) ($ 3,946.0) ($ 4,800.0) ($ 7,928.4) ($ 10,709.2)
Restructuring and other $ 27.0 ($ 176.0) - ($ 72.3) ($ 97.6)
Total Operating Expense ($ 7,083.0) ($ 7,197.0) ($ 8,769.0) ($ 13,531.6) ($ 18,277.6)
Margin -13.16% -8.83% -9.06% -10.35% -10.35%
EBITDA $ 11,190.0 $ 17,403.0 $ 11,802.0 $ 23,928.2 $ 31,679.3
% of Sales 20.79% 21.36% 12.20% 18.31% 17.94%
Depreciation & Amortization $ 4,667.0 $ 3,747.0 $ 2,911.0 $ 7,340.3 $ 9,273.5
% of Sales 8.67% 4.60% 3.01% 5.62% 5.25%
Income from operations $ 6,523.0 $ 13,656.0 $ 8,891.0 $ 16,587.9 $ 22,405.8
Margin 12.12% 16.76% 9.19% 12.69% 12.69%
Interest income $ 56.0 $ 297.0 $ 1,066.0 $ 266.9 $ 199.7
% of Sales 0.10% 0.36% 1.10% 0.20% 0.11%
Interest expense ($ 371.0) ($ 191.0) ($ 156.0) ($ 366.1) ($ 366.1)
% of Sales -0.69% -0.23% -0.16% -0.28% -0.21%
Other income (expense), net $ 135.0 ($ 43.0) $ 172.0 $ 172.0 $ 172.0
% of Sales 0.25% -0.05% 0.18% 0.13% 0.10%
Income before income taxes $ 6,343.0 $ 13,719.0 $ 9,973.0 $ 16,660.7 $ 22,411.5
Margin 11.78% 16.84% 10.31% 12.75% 12.69%
Provision for income taxes ($ 699.0) ($ 1,132.0) $ 5,001.0 ($ 3,498.7) ($ 4,706.4)
Net income $ 5,644.0 $ 12,587.0 $ 14,974.0 $ 13,161.9 $ 17,705.1
Margin 10.49% 15.45% 15.47% 10.07% 10.03%
non-controlling interests ($ 125.0) ($ 31.0) $ 23.0 ($ 23.0) ($ 23.0)
Net income to common stockholders $ 5,519.0 $ 12,556.0 $ 14,997.0 $ 13,138.9 $ 17,682.1
Margin 10.25% 15.41% 15.50% 10.05% 10.01%

Net income per share of common stock

Basic (in dollars per share) $ 1.9 $ 4.0 $ 4.7 $ 4.1 $ 5.6
Diluted (in dollars per share) $ 1.6 $ 3.6 $ 4.3 $ 3.8 $ 5.1

Weighted average shares

Basic (in shares) 2959.0 3130.0 3174.0 3174.0 3174.0
Diluted (in shares) 3386.0 3475.0 3485.0 3485.0 3485.0
Source : Company fillings, IIF Education
 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

