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1、 K id UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 30,2023ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE A

2、CT OF 1934For the transition period from _ to _Commission File Number:001-34756Tesla,Inc.(Exact name of registrant as specified in its charter)Delaware 91-2197729(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification No.)1 Tesla RoadAustin,Texas 78725(Address of p

3、rincipal executive offices)(Zip Code)(512)516-8177(Registrants telephone number,including area code)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon stockTSLAThe Nasdaq Global Select Market Indicate by check

4、 mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934(“Exchange Act”)during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing

5、 requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the

6、registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“

7、smaller reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act:Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the registrant has elected not to use the

8、extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes No As of July 17,2023,there were 3,

9、173,994,467 shares of the registrants common stock outstanding.TESLA,INC.FORM 10-Q FOR THE QUARTER ENDED JUNE 30,2023INDEX PagePART I.FINANCIAL INFORMATION Item 1.Financial Statements 4 Consolidated Balance Sheets 4 Consolidated Statements of Operations 5 Consolidated Statements of Comprehensive Inc

10、ome 6 Consolidated Statements of Redeemable Noncontrolling Interests and Equity 7 Consolidated Statements of Cash Flows 9 Notes to Consolidated Financial Statements 10Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations 24Item 3.Quantitative and Qualitative Dis

11、closures about Market Risk 32Item 4.Controls and Procedures 33 PART II.OTHER INFORMATION Item 1.Legal Proceedings 33Item 1A.Risk Factors 33Item 2.Unregistered Sales of Equity Securities and Use of Proceeds 33Item 3.Defaults Upon Senior Securities 33Item 4.Mine Safety Disclosures 33Item 5.Other Infor

12、mation 33Item 6.Exhibits 34 Signatures 36 Forward-Looking StatementsThe discussions in this Quarterly Report on Form 10-Q contain forward-looking statements reflecting our current expectations that involve risks and uncertainties.These forward-looking statements include,but are not limited to,statem

13、ents concerning any potential future impact of the coronavirus disease(“COVID-19”)pandemic on our business,supply chain constraints,our strategy,competition,future operations and production capacity,future financial position,future revenues,projected costs,profitability,expected cost reductions,capi

14、tal adequacy,expectations regarding demand and acceptance for our technologies,growth opportunities and trends in the markets in which we operate,prospects and plans and objectives of management.The words“anticipates,”“believes,”“could,”“estimates,”“expects,”“intends,”“may,”“plans,”“projects,”“will,

15、”“would”and similar expressions are intended to identify forward-looking statements,although not all forward-looking statements contain these identifying words.We may not actually achieve the plans,intentions or expectations disclosed in our forward-looking statements and you should not place undue

16、reliance on our forward-looking statements.Actual results or events could differ materially from the plans,intentions and expectations disclosed in the forward-looking statements that we make.These forward-looking statements involve risks and uncertainties that could cause our actual results to diff

17、er materially from those in the forward-looking statements,including,without limitation,the risks set forth in Part I,Item 1A,“Risk Factors”of the Annual Report on Form 10-K for the fiscal year ended December 31,2022 and that are otherwise described or updated from time to time in our other filings

18、with the Securities and Exchange Commission(the“SEC”).We do not assume any obligation to update any forward-looking statements.PART I.FINANCIAL INFORMATIONITEM 1.FINANCIAL STATEMENTSTesla,Inc.Consolidated Balance Sheets(in millions,except per share data)(unaudited)June 30,December 31,2023 2022 Asset

19、s Current assets Cash and cash equivalents$15,296$16,253 Short-term investments 7,779 5,932 Accounts receivable,net 3,447 2,952 Inventory 14,356 12,839 Prepaid expenses and other current assets 2,997 2,941 Total current assets 43,875 40,917 Operating lease vehicles,net 5,935 5,035 Solar energy syste

20、ms,net 5,365 5,489 Property,plant and equipment,net 26,389 23,548 Operating lease right-of-use assets 3,352 2,563 Digital assets,net 184 184 Intangible assets,net 202 215 Goodwill 263 194 Other non-current assets 5,026 4,193 Total assets$90,591$82,338 Liabilities Current liabilities Accounts payable

21、$15,273$15,255 Accrued liabilities and other 7,658 7,142 Deferred revenue 2,176 1,747 Customer deposits 1,026 1,063 Current portion of debt and finance leases 1,459 1,502 Total current liabilities 27,592 26,709 Debt and finance leases,net of current portion 872 1,597 Deferred revenue,net of current

22、portion 3,021 2,804 Other long-term liabilities 6,924 5,330 Total liabilities 38,409 36,440 Commitments and contingencies(Note 9)Redeemable noncontrolling interests in subsidiaries 288 409 Equity Stockholders equity Preferred stock;$0.001 par value;100 shares authorized;no shares issued and outstand

23、ing Common stock;$0.001 par value;6,000 shares authorized;3,174 and 3,164 shares issued and outstanding as of June 30,2023 and December 31,2022,respectively 3 3 Additional paid-in capital 33,436 32,177 Accumulated other comprehensive(loss)(410)(361)Retained earnings 18,101 12,885 Total stockholders

24、equity 51,130 44,704 Noncontrolling interests in subsidiaries 764 785 Total liabilities and equity$90,591$82,338 The accompanying notes are an integral part of these consolidated financial statements.4 Tesla,Inc.Consolidated Statements of Operations(in millions,except per share data)(unaudited)Three

25、 Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Revenues Automotive sales$20,419$13,670$39,297$29,184 Automotive regulatory credits 282 344 803 1,023 Automotive leasing 567 588 1,131 1,256 Total automotive revenues 21,268 14,602 41,231 31,463 Energy generation and storage 1,509 86

26、6 3,038 1,482 Services and other 2,150 1,466 3,987 2,745 Total revenues 24,927 16,934 48,256 35,690 Cost of revenues Automotive sales 16,841 10,153 32,263 21,067 Automotive leasing 338 368 671 776 Total automotive cost of revenues 17,179 10,521 32,934 21,843 Energy generation and storage 1,231 769 2

27、,592 1,457 Services and other 1,984 1,410 3,686 2,696 Total cost of revenues 20,394 12,700 39,212 25,996 Gross profit 4,533 4,234 9,044 9,694 Operating expenses Research and development 943 667 1,714 1,532 Selling,general and administrative 1,191 961 2,267 1,953 Restructuring and other 142 142 Total

28、 operating expenses 2,134 1,770 3,981 3,627 Income from operations 2,399 2,464 5,063 6,067 Interest income 238 26 451 54 Interest expense (28)(44)(57)(105)Other income,net 328 28 280 84 Income before income taxes 2,937 2,474 5,737 6,100 Provision for income taxes 323 205 584 551 Net income 2,614 2,2

29、69 5,153 5,549 Net(loss)income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries (89)10 (63)(28)Net income attributable to common stockholders$2,703$2,259$5,216$5,577 Net income per share of common stock attributable to common stockholders(1)Basic$0.85$

30、0.73$1.65$1.79 Diluted$0.78$0.65$1.50$1.61 Weighted average shares used in computing net income per share of common stock(1)Basic 3,171 3,111 3,168 3,107 Diluted 3,478 3,464 3,473 3,469 (1)Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stoc

31、k dividend in August 2022.The accompanying notes are an integral part of these consolidated financial statements.5 Tesla,Inc.Consolidated Statements of Comprehensive Income(in millions)(unaudited)Three Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Net income$2,614$2,269$5,153$5,5

32、49 Other comprehensive income(loss):Foreign currency translation adjustment (184)(421)(54)(517)Unrealized net(loss)gain on investments (5)(6)1 (14)Adjustment for net loss realized and included in net income 4 4 Comprehensive income 2,429 1,842 5,104 5,018 Less:Comprehensive(loss)income attributable

33、to noncontrolling interests and redeemable noncontrolling interests in subsidiaries (89)10 (63)(28)Comprehensive income attributable to common stockholders$2,518$1,832$5,167$5,046 The accompanying notes are an integral part of these consolidated financial statements.6 Tesla,Inc.Consolidated Statemen

34、ts of Redeemable Noncontrolling Interests and Equity(in millions,except per share data)(unaudited)Accumulated Redeemable Additional Other Total Noncontrolling Noncontrolling Common Stock Paid-In Comprehensive Retained Stockholders Interests in Total Three Months Ended June 30,2023 Interests Shares A

35、mount Capital (Loss)Earnings Equity Subsidiaries Equity Balance as of March 31,2023$407 3,169$3$32,878$(225)$15,398$48,054$774$48,828 Exercises of conversion feature of convertible senior notes 0 0 0 0 0 Issuance of common stock for equity incentive awards 5 0 63 63 63 Stock-based compensation 495 4

36、95 495 Distributions to noncontrolling interests (9)(28)(28)Buy-outs of noncontrolling interests (3)Net income (107)2,703 2,703 18 2,721 Other comprehensive income (185)(185)(185)Balance as of June 30,2023$288 3,174$3$33,436$(410)$18,101$51,130$764$51,894 Accumulated Redeemable Additional Other Tota

37、l Noncontrolling Noncontrolling Common Stock Paid-In Comprehensive Retained Stockholders Interests in Total Six Months Ended June 30,2023 Interests Shares Amount Capital (Loss)Earnings Equity Subsidiaries Equity Balance as of December 31,2022$409 3,164$3$32,177$(361)$12,885$44,704$785$45,489 Exercis

