Unhampered with the losses and the analyst predictions, the company had been very firm in the future expansion and capital expenditure plans in 2017 to invest $2.0 billion and $2.5 billion for the production of the Model 3 and to construct the Giga factory respectively, while expanding the retail and service centers to boost its supercharger network. Few analysts have stated that the Tesla will declare insolvent in four months. Some had named the company as one the Ponzi scheme and other have called the stock of tesla worth less than zero.
The analysts had already named the company as one the potential candidates for the bankruptcy. One day prior to annual report declarations the CFO resigned, just adding to the ongoing woes of the troubled company. With the net losses aggravating from the year 2015 to in the year 2016, a whooping increase by 13 percent. On 23rd Feb 2017, Tesla, one of the most prominent names in the electric car industry declared yet another disappointing financials in the annual report for the year 2015 & 2016. Coupled with this higher costs of Maintenance, Research and Development, Selling, General and Administrative expenses have triggered the company towards Net Loss.įinancial Statements Analysis, Tesla Incorporation, Financial Ratios, Comparative Statements, Common-Size analysis, Research and Development Expenses. This study observed that Gross Profit for the Company was in increasing trend in absolute figures but when compared as a percentage of sales it reveals that Gross Profit has been decreased from 23% in 2015 & 2016 to 19% in 2017. and prepared Comparative and Common-size statements along with 17 financial ratios. Financial Statements has been downloaded from the official website of Tesla Inc. The current research has adopted descriptive method of research through secondary data. This study is an attempt to find answer/s to this question through Financial Statements analysis taking last three financial years i.e. But even after having potential market and new orders in the agenda of Tesla, Why the company ends up in declaring losses every year? This is a question in everyone’s mind. Instead, they can now charge their vehicles at home. Another reason why consumers seem to find the shift to electric cars feasible is the fact that consumers can now avoid the cumbersome process of fueling by going to a gas station. The gradual shift of the consumers towards the importance of environment-friendly automobile options has helped to facilitate this. Establishing its presence in the prominent markets of The United States, Europe, Asia and Canada, the reach of Tesla Inc. Tesla Incorporation (Inc.) has well engineered cars with extensive power and nominal emissions which had helped Tesla’s products to stand out and make a mark in this growing sector.
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