ANNUAL SNAPSHOT : BALANCESHEET

All Fig in Millions Expect Per Share Amount

Current assets
Cash and cash equivalents $ 17,576.0 $ 16,253.0 $ 16,398.0 $ 25,294.2 $ 31,952.0
Short-term investments $ 131.0 $ 5,932.0 $ 12,696.0 $ 12,696.0 $ 12,696.0
Accounts receivable, net $ 1,913.0 $ 2,952.0 $ 3,508.0 $ 4,133.0 $ 5,737.9
Inventory $ 5,757.0 $ 12,839.0 $ 13,626.0 $ 16,128.9 $ 22,256.4
Prepaid expenses and other Curr assets $ 1,723.0 $ 2,941.0 $ 3,388.0 $ 3,388.0 $ 3,388.0
Total current assets $ 27,100.0 $ 40,917.0 $ 49,616.0 $ 61,640.2 $ 76,030.3
Operating lease vehicles, net $ 4,511.0 $ 5,035.0 $ 5,989.0 $ 5,989.0 $ 5,989.0
Solar Solar energy systems, net $ 5,765.0 $ 5,489.0 $ 5,229.0 $ 5,229.0 $ 5,229.0
Property, plant and equipment, net $ 18,884.0 $ 23,548.0 $ 29,725.0 $ 36,335.1 $ 45,904.7
Operating lease right-of-use assets $ 2,016.0 $ 2,563.0 $ 4,180.0 $ 4,180.0 $ 4,180.0
Digital assets, net $ 1,260.0 $ 184.0 $ 184.0 $ 184.0 $ 184.0
Intangible assets, net $ 257.0 $ 215.0 $ 178.0 $ 178.0 $ 178.0
Goodwill $ 200.0 $ 194.0 $ 253.0 $ 253.0 $ 253.0
Deferred tax assets - $ 328.0 $ 6,733.0 $ 6,733.0 $ 6,733.0
Other non-current assets $ 2,138.0 $ 3,865.0 $ 4,531.0 $ 4,531.0 $ 4,531.0
Total assets $ 62,131.0 $ 82,338.0 $ 1,06,618.0 $ 1,25,252.2 $ 1,49,212.1
Current liabilities
Accounts payable $ 10,025.0 $ 15,255.0 $ 14,431.0 $ 19,926.3 $ 26,204.1
Accrued liabilities and other $ 5,719.0 $ 8,205.0 $ 9,080.0 $ 9,080.0 $ 9,080.0
Deferred revenue $ 1,447.0 $ 1,747.0 $ 2,864.0 $ 2,864.0 $ 2,864.0
Customer deposits $ 925.0 - - - -
Current portion of debt $ 1,589.0 $ 1,502.0 $ 2,373.0 $ 2,373.0 $ 2,373.0
Total current liabilities $ 19,705.0 $ 26,709.0 $ 28,748.0 $ 34,243.3 $ 40,521.1
Debt and finance leases, net $ 5,245.0 $ 1,597.0 $ 2,857.0 $ 2,857.0 $ 2,857.0
Deferred revenue, net of current portion $ 2,052.0 $ 2,804.0 $ 3,251.0 $ 3,251.0 $ 3,251.0
Other long-term liabilities $ 3,546.0 $ 5,330.0 $ 8,153.0 $ 8,153.0 $ 8,153.0
Total liabilities $ 30,548.0 $ 36,440.0 $ 43,009.0 $ 48,504.3 $ 54,782.1
Commitments and contingencies (Note 15)
Redeemable non-controlling interests in
subsidiaries $ 568.0 $ 409.0 $ 242.0
Stockholders’ equity
Preferred stock - - -
Common Stock $ 3.0 $ 3.0 $ 3.0
Additional paid-in capital $ 29,803.0 $ 32,177.0 $ 34,892.0
Accumulated other comprehensive loss $ 54.0 ($ 361.0) ($ 143.0)
Total Equity Capital $ 30,428.0 $ 32,228.0 $ 34,994.0 $ 34,994.0 $ 34,994.0
Retained earnings $ 329.0 $ 12,885.0 $ 27,882.0 $ 41,020.9 $ 58,703.0
Total stockholders’ equity $ 30,757.0 $ 45,113.0 $ 62,876.0 $ 76,014.9 $ 93,697.0
Non-controlling interests in subsidiaries $ 826.0 $ 785.0 $ 733.0 $ 733.0 $ 733.0
Total liabilities and equity $ 62,131.0 $ 82,338.0 $ 1,06,618.0 $ 1,25,252.2 $ 1,49,212.1
Source : Company fillings, IIF Education
 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

ANNUAL SNAPSHOT : CASH FLOW STATEMENT

All Fig in Millions Expect Per Share Amount

Net Income $ 5,519.0 $ 12,556.0 $ 14,997.0 $ 13,138.9 $ 17,682.1

Depreciation & Amortization $ 4,667.0 $ 3,747.0 $ 2,911.0 $ 7,340.3 $ 9,273.5
Changes in Working Capital - ($ 2,891.0) ($ 2,167.0) $ 2,367.3 ($ 1,454.5)
Changes in Account Receivable $ 1,039.0 $ 556.0 $ 625.0 $ 1,604.8
Changes in Inventory $ 7,082.0 $ 787.0 $ 2,502.9 $ 6,127.5
Changes in Other Assets $ 1,218.0 $ 447.0 - -
Changes in Account Payable $ 5,230.0 ($ 824.0) $ 5,495.3 $ 6,277.8
Changes in Other Liabilities $ 1,784.0 $ 2,823.0 - -
Cash Flow from Operations (CFO) $ 10,186.0 $ 13,412.0 $ 15,741.0 $ 22,846.5 $ 25,501.0