38、es of conversion feature of convertible senior notes 0 0 0 0 0 Issuance of common stock for equity incentive awards 10 0 294 294 294 Stock-based compensation 960 960 960 Distributions to noncontrolling interests (14)(50)(50)Buy-outs of noncontrolling interests (3)5 5 (12)(7)Net income (104)5,216 5,2

39、16 41 5,257 Other comprehensive income (49)(49)(49)Balance as of June 30,2023$288 3,174$3$33,436$(410)$18,101$51,130$764$51,894 7 Accumulated Redeemable Additional Other Total Noncontrolling Noncontrolling Common Stock Paid-In Comprehensive Retained Stockholders Interests in Total Three Months Ended

40、 June 30,2022 Interests Shares(1)Amount(1)Capital (Loss)Earnings(1)Equity Subsidiaries Equity Balance as of March 31,2022$459 3,108$3$30,485$(50)$3,647$34,085$862$34,947 Exercises of conversion feature of convertible senior notes 0 0 0 0 0 Settlement of warrants 8 0 0 0 0 Issuance of common stock fo

41、r equity incentive awards 6 0 43 43 43 Stock-based compensation 419 419 419 Distributions to noncontrolling interests (13)(26)(26)Buy-out of noncontrolling interests (10)(3)(3)(3)Net(loss)income (15)2,259 2,259 25 2,284 Other comprehensive loss (427)(427)(427)Balance as of June 30,2022$421 3,122$3$3

42、0,944$(477)$5,906$36,376$861$37,237 Accumulated Redeemable Additional Other Total Noncontrolling Noncontrolling Common Stock Paid-In Comprehensive Retained Stockholders Interests in Total Six Months Ended June 30,2022 Interests Shares(1)Amount(1)Capital Income(Loss)Earnings(1)Equity Subsidiaries Equ

43、ity Balance as of December 31,2021$568 3,100$3$29,803$54$329$30,189$826$31,015 Exercises of conversion feature of convertible senior notes 0 0 0 0 0 Settlements of warrants 8 0 0 0 0 Issuance of common stock for equity incentive awards 14 0 245 245 245 Stock-based compensation 904 904 904 Distributi

44、ons to noncontrolling interests (25)(48)(48)Buy-out of noncontrolling interests (11)(8)(8)(8)Net(loss)income (111)5,577 5,577 83 5,660 Other comprehensive loss (531)(531)(531)Balance as of June 30,2022$421 3,122$3$30,944$(477)$5,906$36,376$861$37,237 (1)Prior period results have been adjusted to ref

45、lect the three-for-one stock split effected in the form of a stock dividend in August 2022.The accompanying notes are an integral part of these consolidated financial statements.8 Tesla,Inc.Consolidated Statements of Cash Flows(in millions)(unaudited)Six Months Ended June 30,2023 2022 Cash Flows fro

46、m Operating Activities Net income$5,153$5,549 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation,amortization and impairment 2,200 1,802 Stock-based compensation 863 779 Inventory and purchase commitments write-downs 217 58 Foreign currency transaction net

47、unrealized gain (283)(52)Non-cash interest and other operating activities 59 52 Digital assets gain,net 106 Changes in operating assets and liabilities:Accounts receivable (504)(233)Inventory (2,116)(2,192)Operating lease vehicles (1,387)(795)Prepaid expenses and other current assets (5)(533)Other n

48、on-current assets (1,854)(1,042)Accounts payable and accrued liabilities 934 1,406 Deferred revenue 661 648 Customer deposits 16 292 Other long-term liabilities 1,624 501 Net cash provided by operating activities 5,578 6,346 Cash Flows from Investing Activities Purchases of property and equipment ex

49、cluding finance leases,net of sales (4,132)(3,497)Purchases of solar energy systems,net of sales (1)(5)Proceeds from sales of digital assets 936 Purchase of intangible assets (9)Purchases of investments (7,090)(476)Proceeds from maturities of investments 5,143 Proceeds from sales of investments 138

50、Business combinations,net of cash acquired (76)Net cash used in investing activities (6,018)(3,051)Cash Flows from Financing Activities Repayments of convertible and other debt (543)(2,219)Proceeds from exercises of stock options and other stock issuances 294 245 Principal payments on finance leases

51、 (222)(251)Debt issuance costs (13)Distributions paid to noncontrolling interests in subsidiaries (67)(76)Payments for buy-outs of noncontrolling interests in subsidiaries (10)(19)Net cash used in financing activities (561)(2,320)Effect of exchange rate changes on cash and cash equivalents and restr

52、icted cash (44)(232)Net(decrease)increase in cash and cash equivalents and restricted cash (1,045)743 Cash and cash equivalents and restricted cash,beginning of period 16,924 18,144 Cash and cash equivalents and restricted cash,end of period$15,879$18,887 Supplemental Non-Cash Investing and Financin

53、g Activities Acquisitions of property and equipment included in liabilities$1,831$1,636 Leased assets obtained in exchange for finance lease liabilities$4$36 Leased assets obtained in exchange for operating lease liabilities$1,083$445 The accompanying notes are an integral part of these consolidated

54、 financial statements.9 Tesla,Inc.Notes to Consolidated Financial Statements(unaudited)Note 1 Summary of Significant Accounting PoliciesUnaudited Interim Financial StatementsThe consolidated financial statements of Tesla,Inc.(“Tesla”,the“Company”,“we”,“us”or“our”),including the consolidated balance

55、sheet as of June 30,2023,the consolidated statements of operations,the consolidated statements of comprehensive income,the consolidated statements of redeemable noncontrolling interests and equity for the three and six months ended June 30,2023 and 2022,and the consolidated statements of cash flows

56、for the six months ended June 30,2023 and 2022,as well as other information disclosed in the accompanying notes,are unaudited.The consolidated balance sheet as of December 31,2022 was derived from the audited consolidated financial statements as of that date.The interim consolidated financial statem

57、ents and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31,2022.The interim consolidated financial statements and the accompanying notes have bee

58、n prepared on the same basis as the annual consolidated financial statements and,in the opinion of management,reflect all adjustments,which include only normal recurring adjustments,necessary for a fair statement of the results of operations for the periods presented.The consolidated results of oper

59、ations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.ReclassificationsCertain prior period balances have been reclassified to conform to the current period presentation in the accompanying notes.

60、Revenue RecognitionRevenue by sourceThe following table disaggregates our revenue by major source(in millions):Three Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Automotive sales$20,419$13,670$39,297$29,184 Automotive regulatory credits 282 344 803 1,023 Energy generation and st

61、orage sales 1,359 717 2,772 1,220 Services and other 2,150 1,466 3,987 2,745 Total revenues from sales and services 24,210 16,197 46,859 34,172 Automotive leasing 567 588 1,131 1,256 Energy generation and storage leasing 150 149 266 262 Total revenues$24,927$16,934$48,256$35,690 Automotive SegmentAu

62、tomotive Sales RevenueDeferred revenue is related to the access to our Full Self Driving(“FSD”)features and ongoing maintenance,internet connectivity,free Supercharging programs and over-the-air software updates primarily on automotive sales,which amounted to$3.17 billion and$2.91 billion as of June

63、 30,2023 and December 31,2022,respectively.Deferred revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied,or partially unsatisfied,as of the balance sheet date.Revenue recognized from the deferred revenue balance as of December 31,2022 and

64、 2021 was$256 million and$121 million for six months ended June 30,2023 and 2022,respectively.Of the total deferred revenue balance as of June 30,2023,we expect to recognize$747 million of revenue in the next 12 months.The remaining balance will be recognized at the time of transfer of control of th

65、e product or over the performance period.We have been providing loans for financing our automotive deliveries in volume since fiscal year 2022.As of June 30,2023 and December 31,2022,we have recorded net financing receivables on the consolidated balance sheets,of which$234 million and$128 million,re

66、spectively,is recorded within Accounts receivable,net,for the current portion and$1.15 billion and$665 million,respectively,is recorded within Other non-current assets for the long-term portion.10 Automotive Regulatory CreditsDuring the six months ended June 30,2022,we had also recognized$288 millio

67、n in revenue due to changes in regulation which entitled us to additional consideration for credits sold previously.Automotive Leasing RevenueDirect Sales-Type Leasing ProgramFor the three and six months ended June 30,2023,we recognized$76 million and$177 million,respectively,of sales-type leasing r

68、evenue and$57 million and$133 million,respectively,of sales-type leasing cost of revenue.For the three and six months ended June 30,2022,we recognized$133 million and$398 million,respectively,of sales-type leasing revenue and$82 million and$246 million,respectively,of sales-type leasing cost of reve

69、nue.Lease receivables relating to sales-type leases are presented on the consolidated balance sheets as follows(in millions):June 30,2023 December 31,2022 Gross lease receivables$882$837 Unearned interest income (96)(95)Allowance for expected credit losses (6)(4)Net investment in sales-type leases$7

70、80$738 Reported as:Prepaid expenses and other current assets$187$164 Other non-current assets 593 574 Net investment in sales-type leases$780$738 Energy Generation and Storage SegmentEnergy Generation and Storage SalesWe record as deferred revenue any non-refundable amounts that are collected from c

71、ustomers related to fees charged for prepayments,which is recognized as revenue ratably over the respective customer contract term.As of June 30,2023 and December 31,2022,deferred revenue related to such customer payments amounted to$1.10 billion and$863 million,respectively,mainly due to billings f

