Nicolas Doblin
Dr. Minyard
MBA 706
11/25/2017
Financial Analysis Project – Tesla Inc.
Executive Summary
The company I decided to choose to make the Financial Analysis of is Tesla Inc.
This is a very famous car company, and they have been developing cars for many years.
Tesla, Inc. has been founded in 2003 by Elon Musk who is also known for having developed
PayPal or SpaceX. Tesla is an electric automobile manufacturer, and since 2017 they are also
selling Solar panel made with the same technology as the cars are using.
Therefore, it is a huge improvement for this corporation, and diversification is a turning point
for the company, which is projected to earn a lot of money thanks to this new technology.
As soon as the world heard about this Solar Panel technology, they thought it was an
non profitable investment, because people would never invest in such technology due to its
cost and use. However, Elon Musk has been clear about his position, and the engineer truly
believes that this is going to change everything. Nowadays, environment is a big concern,
because of global warming and climate change. If a company like Tesla is developing
environmental friendly technologies, this is going to be more attractive.
Petrol or gases are going to run out at some point. Moreover, the Earth isn’t going to
be able to handle CO2 emissions for a long time. That’s why developing electric technologies
or solar technologies is a step in the right direction.
Tesla just came out with new trucks and cars able to drive even longer than any other
cars. This is the future of automobiles, because batteries will last longer, and the charge for it
will be even faster. Therefore, we will not need to have gas engine, but more electric cars like
Tesla is developing. Gas resources are not unlimited, that’s why society tends to move to
electric vehicles.
However, Tesla’s cars are considered luxurious cars on the market, due to its
technology patterns and the materials used to make the car. It is a high-quality electric car,
and difficult to afford. Plus the development of charging stations is very slow. It is easier to
use electric cars only in the city environment so far, because the car’s autonomy doesn’t last
more than 300 miles.
If the world is tending to move into the electric cars, then we will see more facilities
for it. For instance, some companies are providing electric vehicles for its employees so they
don’t pollute for professional trips. They are also equipped with charging station on the
parking lot in order to recharge the battery. So, the transition from gas to electric cars is on its
way and it is going to be a revolution very soon.
Now, let’s talk about Tesla’s financial situation and see how this company has been
doing in the last 5 years. After analyzing the financial situation, we will be able to make some
projections and maybe Tesla has a brightest future than we expect.
I) Income Statement
1) Sales, Profit & COGS:
Sales went from 150 to 1,432 in 5 years which is an increase of 855%. So we can say
Tesla has been doing pretty good in selling cars.
Profit:
Profit is doing good when the sales are doing good, so it’s easy to predict a huge increase. It
went from 30M to 1,599M, which is an increase of 523%.
It shows how well Tesla has been doing in Sales and Profit from 2012 to 2017.
COGS:
From 383 M to 5430 M= Increase of 1,318%
2) Expenses, Net income:
Expenses:
From 424M to 2,267M = increase of 435%. In order to develop its new technologies Tesla