Capital Expenditure ($ 8,898.0) ($ 7,158.0) ($ 6,482.0) ($ 13,950.3) ($ 18,843.2)

Cash Flow from Investing (CFI) ($ 8,898.0) ($ 7,158.0) ($ 6,482.0) ($ 13,950.3) ($ 18,843.2)

Equity Issuance / Equity Raise - -

Equity Repurchase - -
Dividend Paid - -
LT Debt Issuance - -
LT Debt Repayment - -
Current Debt Issue / Repay - -
Cash Flow from Financing (CFF) - -

Changes in Cash and Cash Equivalents $ 1,288.0 $ 6,254.0 $ 9,259.0 $ 8,896.2 $ 6,657.9

Opening Cash Balance $ 16,398.0 $ 25,294.2

Changes in Cash and Cash Equivalents $ 8,896.2 $ 6,657.9
Ending Cash Balance $ 17,576.0 $ 16,253.0 $ 16,398.0 $ 25,294.2 $ 31,952.0
Source : Company fillings, IIF Education
 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

VALUATION VALUATION :
Valuation Target Price : $ 209.1 (BUY)
EMM Model
PV of Future Cash Flow $ 2,29,813.5 Various valuation methodologies were employed to
PV of Terminal Value - PGM - establish a target price for Tesla, Inc. These included a 5-
EMM Multiple : year DCF (Discounted Cash Flow) analysis, a Relative
PV Of Terminal Value - EMM $ 5,95,589.4 Multiple Valuation utilizing Public Comparable Company
Enterprise Value $ 8,25,402.9 Analysis (CCA), and a Monte Carlo Simulation to model the
(-) Debt ($ 5,230.0) probability of various stock price outcomes. The analysis
(-) Min Interest ($ 23.0) incorporated the Precision-Guided Model (PGM) and the
(-) Preferred Share Out. - Exit Multiple Model (EMM) to enhance the accuracy and
(+) Cash $ 16,398.0 robustness of the valuation process.
Market Capital $ 8,36,547.9
Shares Outstanding 3485.00 DCF MODEL:
Implied Share Value $ 240
A Discounted Cash Flow Analysis was used to estimate the
PGM Model intrinsic value of Tesla, Inc. due to the predictability of cash
PV of Future Cash Flow $ 2,29,813.5 flows in relation to growth and profitability. The base case
PV of Terminal Value - PGM $ 3,82,824.4
for this model was formulated using guidance from
EMM Multiple : historical performance, industry outlook, an assessment of
PV Of Terminal Value - EMM Tesla's competitive positioning, and company guidance on
Enterprise Value $ 6,12,637.9 acquisitions, revenue, and earnings growth.
(-) Debt ($ 5,230.0)
(-) Min Interest ($ 23.0) This model is driven by Unlevered Free Cash Flow (FCF), as
(-) Preferred Share Out. - it represents cash that is available for debt and equity
(+) Cash $ 16,398.0 holders. Unlevered Free Cash Flow is calculated as EBIT
Market Capital $ 6,23,782.9 minus taxes, plus Depreciation and Amortization (D&A),
Shares Outstanding 3485.00 minus Capital Expenditures (Capex), and changes in Net
Implied Share Value $ 179 Working Capital.

DCF Multiple
The historical horizon considered for the analysis is from
Est. Price $ 179 $ 240 2021 to 2023, where we have observed steady sales growth
Weight 50% 50% rates and margins, making FCF forecasts more predictable
Target Price $ 209.1 and reliable. The resulting valuation target for Tesla, Inc. is
Source : Financial Modelling of Tesla, IIF Education
$201.1, suggesting a "BUY" recommendation at the current
market price of $175.79.
FREE CASH FLOW (FCF)
Years FY 2021 A FY 2022 A FY 2023 A FY 2024 F FY 2025 F
EBIT*(1-Tax Rate) $ 5,153.2 $ 10,788.2 $ 7,023.9 $ 30,615.9 $ 41,353.9
Depreciation & Amortization $ 4,667.0 $ 3,747.0 $ 2,911.0 $ 7,340.3 $ 9,273.5
Capex ($ 8,898.0) ($ 7,158.0) ($ 6,482.0) ($ 13,950.3) ($ 18,843.2)
Changes In Working Capital - ($ 2,891.0) ($ 2,167.0) $ 1,530.5 ($ 1,487.7)
Unlevered FCF $ 25,536.4 $ 30,296.6
Source : Financial Modelling of Tesla, IIF Education
 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