72、or milestone payments.Revenue recognized from the deferred revenue balance as of December 31,2022 and 2021 was$329 million and$79 million for the six months ended June 30,2023 and 2022,respectively.As of June 30,2023,total transaction price allocated to performance obligations that were unsatisfied

73、or partially unsatisfied for contracts with an original expected length of more than one year was$814 million.Of this amount,we expect to recognize$207 million in the next 12 months and the rest over the remaining performance obligation period.We have been providing loans for financing our energy ge

74、neration products in volume since fiscal year 2022.As of June 30,2023 and December 31,2022,we have recorded net financing receivables on the consolidated balance sheets,of which$28 million and$24 million,respectively,is recorded within Accounts receivable,net,for the current portion and$504 million

75、and$387 million,respectively,is recorded within Other non-current assets for the long-term portion.Income TaxesThere are transactions that occur during the ordinary course of business for which the ultimate tax determination is uncertain.As of June 30,2023 and December 31,2022,the aggregate balances

76、 of our gross unrecognized tax benefits were$1.01 billion and$870 million,respectively,of which$601 million and$572 million,respectively,would not give rise to changes in our effective tax rate since these tax benefits would increase a deferred tax asset that is currently fully offset by a valuation

77、 allowance.We file income tax returns in the U.S.and various state and foreign jurisdictions.We are currently under examination by the Internal Revenue Service(“IRS”)for the years 2015 to 2018.Additional tax years within the periods 2004 to 2014 and 2019 to 2021 remain subject to examination for fed

78、eral income tax purposes.All net operating losses and tax credits generated to date are subject to adjustment for U.S.federal and state income tax purposes.Our returns for 2004 and subsequent tax years remain subject to examination in U.S.state and foreign jurisdictions.Given the uncertainty in timi

79、ng and outcome of our tax examinations,an estimate of the range of the reasonably possible change in gross unrecognized tax benefits within twelve months cannot be made at this time.11 Net Income per Share of Common Stock Attributable to Common StockholdersThe following table presents the reconcilia

80、tion of net income attributable to common stockholders to net income used in computing basic and diluted net income per share of common stock(in millions):Three Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Net income attributable to common stockholders$2,703$2,259$5,216$5,577 Le

81、ss:Buy-out of noncontrolling interest 0 3 (5)8 Net income used in computing basic net income per share of common stock 2,703 2,256 5,221 5,569 Less:Dilutive convertible debt 0 0 0 1 Net income used in computing diluted net income per share of common stock$2,703$2,256$5,221$5,568 The following table

82、presents the reconciliation of basic to diluted weighted average shares used in computing net income per share of common stock attributable to common stockholders,as adjusted to give effect to the three-for-one stock split effected in the form of a stock dividend in August 2022(the“2022 Stock Split”

83、)(in millions):Three Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Weighted average shares used in computing net income per share of common stock,basic 3,171 3,111 3,168 3,107 Add:Stock-based awards 294 302 292 308 Convertible senior notes 2 3 2 4 Warrants 11 48 11 50 Weighted av

84、erage shares used in computing net income per share of common stock,diluted 3,478 3,464 3,473 3,469 The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income per share of common stock attributable to common stockholders,because their e

85、ffect was anti-dilutive,as adjusted to give effect to the 2022 Stock Split(in millions):Three Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Stock-based awards 15 3 17 2 Restricted CashOur total cash and cash equivalents and restricted cash,as presented in the consolidated stateme

86、nts of cash flows,was as follows(in millions):June 30,December 31,June 30,December 31,2023 2022 2022 2021 Cash and cash equivalents$15,296$16,253$18,324$17,576 Restricted cash included in prepaid expenses and other current assets 384 294 294 345 Restricted cash included in other non-current assets 1

87、99 377 269 223 Total as presented in the consolidated statements of cash flows$15,879$16,924$18,887$18,144 12 Accounts Receivable and Allowance for Doubtful AccountsDepending on the day of the week on which the end of a fiscal quarter falls,our accounts receivable balance may fluctuate as we are wai

88、ting for certain customer payments to clear through our banking institutions and receipts of payments from our financing partners,which can take up to approximately two weeks based on the contractual payment terms with such partners.Our accounts receivable balances associated with our sales of regul

89、atory credits,which are typically transferred to other manufacturers during the last few days of the quarter,is dependent on contractual payment terms.Additionally,government rebates can take up to a year or more to be collected depending on the customary processing timelines of the specific jurisdi

90、ctions issuing them.These various factors may have a significant impact on our accounts receivable balance from period to period.As of June 30,2023 and December 31,2022,we had$330 million and$753 million,respectively,of long-term government rebates receivable in Other non-current assets in our conso

91、lidated balance sheets.Financing ReceivablesAs of June 30,2023 and December 31,2022,the majority of our financing receivables were at current status with only immaterial balances being past due.As of June 30,2023,the majority of our financing receivables,excluding MyPower notes receivable,were origi

92、nated in 2023 and 2022,and as of December 31,2022,the majority of our financing receivables,excluding MyPower notes receivable,were originated in 2022.As of June 30,2023 and December 31,2022,the total outstanding balance of MyPower customer notes receivable,net of allowance for expected credit losse

93、s,was$272 million and$280 million,respectively,of which$7 million was due in the next 12 months as of June 30,2023 and December 31,2022.As of June 30,2023 and December 31,2022,the allowance for expected credit losses was$37 million.Concentration of RiskCredit RiskFinancial instruments that potential

94、ly subject us to a concentration of credit risk consist of cash,cash equivalents,investments,restricted cash,accounts receivable and other finance receivables.Our cash and investments balances are primarily comprised of deposits which are diversified among high credit quality financial institutions

95、or invested in U.S.government securities.These deposits are typically in excess of insured limits.As of June 30,2023 and December 31,2022,no entity represented 10%or more of our total receivables balance.Supply RiskWe are dependent on our suppliers,including single source suppliers,and the inability

96、 of these suppliers to deliver necessary components of our products in a timely manner at prices,quality levels and volumes acceptable to us,or our inability to efficiently manage these components from these suppliers,could have a material adverse effect on our business,prospects,financial condition

97、 and operating results.Operating Lease VehiclesThe gross cost of operating lease vehicles as of June 30,2023 and December 31,2022 was$7.13 billion and$6.08 billion,respectively.Operating lease vehicles on the consolidated balance sheets are presented net of accumulated depreciation of$1.19 billion a

98、nd$1.04 billion as of June 30,2023 and December 31,2022,respectively.GoodwillGoodwill increased$69 million within the automotive segment from$194 million as of December 31,2022 to$263 million as of June 30,2023 primarily from a business combination.13 WarrantiesAccrued warranty activity consisted of

99、 the following(in millions):Three Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Accrued warrantybeginning of period$3,965$2,287$3,505$2,101 Warranty costs incurred (296)(187)(576)(338)Net changes in liability for pre-existing warranties,including expirations and foreign exchange

100、impact 188 14 396 17 Provision for warranty 608 319 1,140 653 Accrued warrantyend of period$4,465$2,433$4,465$2,433 Recent Accounting PronouncementsRecently adopted accounting pronouncementsIn October 2021,the Financial Accounting Standards Board(“FASB”)issued Accounting Standards Update(“ASU”)No.20

101、21-08,Accounting for Contract Assets and Contract Liabilities from Contracts with Customers(Topic 805).This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities(deferred revenue)from acquired contracts using the revenue recognition guid

102、ance in Topic 606.At the acquisition date,the acquirer applies the revenue model as if it had originated the acquired contracts.The ASU is effective for annual periods beginning after December 15,2022,including interim periods within those fiscal years.We adopted this ASU prospectively on January 1,

103、2023.This ASU has not and is currently not expected to have a material impact on our consolidated financial statements.In March 2022,the FASB issued ASU 2022-02,Troubled Debt Restructurings and Vintage Disclosures.This ASU eliminates the accounting guidance for troubled debt restructurings by credit

104、ors that have adopted ASU 2016-13,Measurement of Credit Losses on Financial Instruments,which we adopted on January 1,2020.This ASU also enhances the disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty.In addition,

105、the ASU amends the guidance on vintage disclosures to require entities to disclose current period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20.The ASU is effective for annual periods beginning after December 15,2022,in

106、cluding interim periods within those fiscal years.We adopted the ASU prospectively on January 1,2023.This ASU has not and is currently not expected to have a material impact on our consolidated financial statements.On August 16,2022,the Inflation Reduction Act of 2022(“IRA”)was enacted into law and

107、is effective for taxable years beginning after December 31,2022.The IRA includes multiple incentives to promote clean energy,electric vehicles,battery and energy storage manufacture or purchase,in addition to a new corporate alternative minimum tax of 15%on adjusted financial statement income of cor

108、porations with profits greater than$1 billion.Some of these measures are expected to materially affect our consolidated financial statements.For the six months ended June 30,2023,the impact was primarily a reduction of our material costs.We will continue to evaluate the effects of IRA as more guidan

109、ce is issued and the relevant implications to our consolidated financial statements.Note 2 Fair Value of Financial InstrumentsASC 820,Fair Value Measurements(“ASC 820”)states that fair value is an exit price,representing the amount that would be received to sell an asset or paid to transfer a liabil

110、ity in an orderly transaction between market participants.As such,fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.The three-tiered fair value hierarchy,which prioritizes which inputs should

111、be used in measuring fair value,is comprised of:(Level I)observable inputs such as quoted prices in active markets;(Level II)inputs other than quoted prices in active markets that are observable either directly or indirectly and(Level III)unobservable inputs for which there is little or no market da

