Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.

Consolidated Balance Sheets

(in millions, except per share data)
|    |                                                                                                                                                       |                  |         |                  |        |    |        |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
|  1 |                                                                                                                                                       | December 31,2023 |         | December 31,2022 |        |    |        |
|  2 | Assets                                                                                                                                                |                  |         |                  |        |    |        |
|  3 | Current assets                                                                                                                                        |                  |         |                  |        |    |        |
|  4 | Cash and cash equivalents                                                                                                                             | $                | 16,398  |                  |        | $  | 16,253 |
|  5 | Short-term investments                                                                                                                                | 12,696           |         |                  | 5,932  |    |        |
|  6 | Accounts receivable, net                                                                                                                              | 3,508            |         |                  | 2,952  |    |        |
|  7 | Inventory                                                                                                                                             | 13,626           |         |                  | 12,839 |    |        |
|  8 | Prepaid expenses and other current assets                                                                                                             | 3,388            |         |                  | 2,941  |    |        |
|  9 | Total current assets                                                                                                                                  | 49,616           |         |                  | 40,917 |    |        |
| 10 | Operating lease vehicles, net                                                                                                                         | 5,989            |         |                  | 5,035  |    |        |
| 11 | Solar energy systems, net                                                                                                                             | 5,229            |         |                  | 5,489  |    |        |
| 12 | Property, plant and equipment, net                                                                                                                    | 29,725           |         |                  | 23,548 |    |        |
| 13 | Operating lease right-of-use assets                                                                                                                   | 4,180            |         |                  | 2,563  |    |        |
| 14 | Digital assets, net                                                                                                                                   | 184              |         |                  | 184    |    |        |
| 15 | Intangible assets, net                                                                                                                                | 178              |         |                  | 215    |    |        |
| 16 | Goodwill                                                                                                                                              | 253              |         |                  | 194    |    |        |
| 17 | Deferred tax assets                                                                                                                                   | 6,733            |         |                  | 328    |    |        |
| 18 | Other non-current assets                                                                                                                              | 4,531            |         |                  | 3,865  |    |        |
| 19 | Total assets                                                                                                                                          | $                | 106,618 |                  |        | $  | 82,338 |
| 20 | Liabilities                                                                                                                                           |                  |         |                  |        |    |        |
| 21 | Current liabilities                                                                                                                                   |                  |         |                  |        |    |        |
| 22 | Accounts payable                                                                                                                                      | $                | 14,431  |                  |        | $  | 15,255 |
| 23 | Accrued liabilities and other                                                                                                                         | 9,080            |         |                  | 8,205  |    |        |
| 24 | Deferred revenue                                                                                                                                      | 2,864            |         |                  | 1,747  |    |        |
| 25 | Current portion of debt and finance leases                                                                                                            | 2,373            |         |                  | 1,502  |    |        |
| 26 | Total current liabilities                                                                                                                             | 28,748           |         |                  | 26,709 |    |        |
| 27 | Debt and finance leases, net of current portion                                                                                                       | 2,857            |         |                  | 1,597  |    |        |
| 28 | Deferred revenue, net of current portion                                                                                                              | 3,251            |         |                  | 2,804  |    |        |
| 29 | Other long-term liabilities                                                                                                                           | 8,153            |         |                  | 5,330  |    |        |
| 30 | Total liabilities                                                                                                                                     | 43,009           |         |                  | 36,440 |    |        |
| 31 | Commitments and contingencies (Note 15)                                                                                                               |                  |         |                  |        |    |        |
| 32 | Redeemable noncontrolling interests in subsidiaries                                                                                                   | 242              |         |                  | 409    |    |        |
| 33 | Equity                                                                                                                                                |                  |         |                  |        |    |        |
| 34 | Stockholders' equity                                                                                                                                  |                  |         |                  |        |    |        |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding                                                            | -                |         |                  | -      |    |        |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3                |         |                  | 3      |    |        |
| 37 | Additional paid-in capital                                                                                                                            | 34,892           |         |                  | 32,177 |    |        |
| 38 | Accumulated other comprehensive loss                                                                                                                  | (143)            |         |                  | (361)  |    |        |
| 39 | Retained earnings                                                                                                                                     | 27,882           |         |                  | 12,885 |    |        |
| 40 | Total stockholders' equity                                                                                                                            | 62,634           |         |                  | 44,704 |    |        |
| 41 | Noncontrolling interests in subsidiaries                                                                                                              | 733              |         |                  | 785    |    |        |
| 42 | Total liabilities and equity                                                                                                                          | $                | 106,618 |                  |        | $  | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49




, Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.