WACC WACC SUMMARY :

Tesla Inc. presents a compelling financial landscape
Debt $ 5,230.0
characterized by a judiciously balanced capital structure. The
Equity Cap $ 5,90,533.3
cost of debt, standing at 7.00%, unveils the interest rate
associated with the company's debt obligations. Notably, the
Target Capital Structure :
weight of debt in Tesla's overall capital configuration is
Debt to Total capitalization 0.88%
relatively conservative, constituting only 0.88%. This modest
Equity to Total capitalization 99.12%
debt level signals a prudent approach to financial leveraging,
mitigating potential risks.
Cost of Debt :
Cost of Debt 7.00%
Contrastingly, the lion's share of Tesla's financing, a
Tax Rate 21.00%
significant 99.12%, emanates from equity sources. This
After Tax Cost of Debt 5.53%
weight of equity underscores the company's reliance on
shareholder funds to fuel its operations and growth
Cost of Equity :
initiatives. The calculated cost of equity, derived through the
Risk-Free Rate 4.27%
Capital Asset Pricing Model (CAPM), provides a nuanced
Market Risk Premium 5.70%
insight into the return required by equity investors. With an
Levered Beta 1.69
assumed risk-free rate of 4.27%, a computed beta of 1.69,
Cost of Equity 13.90%
and a market risk premium of 5.70%, the cost of equity
encapsulates both the inherent risk associated with Tesla's
WACC 13.82%
stock and prevailing market conditions.
SENSITIVITY
The strategic balance between debt and equity within Tesla's
Exit Multiple capital structure is pivotal for investors seeking a
5.0x 6.0x 7.0x 8.0x 9.0x comprehensive understanding of the company's financial
12% 201 227 254 280 306 health. The higher beta suggests a heightened volatility
13% 196 221 247 272 297 relative to the broader market, adding a layer of risk that
14% 191 216 240 264 289 investors should consider. This risk assessment, coupled with
15% 187 210 234 257 281 the nuanced evaluation of the capital structure, equips
16% 182 205 228 250 273 investors with essential information to make informed
decisions aligned with their risk tolerance and investment
Perpetuity Growth
objectives.
2.0% 2.5% 3.0% 3.5% 4.0%
12% 201 207 214 222 231
Sensitivity Analysis :
13% 184 189 194 200 207
14% 170 174 179 183 188 PGM has a sensitivity of $ 179, indicating a $ 179 change for
15% 159 162 166 169 173 each unit variation in the underlying factor. On the other
16% 149 152 155 158 161 hand, EMM has a higher sensitivity at $ 240, implying a more
Valuation Assumption significant impact for every unit change in the influencing
Terminal Growth Rate 3% factor. These sensitivity values provide insights for decision-
EV/EBITDA 7.0x makers to assess the potential impact of variations on the
Source : Financial Modelling of Tesla, IIF Education
outcomes of PGM and EMM, aiding in risk management and
strategic decision-making.
 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

ANNUALLY SNAPSHOT :
Revenues Gross Profit / Margin
$ 1,20,000.0 45.00%
$ 2,38,486.8 40.00%
$ 1,00,000.0
35.00%

$ 1,76,560.8 $ 80,000.0 30.00%

25.00%
$ 1,30,714.6 $ 60,000.0
20.00%
$ 96,773.0
$ 40,000.0 15.00%
$ 81,462.0
10.00%
$ 53,823.0
$ 20,000.0
5.00%

- 0.00%
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
FY 2021 A FY 2022 A FY 2023 A FY 2024 F FY 2025 F FY 2026 F A A A F F F

Gross Profit Margin

Net Income / Margin Gross Profit / Margin

$ 60,000.0 25.00% $ 1,20,000.0 45.00%
40.00%
$ 50,000.0 $ 1,00,000.0
20.00% 35.00%
$ 40,000.0 $ 80,000.0 30.00%
15.00% 25.00%
$ 30,000.0 $ 60,000.0
20.00%
10.00%
$ 20,000.0 $ 40,000.0 15.00%
10.00%
$ 10,000.0 5.00% $ 20,000.0
5.00%
- 0.00% - 0.00%
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
A A A F F F A A A F F F

Net Income Margin Gross Profit Margin

Source : Financial Modelling of Tesla, IIF Education

 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

ANNUAL SNAPSHOT : INCOME STATEMENT (ASSUMPTIONS)