112、ta.The fair value hierarchy requires the use of observable market data when available in determining fair value.Our assets and liabilities that were measured at fair value on a recurring basis were as follows(in millions):June 30,2023 December 31,2022 Fair Value Level I Level II Level III Fair Value

113、 Level I Level II Level III Money market funds$125$125$2,188$2,188$U.S.government securities 3,811 3,811 894 894 Corporate debt securities 608 608 885 885 Certificates of deposit and time deposits 3,508 3,508 4,253 4,253 Total$8,052$125$7,927$8,220$2,188$6,032$14 All of our money market funds were c

114、lassified within Level I of the fair value hierarchy because they were valued using quoted prices in active markets.Our U.S.government securities,certificates of deposit,time deposits and corporate debt securities are classified within Level II of the fair value hierarchy and the market approach was

115、 used to determine fair value of these investments.Our cash,cash equivalents and investments classified by security type as of June 30,2023 and December 31,2022 consisted of the following(in millions):June 30,2023 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash

116、Equivalents Short-Term Investments Cash$15,023$15,023$15,023$Money market funds 125 125 125 U.S.government securities 3,813 (2)3,811 148 3,663 Corporate debt securities 622 (14)608 608 Certificates of deposit and time deposits 3,511 (3)3,508 3,508 Total cash,cash equivalents and short-term investmen

117、ts$23,094$(19)$23,075$15,296$7,779 December 31,2022 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Cash$13,965$13,965$13,965$Money market funds 2,188 2,188 2,188 U.S.government securities 897 (3)894 894 Corporate debt securiti

118、es 907 (22)885 885 Certificates of deposit and time deposits 4,252 1 4,253 100 4,153 Total cash,cash equivalents and short-term investments$22,209$1$(25)$22,185$16,253$5,932 We record gross realized gains,losses and credit losses as a component of Other income,net in the consolidated statements of o

119、perations.For the three and six months ended June 30,2023 and 2022,we did not recognize any material gross realized gains,losses or credit losses.The ending allowance balances for credit losses were immaterial as of June 30,2023 and December 31,2022.We have determined that the gross unrealized losse

120、s on our investments as of June 30,2023 and December 31,2022 were temporary in nature.The following table summarizes the fair value of our investments by stated contractual maturities as of June 30,2023(in millions):Due in 1 year or less$7,207 Due in 1 year through 5 years 509 Due in 5 years through

121、 10 years 63 Total$7,779 Disclosure of Fair ValuesOur financial instruments that are not re-measured at fair value include accounts receivable,financing receivables,digital assets,accounts payable,accrued liabilities,customer deposits and debt.The carrying values of these financial instruments mater

122、ially approximate their fair values,other than our 2.00%Convertible Senior Notes due in 2024(“2024 Notes”)and digital assets.We estimate the fair value of the 2024 Notes using commonly accepted valuation methodologies and market-based risk measurements that are indirectly observable,such as credit r

123、isk(Level II).In addition,we estimate the fair values of our digital assets based on quoted prices in active markets(Level I).The following table presents the estimated fair values and the carrying values(in millions):June 30,2023 December 31,2022 Carrying Value Fair Value Carrying Value Fair Value

124、2024 Notes$37$474$37$223 Digital assets,net$184$351$184$191 15 Note 3 InventoryOur inventory consisted of the following(in millions):June 30,December 31,2023 2022 Raw materials$5,968$6,137 Work in process 2,202 2,385 Finished goods(1)5,193 3,475 Service parts 993 842 Total$14,356$12,839 (1)Finished

125、goods inventory includes vehicles in transit to fulfill customer orders,new vehicles available for sale,used vehicles and energy products available for sale.We write-down inventory for any excess or obsolete inventories or when we believe that the net realizable value of inventories is less than the

126、 carrying value.During the three and six months ended June 30,2023,we recorded write-downs of$66 million and$105 million,respectively,in Cost of revenues in the consolidated statements of operations.During the three and six months ended June 30,2022,we recorded write-downs of$23 million and$49 milli

127、on,respectively,in Cost of revenues in the consolidated statements of operations.Note 4 Property,Plant and Equipment,NetOur property,plant and equipment,net,consisted of the following(in millions):June 30,December 31,2023 2022 Machinery,equipment,vehicles and office furniture$14,540$13,558 Tooling 2

128、,763 2,579 Leasehold improvements 2,727 2,366 Land and buildings 8,435 7,751 Computer equipment,hardware and software 2,846 2,072 Construction in progress 5,560 4,263 36,871 32,589 Less:Accumulated depreciation (10,482)(9,041)Total$26,389$23,548 Construction in progress is primarily comprised of con

129、struction of Gigafactory Texas,and equipment and tooling related to the manufacturing of our products.Depreciation expense during the three and six months ended June 30,2023 was$816 million and$1.54 billion,respectively.Depreciation expense during the three and six months ended June 30,2022 was$578

130、million and$1.13 billion,respectively.Note 5 Accrued Liabilities and Other Our accrued liabilities and other current liabilities consisted of the following(in millions):June 30,December 31,2023 2022 Accrued purchases(1)$2,830$2,747 Taxes payable(2)1,244 1,235 Payroll and related costs 1,147 1,026 Ac

131、crued warranty reserve,current portion 1,274 1,025 Sales return reserve,current portion 244 270 Operating lease liabilities,current portion 549 485 Other current liabilities 370 354 Total$7,658$7,142 (1)Accrued purchases primarily reflects receipts of goods and services for which we had not yet been

132、 invoiced.As we are invoiced for these goods and services,this balance will reduce and accounts payable will increase.(2)Taxes payable includes value added tax,income tax,sales tax,property tax and use tax payables.16 Note 6 Other Long-Term Liabilities Our other long-term liabilities consisted of th

133、e following(in millions):June 30,December 31,2023 2022 Operating lease liabilities$2,931$2,164 Accrued warranty reserve 3,191 2,480 Other non-current liabilities 802 686 Total other long-term liabilities$6,924$5,330 Note 7 Debt The following is a summary of our debt and finance leases as of June 30,

134、2023(in millions):Unpaid Unused Net Carrying Value Principal Committed Contractual Contractual Current Long-Term Balance Amount(1)Interest Rates Maturity DateRecourse debt:2024 Notes$37$37$2.00%May 2024RCF Credit Agreement 5,000 Not applicable January 2028Solar Bonds 7 7 4.70-5.75%March 2025-January

135、 2031Total recourse debt 37 7 44 5,000 Non-recourse debt:Automotive Asset-backed Notes 945 139 1,089 0.36-2.64%March 2025-September 2025Solar Asset-backed Notes 4 11 15 4.80%December 2026Cash Equity Debt 29 347 386 5.25-5.81%July 2033-January 2035Automotive Lease-backed Credit Facilities 158 Not app

136、licable September 2024Total non-recourse debt 978 497 1,490 158 Total debt 1,015 504$1,534$5,158 Finance leases 444 368 Total debt and finance leases$1,459$872 The following is a summary of our debt and finance leases as of December 31,2022(in millions):Unpaid Unused Net Carrying Value Principal Com

137、mitted Contractual Contractual Current Long-Term Balance Amount(2)Interest Rates Maturity DateRecourse debt:2024 Notes$37$37$2.00%May 2024Credit Agreement 2,266 Not applicable July 2023Solar Bonds 7 7 4.70-5.75%March 2025-January 2031Total recourse debt 44 44 2,266 Non-recourse debt:Automotive Asset

138、-backed Notes 984 613 1,603 0.36-4.64%December 2023-September 2025Solar Asset-backed Notes 4 13 17 4.80%December 2026Cash Equity Debt 28 359 397 5.25-5.81%July 2033-January 2035Automotive Lease-backed Credit Facilities 151 Not applicable September 2024Total non-recourse debt 1,016 985 2,017 151 Tota

139、l debt 1,016 1,029$2,061$2,417 Finance leases 486 568 Total debt and finance leases$1,502$1,597 (1)There are no restrictions on draw-down or use for general corporate purposes with respect to any available committed funds under our credit facilities,except certain specified conditions prior to draw-

140、down,including pledging our leased vehicles and our interests in those leases and as may be described below and in the notes to the consolidated financial statements included in our report on Form 10-K for the year ended December 31,2022.(2)There are no restrictions on draw-down or use for general c

141、orporate purposes with respect to any available committed funds under our credit facilities,except certain specified conditions prior to draw-down,including pledging to our lenders sufficient amounts of qualified receivables,inventories,leased vehicles and our interests in those leases or various ot

142、her assets and as may be described in the notes to the consolidated financial statements included in our report on Form 10-K for the year ended December 31,2022.Recourse debt refers to debt that is recourse to our general assets of the respective guarantors.Non-recourse debt refers to debt that is r

143、ecourse to only assets of our subsidiaries.The differences between the unpaid principal balances and the net carrying values are due to debt discounts or deferred financing costs.As of June 30,2023,we were in material compliance with all financial debt covenants.17 2024 NotesDuring the first two qua

144、rters of 2023,the closing price of our common stock continued to exceed 130%of the applicable conversion price of our 2024 Notes on at least 20 of the last 30 consecutive trading days of the quarter,causing the 2024 Notes to be convertible by their holders during the second and third quarters of 202

145、3.Should the closing price conditions continue to be met in a future quarter for the 2024 Notes,the 2024 Notes will be convertible at their holders option during the immediately following quarter.Note 8 Equity Incentive PlansOther Performance-Based Grants2021 Performance-Based Stock Option&Restricte