Consolidated Statements of Operations

(in millions, except per share data)
|    |                                                                                                                    |                         |        |       |        |       |        |        |    |        |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
|  1 |                                                                                                                    | Year Ended December 31, |        |       |        |       |        |        |    |        |
|  2 |                                                                                                                    | 2023                    |        | 2022  |        | 2021  |        |        |    |        |
|  3 | Revenues                                                                                                           |                         |        |       |        |       |        |        |    |        |
|  4 | Automotive sales                                                                                                   | $                       | 78,509 |       |        | $     | 67,210 |        | $  | 44,125 |
|  5 | Automotive regulatory credits                                                                                      | 1,790                   |        |       | 1,776  |       |        | 1,465  |    |        |
|  6 | Automotive leasing                                                                                                 | 2,120                   |        |       | 2,476  |       |        | 1,642  |    |        |
|  7 | Total automotive revenues                                                                                          | 82,419                  |        |       | 71,462 |       |        | 47,232 |    |        |
|  8 | Energy generation and storage                                                                                      | 6,035                   |        |       | 3,909  |       |        | 2,789  |    |        |
|  9 | Services and other                                                                                                 | 8,319                   |        |       | 6,091  |       |        | 3,802  |    |        |
| 10 | Total revenues                                                                                                     | 96,773                  |        |       | 81,462 |       |        | 53,823 |    |        |
| 11 | Cost of revenues                                                                                                   |                         |        |       |        |       |        |        |    |        |
| 12 | Automotive sales                                                                                                   | 65,121                  |        |       | 49,599 |       |        | 32,415 |    |        |
| 13 | Automotive leasing                                                                                                 | 1,268                   |        |       | 1,509  |       |        | 978    |    |        |
| 14 | Total automotive cost of revenues                                                                                  | 66,389                  |        |       | 51,108 |       |        | 33,393 |    |        |
| 15 | Energy generation and storage                                                                                      | 4,894                   |        |       | 3,621  |       |        | 2,918  |    |        |
| 16 | Services and other                                                                                                 | 7,830                   |        |       | 5,880  |       |        | 3,906  |    |        |
| 17 | Total cost of revenues                                                                                             | 79,113                  |        |       | 60,609 |       |        | 40,217 |    |        |
| 18 | Gross profit                                                                                                       | 17,660                  |        |       | 20,853 |       |        | 13,606 |    |        |
| 19 | Operating expenses                                                                                                 |                         |        |       |        |       |        |        |    |        |
| 20 | Research and development                                                                                           | 3,969                   |        |       | 3,075  |       |        | 2,593  |    |        |
| 21 | Selling, general and administrative                                                                                | 4,800                   |        |       | 3,946  |       |        | 4,517  |    |        |
| 22 | Restructuring and other                                                                                            | -                       |        |       | 176    |       |        | (27)   |    |        |
| 23 | Total operating expenses                                                                                           | 8,769                   |        |       | 7,197  |       |        | 7,083  |    |        |
| 24 | Income from operations                                                                                             | 8,891                   |        |       | 13,656 |       |        | 6,523  |    |        |
| 25 | Interest income                                                                                                    | 1,066                   |        |       | 297    |       |        | 56     |    |        |
| 26 | Interest expense                                                                                                   | (156)                   |        |       | (191)  |       |        | (371)  |    |        |
| 27 | Other income (expense), net                                                                                        | 172                     |        |       | (43)   |       |        | 135    |    |        |
| 28 | Income before income taxes                                                                                         | 9,973                   |        |       | 13,719 |       |        | 6,343  |    |        |
| 29 | (Benefit from) provision for income taxes                                                                          | (5,001)                 |        |       | 1,132  |       |        | 699    |    |        |
| 30 | Net income                                                                                                         | 14,974                  |        |       | 12,587 |       |        | 5,644  |    |        |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23)                    |        |       | 31     |       |        | 125    |    |        |
| 32 | Net income attributable to common stockholders                                                                     | $                       | 14,997 |       |        | $     | 12,556 |        | $  | 5,519  |
| 34 | Net income per share of common stock attributable to common stockholders                                           |                         |        |       |        |       |        |        |    |        |
| 35 | Basic                                                                                                              | $                       | 4.73   |       |        | $     | 4.02   |        | $  | 1.87   |
| 36 | Diluted                                                                                                            | $                       | 4.30   |       |        | $     | 3.62   |        | $  | 1.63   |
| 37 | Weighted average shares used in computing net income per share of common stock                                     |                         |        |       |        |       |        |        |    |        |
| 38 | Basic                                                                                                              | 3,174                   |        | 3,130 |        | 2,959 |        |        |    |        |
| 39 | Diluted                                                                                                            | 3,485                   |        | 3,475 |        | 3,386 |        |        |    |        |
The accompanying notes are an integral part of these consolidated financial statements.
50






Question: What was Tesla's return on equity (ROE) for the year 2023?
Answer: To calculate Tesla's ROE for 2023, we use the formula: ROE = Net Income / Total Stockholders' Equity. For 2023, ROE = $14,974 million / $62,634 million = 23.9%.