Years FY 2021 A FY 2022 A FY 2023 A FY 2024 F FY 2025 F

Revenues $ 53,823.0 $ 81,462.0 $ 96,773.0 $ 1,30,714.6 $ 1,76,560.8
Growth YoY - 51.35% 18.80% 35.07% 35.07%

Total cost of revenues ($ 40,217.0) ($ 60,609.0) ($ 79,113.0) ($ 78,428.8) ($ 1,05,936.5)

% of Sales -74.72% -74.40% -81.75% -60.00% -60.00%

Gross Profit $ 13,606.0 $ 20,853.0 $ 17,660.0 $ 52,285.9 $ 70,624.3

Margin 25.28% 25.60% 18.25% 40.00% 40.00%

Research and development ($ 2,593.0) ($ 3,075.0) ($ 3,969.0) ($ 5,530.9) ($ 7,470.7)

% of Sales -4.82% -3.77% -4.10% -4.23% -4.23%

Selling, general and administrative ($ 4,517.0) ($ 3,946.0) ($ 4,800.0) ($ 7,928.4) ($ 10,709.2)

% of Sales -8.39% -4.84% -4.96% -6.07% -6.07%

Restructuring and other $ 27.0 ($ 176.0) - ($ 72.3) ($ 97.6)

% of Sales 0.05% -0.22% 0.00% -0.06% -0.06%

Total Operating Expense ($ 7,083.0) ($ 7,197.0) ($ 8,769.0) ($ 13,531.6) ($ 18,277.6)

Margin -13.16% -8.83% -9.06% -10.35% -10.35%

EBITDA $ 11,190.0 $ 17,403.0 $ 11,802.0 $ 46,094.5 $ 61,620.2

% of Sales 20.79% 21.36% 12.20% 35.26% 34.90%

Depreciation & Amortization $ 4,667.0 $ 3,747.0 $ 2,911.0 $ 7,340.3 $ 9,273.5

% of Sales 8.67% 4.60% 3.01% 5.62% 5.25%

Income from operations $ 6,523.0 $ 13,656.0 $ 8,891.0 $ 38,754.3 $ 52,346.7

Margin 12.12% 16.76% 9.19% 29.65% 29.65%

REVENUE SUMMARY :
Despite a robust 51.35% year-over-year growth in 2022, followed by a moderate 18.80% in 2023, the
forecast for 2024 to 2028 remains cautiously optimistic with an average annual growth rate of 35.07%,
while best-case scenarios anticipate a 50% yearly increase and worst-case scenarios project a 20% annual
growth.
COGS SUMMARY :
Tesla Inc.'s COGS surged by 74.72% in 2021, followed by 74.40% in 2022, and a staggering 81.75% in 2023,
highlighting the urgent need for cost reduction strategies to enhance profitability and competitiveness in
the market.
 Global Region Equity Research

TESLA, INC
Can COGS Impact On Financial Performance ?

DISCLOSUSERS :
Ownership and Material Conflicts of Interest :
The author, or a member of their household, of this report does not hold a financial interest in the
securities of this company. The author, or a member of their household, of this report does not know of the
existence of any conflicts of interest that might bias the content or publication of this report.

Receipt of Compensation :
Compensation of the author of this report is not based on revenue.

Position as an Officer or Director :

The author, or a member of their household, does not serve as an officer, director, or advisory board
member of the subject company.

Market Making :
The author does not act as a market maker in the subject company’s securities.

Disclaimer :
The information set forth herein has been obtained or derived from sources generally available to the public
and believed by the author to be reliable, but the author does not make any representation or warranty,
express or implied, as to its accuracy or completeness. The information is not intended to be used as the
basis of any investment decisions by any person or entity. This information does not constitute investment
advice, nor is it an offer or a solicitation of an offer to buy or sell any security. This report should not be
considered to be a recommendation by any individual affiliated with Infinity Institute Of Finance.

This Equity Research Report is for educational purposes only. The information set forth herein has been
obtained or derived from sources generally available to the public and believed by the author(s) to be
reliable, but the author do not make any representation or warranty, express or implied, as to its accuracy
or completeness. The information is not intended to be used as the basis of any investment decisions by
any person or entity. This information does not constitute investment advice, nor is it an offer or a
solicitation of an offer to buy or sell any security. This report should not be considered to be a
recommendation by any individual affiliated with Infinity Institute Of Finance.