146、d Stock Unit(“RSU”)AwardsDuring the fourth quarter of 2021,the Compensation Committee of our Board of Directors granted to certain employees performance-based RSUs and stock options to purchase an aggregate 2.2 million shares of our common stock,as adjusted to give effect to the 2022 Stock Split.As

147、of June 30,2023,we had unrecognized stock-based compensation expense of$140 million,which will be recognized over a weighted-average period of 2.75 years.For the three and six months ended June 30,2023,we recorded$20 million and$45 million,respectively,of stock-based compensation expense related to

148、this grant,net of forfeitures.For the three and six months ended June 30,2022,we recorded$34 million and$103 million,respectively,of stock-based compensation expense related to this grant,net of forfeitures.Summary Stock-Based Compensation InformationThe following table summarizes our stock-based co

149、mpensation expense by line item in the consolidated statements of operations(in millions):Three Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Cost of revenues$181$143$373$274 Research and development 168 122 302 265 Selling,general and administrative 96 96 188 240 Total$445$361$8

150、63$779 Our income tax benefits recognized from stock-based compensation arrangements in each of the periods presented were immaterial due to cumulative losses and valuation allowances.Note 9 Commitments and ContingenciesOperating Lease Arrangements in Buffalo,New York and Shanghai,ChinaFor a descrip

151、tion of our operating lease arrangements in Buffalo,New York,and Shanghai,China,refer to Note 15,Commitments and Contingencies,in our Annual Report on Form 10-K for the year ended December 31,2022.As of June 30,2023,we expect to meet the requirements under these arrangements based on our current and

152、 anticipated level of operations.Legal ProceedingsLitigation Relating to the SolarCity AcquisitionBetween September 1,2016 and October 5,2016,seven lawsuits were filed in the Delaware Court of Chancery by purported stockholders of Tesla challenging our acquisition of SolarCity Corporation(“SolarCity

153、”).Following consolidation,the lawsuit names as defendants the members of Teslas board of directors as then constituted and alleges,among other things,that board members breached their fiduciary duties in connection with the acquisition.The complaint asserts both derivative claims and direct claims

154、on behalf of a purported class and seeks,among other relief,unspecified monetary damages,attorneys fees and costs.On January 22,2020,all of the director defendants except Elon Musk reached a settlement to resolve the lawsuit against them for an amount to be paid entirely under the applicable insuran

155、ce policy.The settlement,which does not involve an admission of any wrongdoing by any party,was approved by the Court on August 17,2020.Tesla received payment of approximately$43 million on September 16,2020,which has been recognized in our consolidated statements of operations as a reduction to Sel

156、ling,general and administrative operating expenses for costs previously incurred related to the acquisition of SolarCity.The trial was held from July 12 to July 23,2021 and on August 16,2021.On October 22,2021,the Court approved the parties joint stipulation that(a)the class is decertified and the a

157、ction shall continue exclusively as a derivative action under Court of Chancery Rule 23.1 and(b)the direct claims against Elon Musk are dismissed with prejudice.Following post-trial briefing,post-trial argument was held on January 18,2022.On April 27,2022,the Court entered judgment in favor of Mr.Mu

158、sk on all counts.On May 26,2022,the plaintiff filed a notice of appeal.Oral argument was held before the Supreme Court of Delaware on March 29,2023,and on June 6,2023,the Supreme Court of Delaware affirmed the Court of Chancerys decision.18 These plaintiffs and others filed parallel actions in the U

159、.S.District Court for the District of Delaware on or about April 21,2017.They include claims for violations of the federal securities laws and breach of fiduciary duties by Teslas board of directors.Those actions have been consolidated and stayed pending the above-referenced Chancery Court litigatio

160、n.Litigation Relating to 2018 CEO Performance AwardOn June 4,2018,a purported Tesla stockholder filed a putative class and derivative action in the Delaware Court of Chancery against Elon Musk and the members of Teslas board of directors as then constituted,alleging corporate waste,unjust enrichment

161、 and that such board members breached their fiduciary duties by approving the stock-based compensation plan awarded to Elon Musk in 2018.The complaint seeks,among other things,monetary damages and rescission or reformation of the stock-based compensation plan.On August 31,2018,defendants filed a mot

162、ion to dismiss the complaint;plaintiff filed its opposition brief on November 1,2018;and defendants filed a reply brief on December 13,2018.The hearing on the motion to dismiss was held on May 9,2019.On September 20,2019,the Court granted the motion to dismiss as to the corporate waste claim but den

163、ied the motion as to the breach of fiduciary duty and unjust enrichment claims.Defendants answer was filed on December 3,2019.On January 25,2021,the Court conditionally certified certain claims and a class of Tesla stockholders as a class action.On September 30,2021,plaintiff filed a motion for leav

164、e to file a verified amended derivative complaint.On October 1,2021,defendants Kimbal Musk and Steve Jurvetson moved for summary judgment as to the claims against them.Following the motion,plaintiff agreed to voluntarily dismiss the claims against Kimbal Musk and Steve Jurvetson.Plaintiff also moved

165、 for summary judgment on October 1,2021.On October 27,2021,the Court approved the parties joint stipulation that,among other things,(a)all claims against Kimbal Musk and Steve Jurvetson in the Complaint are dismissed with prejudice;(b)the class is decertified and the action shall continue exclusivel

166、y as a derivative action under Court of Chancery Rule 23.1;and(c)the direct claims against the remaining defendants are dismissed with prejudice.On November 18,2021,the remaining defendants(a)moved for partial summary judgment,(b)opposed plaintiffs summary judgment motion and(c)opposed the plaintiff

167、s motion to amend his complaint.In January 2022,the case was assigned to a different judge.On February 24,2022,the court(i)granted plaintiffs motion to amend his complaint,and(ii)canceled oral argument on the summary judgment motions,stating that the court is“skeptical that this litigation can be re

168、solved based on the undisputed facts”and the“case is going to trial,”but that the“parties may reassert their arguments made in support of summary judgment in their pre-trial and post-trial briefs.”Trial was held November 14-18,2022.Post-trial briefing and argument are now complete.Litigation Related

169、 to Directors CompensationOn June 17,2020,a purported Tesla stockholder filed a derivative action in the Delaware Court of Chancery,purportedly on behalf of Tesla,against certain of Teslas current and former directors regarding compensation awards granted to Teslas directors,other than Elon Musk,bet

170、ween 2017 and 2020.The suit asserts claims for breach of fiduciary duty and unjust enrichment and seeks declaratory and injunctive relief,unspecified damages and other relief.Defendants filed their answer on September 17,2020.Trial is currently set for November 27,2023,to December 1,2023.On July 14,

171、2023,the parties filed a Stipulation and Agreement of Compromise and Settlement,which does not involve an admission of any wrongdoing by any party.If the settlement is approved by the Court,this action will be fully settled and dismissed with prejudice.Pursuant to the terms of the agreement,Tesla wi

172、ll provide notice of the proposed settlement to stockholders of record as of July 14,2023.The Court will hold a hearing regarding the settlement on October 13,2023.The general terms,conditions and timing of this proposed settlement are further set forth in the Form 8-K filed on July 20,2023,which in

173、cludes,among other things,the court-approved notice of the proposed settlement.The settlement is not expected to have an adverse impact on our results of operations,cash flows or financial position.Litigation Relating to Potential Going Private TransactionBetween August 10,2018 and September 6,2018,

174、nine purported stockholder class actions were filed against Tesla and Elon Musk in connection with Mr.Musks August 7,2018 Twitter post that he was considering taking Tesla private.On January 16,2019,Plaintiffs filed their consolidated complaint in the United States District Court for the Northern Di

175、strict of California and added as defendants the members of Teslas board of directors.The consolidated complaint asserts claims for violations of the federal securities laws and seeks unspecified damages and other relief.The parties stipulated to certification of a class of stockholders,which the co

176、urt granted on November 25,2020.Trial started on January 17,2023,and on February 3,2023,a jury rendered a verdict in favor of the defendants on all counts.After trial,plaintiffs filed a motion for judgment as a matter of law and a motion for new trial,which the Court denied and judgement was entered

177、 in favor of defendants on July 11,2023.19 Between October 17,2018 and March 8,2021,seven derivative lawsuits were filed in the Delaware Court of Chancery,purportedly on behalf of Tesla,against Mr.Musk and the members of Teslas board of directors,as constituted at relevant times,in relation to state

178、ments made and actions connected to a potential going private transaction,with certain of the lawsuits challenging additional Twitter posts by Mr.Musk,among other things.Five of those actions were consolidated,and all seven actions have been stayed pending resolution of the above-referenced consolid

179、ated purported stockholder class action.In addition to these cases,two derivative lawsuits were filed on October 25,2018 and February 11,2019 in the U.S.District Court for the District of Delaware,purportedly on behalf of Tesla,against Mr.Musk and the members of the Tesla board of directors as then

180、constituted.Those cases have also been consolidated and stayed pending the entry of judgment in the above-referenced consolidated purported stockholder class action.On October 21,2022,a lawsuit was filed in the Delaware Court of Chancery by a purported shareholder of Tesla alleging,among other thing

181、s,that board members breached their fiduciary duties in connection with their oversight of the Companys 2018 settlement with the SEC,as amended.Among other things,the plaintiff seeks reforms to the Companys corporate governance and internal procedures,unspecified damages,and attorneys fees.The parti

182、es reached an agreement to stay the case until September 5,2023.On November 15,2021,JPMorgan Chase Bank(“JP Morgan”)filed a lawsuit against Tesla in the Southern District of New York alleging breach of a stock warrant agreement that was entered into as part of a convertible notes offering in 2014.In

183、 2018,JP Morgan informed Tesla that it had adjusted the strike price based upon Mr.Musks August 7,2018 Twitter post that he was considering taking Tesla private.Tesla disputed JP Morgans adjustment as a violation of the parties agreement.In 2021,Tesla delivered shares to JP Morgan per the agreement,

184、which they duly accepted.JP Morgan now alleges that it is owed approximately$162 million as the value of additional shares that it claims should have been delivered as a result of the adjustment to the strike price in 2018.On January 24,2022,Tesla filed multiple counterclaims as part of its answer t

185、o the underlying lawsuit,asserting among other points that JP Morgan should have terminated the stock warrant agreement in 2018 rather than make an adjustment to the strike price that it should have known would lead to a commercially unreasonable result.Tesla believes that the adjustments made by JP

186、 Morgan were neither proper nor commercially reasonable,as required under the stock warrant agreements.JP Morgan filed a motion for judgment on the pleadings,which Tesla opposed,and that motion is currently pending before the Court.Litigation and Investigations Relating to Alleged Discrimination and

187、 HarassmentOn October 4,2021,in a case captioned Diaz v.Tesla,a jury in the Northern District of California returned a verdict against Tesla on claims by a former contingent worker that he was subjected to race discrimination while assigned to work at Teslas Fremont Factory from 2015-2016.On Novembe

188、r 16,2021,Tesla filed a post-trial motion for relief that included a request for a new trial or reduction of the jurys damages.On April 13,2022,the Court granted Teslas motion in part,reducing the total damages and conditionally denied the motion for a new trial subject to the plaintiffs acceptance

189、of the reduced award.On June 21,2022,the plaintiff rejected the reduced award and,as a result,on June 27,2022,the Court ordered a new trial on damages only,which commenced on March 27,2023,after which a jury returned a verdict of$3,175,000.As a result,the damages awarded against Tesla were reduced f

190、rom an initial$136.9 million(October 4,2021)down to$15 million(April 13,2022),and then further down to$3.175 million(April 3,2023).On February 9,2022,shortly after the first Diaz jury verdict,the California Civil Rights Department(”CRD,”formerly“DFEH”)filed a civil complaint against Tesla in Alameda

191、 County,California Superior Court,alleging systemic race discrimination,hostile work environment and pay equity claims,among others.CRDs amended complaint seeks monetary damages and injunctive relief.On September 22,2022,Tesla filed a cross complaint against CRD,alleging that it violated the Adminis

192、trative Procedures Act by failing to follow statutory pre-requisites prior to filing suit and that cross complaint was subject to a sustained demurrer,which Tesla later amended and refiled.The case is now in discovery.Additionally,on June 1,2022 the Equal Employment Opportunity Commission(“EEOC”)iss

193、ued a cause finding against Tesla that closely parallels the CRDs allegations.Tesla engaged in a mandatory mediation with the EEOC in June 2023,which did not result in a resolution.On June 16,2022,two Tesla stockholders filed separate derivative actions in the U.S.District Court for the Western Dist

194、rict of Texas,purportedly on behalf of Tesla,against certain of Teslas current and former directors.Both suits assert claims for breach of fiduciary duty,unjust enrichment,and violation of the federal securities laws in connection with alleged race and gender discrimination and sexual harassment.Amo

195、ng other things,plaintiffs seek declaratory and injunctive relief,unspecified damages payable to Tesla,and attorneys fees.On July 22,2022,the Court consolidated the two cases and on September 6,2022,plaintiffs filed a consolidated complaint.On November 7,2022,the defendants filed a motion to dismiss

196、 the case.Plaintiffs filed a response of January 13,2023,and the defendants replied on February 17,2023.20 Other Litigation Related to Our Products and ServicesWe are also subject to various lawsuits,including proposed class actions,that seek monetary and other injunctive relief.For example,on Septe

197、mber 14,2022,a proposed class action was filed against Tesla,Inc.and related entities in the U.S.District Court for the Northern District of California,alleging various claims about the Companys driver assistance technology systems under state and federal law.This case was later consolidated with se

198、veral other proposed class actions,and a Consolidated Amended Complaint was filed on October 28,2022,which seeks damages and other relief on behalf of all persons who purchased or leased from Tesla between January 1,2016 to the present.On October 5,2022 a proposed class action complaint was filed in

199、 the U.S.District Court for the Eastern District of New York asserting similar state and federal law claims against the same defendants.On March 22,2023,the plaintiffs in the California consolidated action filed a motion for a preliminary injunction to order Tesla to(1)cease using the term“Full Self

200、-Driving Capability”(FSDC),(2)cease the sale and activation of FSDC and deactivate FSDC on Tesla vehicles,and(3)provide certain notices to consumers about proposed court-findings about the accuracy of the use of the terms Autopilot and FSDC.Tesla opposed the motion.On February 27,2023,a proposed cla

201、ss action was filed in the U.S.District Court for the Northern District of California against Tesla,Inc.,Elon Musk and certain current and former Company executives.The complaint alleges that the defendants made material misrepresentations and omissions about the Companys Autopilot and FSDC technolo

202、gies and seeks money damages and other relief on behalf of persons who purchased Tesla stock between February 19,2019 and February 17,2023.On April 13,2023,a putative Tesla shareholder filed a related shareholder derivative complaint against the members of Teslas board of directors and certain curre

203、nt and former executives,alleging contribution for violations of the federal securities law,breach of fiduciary duties,waste,and unjust enrichment.The complaint asserts derivative claims and seeks,among other relief,unspecified monetary damages,attorneys fees and costs.On March 14,2023 a proposed cl

204、ass action was filed in the U.S.District Court for the Northern District of California.Several similar complaints have also been filed in the same court and these cases have now all been consolidated.These complaints allege that Tesla violates federal antitrust and warranty laws through its repair,s

205、ervice,and maintenance practices and seeks,among other relief,damages for persons who paid Tesla for repairs services or Tesla compatible replacement parts from March 2019 to March 2023.On July 17,2023,these plaintiffs filed a consolidated amended complaint.The Company intends to vigorously defend i

206、tself in these matters;however,we cannot predict the outcome or impact.We are unable to reasonably estimate the possible loss or range of loss,if any,associated with these claims,unless noted.Certain Investigations and Other MattersWe receive requests for information from regulators and governmental

207、 authorities,such as the National Highway Traffic Safety Administration,the National Transportation Safety Board,the SEC,the Department of Justice(“DOJ”)and various state,federal,and international agencies.We routinely cooperate with such regulatory and governmental requests,including subpoenas,form

208、al and informal requests and other investigations and inquiries.For example,the SEC had issued subpoenas to Tesla in connection with Elon Musks prior statement that he was considering taking Tesla private.The take-private investigation was resolved and closed with a settlement entered into with the

209、SEC in September 2018 and as further clarified in April 2019 in an amendment.The SEC also has periodically issued subpoenas to us seeking information on our governance processes around compliance with the SEC settlement,as amended.Separately,the company has received requests from the DOJ for documen

210、ts related to Teslas Autopilot and FSD features.To our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred.We cannot predict the outcome or impact of any ongoing matters.Should the government decide to pursue an enforcement action,there exists the p

211、ossibility of a material adverse impact on our business,results of operation,prospects,cash flows and financial position.We are also subject to various other legal proceedings,risks and claims that arise from the normal course of business activities.For example,during the second quarter of 2023,a fo

212、reign news outlet reported that it obtained certain misappropriated data including,purportedly,among other things,non-public Tesla business and personal information.While Teslas investigation remains ongoing,we are working with certain law enforcement and other authorities.If an unfavorable ruling o

213、r development were to occur in this or other possible legal proceedings,risks and claims,there exists the possibility of a material adverse impact on our business,results of operations,prospects,cash flows,financial position or brand.21 Note 10 Variable Interest Entity ArrangementsThe aggregate carr

214、ying values of the variable interest entities assets and liabilities,after elimination of any intercompany transactions and balances,in the consolidated balance sheets were as follows(in millions):June 30,December 31,2023 2022 Assets Current assets Cash and cash equivalents$74$68 Accounts receivable

215、,net 40 22 Prepaid expenses and other current assets 223 274 Total current assets 337 364 Solar energy systems,net 3,969 4,060 Other non-current assets 394 404 Total assets$4,700$4,828 Liabilities Current liabilities Accrued liabilities and other$68$69 Deferred revenue 9 10 Current portion of debt a

216、nd finance leases 975 1,013 Total current liabilities 1,052 1,092 Deferred revenue,net of current portion 147 149 Debt and finance leases,net of current portion 485 971 Other long-term liabilities 2 3 Total liabilities$1,686$2,215 22 Note 11 Segment Reporting and Information about Geographic AreasWe

217、 have two operating and reportable segments:(i)automotive and(ii)energy generation and storage.The following table presents revenues and gross profit by reportable segment(in millions):Three Months Ended June 30,Six Months Ended June 30,2023 2022 2023 2022 Automotive segment Revenues$23,418$16,068$4

218、5,218$34,208 Gross profit$4,255$4,137$8,598$9,669 Energy generation and storage segment Revenues$1,509$866$3,038$1,482 Gross profit$278$97$446$25 The following table presents revenues by geographic area based on the sales location of our products(in millions):Three Months Ended June 30,Six Months En

219、ded June 30,2023 2022 2023 2022 United States$11,332$9,614$22,579$18,348 China 5,731 3,787 10,622 8,437 Other international 7,864 3,533 15,055 8,905 Total$24,927$16,934$48,256$35,690 The following table presents long-lived assets by geographic area(in millions):June 30,December 31,2023 2022 United S

220、tates$23,842$21,667 Germany 4,020 3,547 China 2,796 2,978 Other international 1,096 845 Total$31,754$29,037 The following table presents inventory by reportable segment(in millions):June 30,December 31,2023 2022 Automotive$12,148$10,996 Energy generation and storage 2,208 1,843 Total$14,356$12,839 2

221、3 ITEM 2.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe following discussion and analysis should be read in conjunction with the consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q.OverviewOur missi

222、on is to accelerate the worlds transition to sustainable energy.We design,develop,manufacture,lease and sell high-performance fully electric vehicles,solar energy generation systems and energy storage products.We also offer maintenance,installation,operation,financial and other services related to o

223、ur products.Additionally,we are increasingly focused on products and services based on artificial intelligence,robotics and automation.In 2023,we produced 920,508 consumer vehicles and delivered 889,015 consumer vehicles through the second quarter.We are currently focused on increasing vehicle produ

224、ction,capacity and delivery capabilities,reducing costs,improving and developing our vehicles and battery technologies,improving and further deploying our FSD capabilities,increasing the affordability and efficiency of our vehicles,bringing new products to market and expanding our global infrastruct

225、ure.In 2023,we deployed 7.54 GWh of energy storage products and 133 megawatts of solar energy systems through the second quarter.We are currently focused on ramping production of energy storage products,improving our Solar Roof installation capability and efficiency,and increasing market share of re

226、trofit solar energy systems.During the three and six months ended June 30,2023,we recognized total revenues of$24.93 billion and$48.26 billion,respectively,representing increases of$7.99 billion and$12.57 billion,respectively,over the same periods ended June 30,2022.We continue to ramp production,bu

227、ild new manufacturing capacity,invest in research and development and expand our operations to enable increased deliveries and deployments of our products and further revenue growth.During the three and six months ended June 30,2023,our net income attributable to common stockholders was$2.70 billion

228、 and$5.22 billion,respectively,representing a favorable change of$444 million and an unfavorable change of$361 million,respectively,over the same periods ended June 30,2022.We continue to focus on improving our profitability through production and operational efficiencies.We ended the second quarter

229、 of 2023 with$23.08 billion in cash and cash equivalents and investments,representing an increase of$890 million from the end of 2022.Our cash flows provided by operating activities during the six months ended June 30,2023 and 2022 were$5.58 billion and$6.35 billion,respectively,representing a decre

230、ase of$768 million.Capital expenditures amounted to$4.13 billion during the six months ended June 30,2023,compared to$3.50 billion during the same period ended June 30,2022.Sustained growth has allowed our business to generally fund itself,and we will continue investing in a number of capital-intens

231、ive projects in upcoming periods.Management Opportunities,Challenges and Uncertainties and 2023 OutlookAutomotiveProduction The following is a summary of the status of production of each of our announced vehicle models in production and under development,as of the date of this Quarterly Report on Fo

232、rm 10-Q:Production Location Vehicle Model(s)Production StatusFremont Factory Model S/Model X Active Model 3/Model Y ActiveGigafactory Shanghai Model 3/Model Y ActiveGigafactory Berlin-Brandenburg Model Y ActiveGigafactory Texas Model Y Active Cybertruck Tooling Gigafactory Nevada Tesla Semi Pilot pr

233、oductionVarious Next Generation Platform In developmentTBD Tesla Roadster In development 24 We are focused on growing our manufacturing capacity,which includes capacity for manufacturing new vehicle models such as our Cybertruck and next generation platform,and ramping all of our production vehicles

234、 to their installed production capacities as well as increasing production rate and efficiency at our current factories.The next phase of production growth will depend on the ramp at Gigafactory Berlin-Brandenburg and Gigafactory Texas,as well as our ability to add to our available sources of batter

235、y cell supply by manufacturing our own cells that we are developing to have high-volume output,lower capital and production costs and longer range.Our goals are to improve vehicle performance,decrease production costs and increase affordability and customer awareness.These plans are subject to uncer

236、tainties inherent in establishing and ramping manufacturing operations,which may be exacerbated by new product and manufacturing technologies we introduce,the number of concurrent international projects,any industry-wide component constraints,labor shortages and any future impact from events outside

237、 of our control.Moreover,we have set ambitious technological targets with our plans for battery cells as well as for iterative manufacturing and design improvements for our vehicles with each new factory.AutomotiveDemand,Sales,Deliveries and InfrastructureOur cost reduction efforts,cost innovation s

238、trategies,and additional localized procurement and manufacturing are key to our vehicles affordability and have allowed us to competitively price our vehicles.We will also continue to generate demand and brand awareness by improving our vehicles performance and functionality,including through produc

239、ts based on artificial intelligence such as Autopilot and FSD,and other software features,and delivering new vehicles,such as our upcoming Cybertruck.Moreover,we expect to continue to benefit from ongoing electrification of the automotive sector and increasing environmental regulations and initiativ

240、es.However,we operate in a cyclical industry that is sensitive to political and regulatory uncertainty,including with respect to trade and the environment,all of which can be compounded by inflationary pressures,rising energy prices,increases in interest rates and the liquidity of enterprise custome

241、rs.For example,inflationary pressures have increased across the markets in which we operate.In an effort to curb this trend,central banks in developed countries raised interest rates rapidly and substantially,impacting the affordability of vehicle lease and finance arrangements.Further,sales of vehi

242、cles in the automotive industry also tend to be cyclical in many markets,which may expose us to increased volatility as we expand and adjust our operations.Moreover,as additional competitors enter the marketplace and help bring the world closer to sustainable transportation,we will have to adjust an

243、d continue to execute well to maintain our momentum.These macroeconomic and industry trends have had,and will likely continue to have,an impact on the pricing of,and order rate for our vehicles,and in turn our operating margin.We will continue to adjust accordingly to such developments,and we believ

244、e our ongoing cost reduction,including improved production innovation and efficiency at our newest factories and lower logistics costs,and focus on operating leverage will continue to benefit us in relation to our competitors,while our new products will help enable future growth.As our production in

245、creases,we must work constantly to similarly increase vehicle delivery capability so that it does not become a bottleneck on our total deliveries.We are also committed to reducing the percentage of vehicles delivered in the third month of each quarter,which will help to reduce the cost per vehicle.A

246、s we expand our manufacturing operations globally,we will also have to continue to increase and staff our delivery,servicing and charging infrastructure accordingly,maintain our vehicle reliability and optimize our Supercharger locations to ensure cost effectiveness and customer satisfaction.In part

247、icular,as other automotive manufacturers have announced their adoption of the North American Charging Standard(“NACS”)and agreements with us to utilize our Superchargers,we must correspondingly expand our network in order to ensure adequate availability to meet customer demands.We also remain focuse

248、d on continued enhancements of the capability and efficiency of our servicing operations.Energy Generation and Storage Demand,Production and Deployment The long-term success of this business is dependent upon increasing margins through greater volumes.We continue to increase the production of our en

249、ergy storage products to meet high levels of demand,including the announcement of a new Megafactory in Shanghai.For Megapack,energy storage deployments can vary meaningfully quarter to quarter depending on the timing of specific project milestones.For Powerwall,better availability and growing concer

250、ns over grid stability drive higher customer interest.We remain committed to growing our retrofit solar energy business by offering a low-cost and simplified online ordering experience.In addition,we continue to seek to improve our installation capabilities and price efficiencies for Solar Roof.As t

251、hese product lines grow,we will have to maintain adequate battery cell supply for our energy storage products and ensure the availability of qualified personnel,particularly skilled electricians,to support the ramp of Solar Roof.25 Cash Flow and Capital Expenditure Trends Our capital expenditures ar

252、e typically difficult to project beyond the short-term given the number and breadth of our core projects at any given time,and may further be impacted by uncertainties in future global market conditions.We are simultaneously ramping new products,building or ramping manufacturing facilities on three

253、continents,piloting the development and manufacture of new battery cell technologies,expanding our Supercharger network and investing in autonomy and other artificial intelligence enabled training and products,and the pace of our capital spend may vary depending on overall priority among projects,th

254、e pace at which we meet milestones,production adjustments to and among our various products,increased capital efficiencies and the addition of new projects.Owing and subject to the foregoing as well as the pipeline of announced projects under development,all other continuing infrastructure growth an

255、d varying levels of inflation,we currently expect our capital expenditures to be between$7.00 to$9.00 billion in 2023 and in each of the following two fiscal years.Our business has recently been consistently generating cash flow from operations in excess of our level of capital spend,and with better

256、 working capital management resulting in shorter days sales outstanding than days payable outstanding,our sales growth is also facilitating positive cash generation.We have and will continue to utilize such cash flows,among other things,to do more vertical integration,expand our product roadmap and

257、provide financing options to our customers.At the same time,we are likely to see heightened levels of capital expenditures during certain periods depending on the specific pace of our capital-intensive projects and other potential variables such as rising material prices and increases in supply chai

258、n and labor expenses resulting from changes in global trade conditions and labor availability.Overall,we expect our ability to be self-funding to continue as long as macroeconomic factors support current trends in our sales.Critical Accounting Policies and EstimatesFor a description of our critical

259、accounting policies and estimates,refer to Part II,Item 7,Critical Accounting Policies and Estimates in our Annual Report on Form 10-K for the year ended December 31,2022.There have been no material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for th

260、e year ended December 31,2022.Recent Accounting PronouncementsSee Note 1,Summary of Significant Accounting Policies,to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.Results of Operations Revenues Three Months Ended June 30,Change Six Months Ended June

261、 30,Change(Dollars in millions)2023 2022$%2023 2022$%Automotive sales$20,419$13,670$6,749 49%$39,297$29,184$10,113 35%Automotive regulatory credits 282 344 (62)(18)%803 1,023 (220)(22)%Automotive leasing 567 588 (21)(4)%1,131 1,256 (125)(10)%Total automotive revenues 21,268 14,602 6,666 46%41,231 31

262、,463 9,768 31%Services and other 2,150 1,466 684 47%3,987 2,745 1,242 45%Total automotive&services and other segment revenue 23,418 16,068 7,350 46%45,218 34,208 11,010 32%Energy generation and storage segment revenue 1,509 866 643 74%3,038 1,482 1,556 105%Total revenues$24,927$16,934$7,993 47%$48,2

263、56$35,690$12,566 35%26 Automotive&Services and Other SegmentAutomotive sales revenue increased$6.75 billion,or 49%,in the three months ended June 30,2023 as compared to the three months ended June 30,2022,primarily due to increases of 196,382 combined Model 3 and Model Y cash deliveries and 3,395 co

264、mbined Model S and Model X cash deliveries year over year despite a negative impact from the United States dollar strengthening against other foreign currencies in the three months ended June 30,2023 compared to the prior period.This was achieved from production ramping of Model Y globally.The incre

265、ases were partially offset by lower average selling price on our vehicles driven by overall price reductions year over year.Automotive sales revenue increased$10.11 billion,or 35%,in the six months ended June 30,2023 as compared to the six months ended June 30,2022,primarily due to an increase of 30

266、4,760 combined Model 3 and Model Y cash deliveries year over year despite a negative impact from the United States dollar strengthening against other foreign currencies in the six months ended June 30,2023 as compared to the prior period.This was achieved from production ramping and partially offset

267、 by lower average selling price on our vehicles as mentioned above.Automotive regulatory credits revenue decreased$62 million,or 18%,in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Automotive regulatory credits revenue decreased$220 million,or 22%,in the six

268、 months ended June 30,2023 as compared to the six months ended June 30,2022,primarily due to the recognition of$288 million in revenue in the first quarter of 2022 primarily due to changes in regulation which entitled us to additional consideration for credits sold previously.Automotive leasing reve

269、nue decreased$21 million,or 4%,in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Automotive leasing revenue decreased$125 million,or 10%,in the six months ended June 30,2023 as compared to the six months ended June 30,2022.The decreases were primarily due to a

270、 decrease in direct sales-type leasing revenue driven by lower deliveries year over year,partially offset by an increase from our growing direct operating lease portfolio.Services and other revenue increased$684 million,or 47%,in the three months ended June 30,2023 as compared to the three months en

271、ded June 30,2022.Services and other revenue increased$1.24 billion,or 45%,in the six months ended June 30,2023 as compared to the six months ended June 30,2022.The increases were primarily due to an increase in used vehicle revenue driven by increases in volume,non-warranty maintenance services reve

272、nue as our fleet continues to grow,paid Supercharging revenue,insurance services revenue and retail merchandise revenue,partially offset by decreases in average selling price of used Tesla and non-Tesla vehicles.Energy Generation and Storage SegmentEnergy generation and storage revenue increased$643

273、 million,or 74%,in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Energy generation and storage revenue increased$1.56 billion,or 105%,in the six months ended June 30,2023 as compared to the six months ended June 30,2022.The increases were primarily due to an

274、increase in deployments of Megapack at a lower average selling price.27 Cost of Revenues and Gross Margin Three Months Ended June 30,Change Six Months Ended June 30,Change(Dollars in millions)2023 2022$%2023 2022$%Cost of revenues Automotive sales$16,841$10,153$6,688 66%$32,263$21,067$11,196 53%Auto

275、motive leasing 338 368 (30)(8)%671 776 (105)(14)%Total automotive cost of revenues 17,179 10,521 6,658 63%32,934 21,843 11,091 51%Services and other 1,984 1,410 574 41%3,686 2,696 990 37%Total automotive&services and other segment cost of revenues 19,163 11,931 7,232 61%36,620 24,539 12,081 49%Energ

276、y generation and storage segment 1,231 769 462 60%2,592 1,457 1,135 78%Total cost of revenues$20,394$12,700$7,694 61%$39,212$25,996$13,216 51%Gross profit total automotive$4,089$4,081$8,297$9,620 Gross margin total automotive 19.2%27.9%20.1%30.6%Gross profit total automotive&services and other segme

277、nt$4,255$4,137$8,598$9,669 Gross margin total automotive&services and other segment 18.2%25.7%19.0%28.3%Gross profit energy generation and storage segment$278$97$446$25 Gross margin energy generation and storage segment 18.4%11.2%14.7%1.7%Total gross profit$4,533$4,234$9,044$9,694 Total gross margin

278、 18.2%25.0%18.7%27.2%Automotive&Services and Other SegmentCost of automotive sales revenue increased$6.69 billion,or 66%,in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Cost of automotive sales revenue increased$11.20 billion,or 53%,in the six months ended J

279、une 30,2023 as compared to the six months ended June 30,2022.Cost of automotive sales revenue increased in line with the growth in deliveries year over year,as discussed above.The increase was partially offset by a decrease in the average combined cost per unit of our vehicles primarily due to decre

280、ase in material costs,lower manufacturing costs from better fixed cost absorption offset by higher outbound freight and duties.Our costs of revenue were also positively impacted by the IRA manufacturing credits earned during the current periods and by the United States dollar strengthening against o

281、ur foreign currencies as compared to the prior periods.Cost of automotive leasing revenue decreased$30 million,or 8%,in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Cost of automotive leasing revenue decreased$105 million,or 14%,in the six months ended June

282、30,2023 as compared to the six months ended June 30,2022.The decreases were primarily due to a decrease in direct sales-type leasing cost of revenue driven by lower deliveries year over year.Cost of services and other revenue increased$574 million,or 41%,in the three months ended June 30,2023 as com

283、pared to the three months ended June 30,2022.Cost of services and other revenue increased$990 million,or 37%,in the six months ended June 30,2023 as compared to the six months ended June 30,2022.The increases were in line with the changes in services and other revenue as discussed above.Gross margin

284、 for total automotive decreased from 27.9%to 19.2%in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Gross margin for total automotive decreased from 30.6%to 20.1%in the six months ended June 30,2023 as compared to the six months ended June 30,2022.The decrease

285、s were primarily due to lower average selling price on our vehicles,margin headwinds from underutilization of new factories,and a decrease in regulatory credits revenue,partially offset by the overall favorable change in our average combined cost per unit of our vehicles as discussed above.Gross mar

286、gin for total automotive&services and other segment decreased from 25.7%to 18.2%in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Gross margin for total automotive&services and other segment decreased from 28.3%to 19.0%in the six months ended June 30,2023 as c

287、ompared to the six months ended June 30,2022,primarily due to the automotive gross margin decrease discussed above,partially offset by an improvement in our services and other gross margin.Additionally,there was a higher proportion of services and other,which operated at a lower gross margin,within

288、the segment during the first half of 2023 as compared to the prior year.28 Energy Generation and Storage SegmentCost of energy generation and storage revenue increased$462 million,or 60%,in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Cost of energy generati

289、on and storage revenue increased$1.14 billion,or 78%,in the six months ended June 30,2023 as compared to the six months ended June 30,2022,in line with the changes in Megapack deployments year over year,as discussed above.These increases were partially offset by improvements in production ramping th

290、at drove down the average cost per MWh of Megapack.Gross margin for energy generation and storage improved from 11.2%to 18.4%in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Gross margin for energy generation and storage improved from 1.7%to 14.7%in the six m

291、onths ended June 30,2023 as compared to the six months ended June 30,2022.The increases were driven by the changes in Megapack revenue and cost per MWh as described above.Research and Development Expense Three Months Ended June 30,Change Six Months Ended June 30,Change(Dollars in millions)2023 2022$

292、%2023 2022$%Research and development$943$667$276 41%$1,714$1,532$182 12%As a percentage of revenues 4%4%4%4%Research and development(“R&D”)expenses increased$276 million,or 41%,in the three months ended June 30,2023 as compared to the three months ended June 30,2022.R&D expenses increased$182 millio

293、n,or 12%,in the six months ended June 30,2023 as compared to the six months ended June 30,2022.The overall increases were primarily driven by additional costs in the current period related to the pre-production phase for Cybertruck,AI and other programs.R&D expenses as a percentage of revenue stayed

294、 consistent at 4%in the three and six months ended June 30,2023 compared to the same periods in the prior year.Our R&D expenses have increased proportionately with total revenues as we continue to expand our product roadmap and technologies.Selling,General and Administrative Expense Three Months End

295、ed June 30,Change Six Months Ended June 30,Change(Dollars in millions)2023 2022$%2023 2022$%Selling,general and administrative$1,191$961$230 24%$2,267$1,953$314 16%As a percentage of revenues 5%6%5%5%Selling,general and administrative(“SG&A”)expenses increased$230 million,or 24%,in the three months

296、ended June 30,2023 as compared to the three months ended June 30,2022.This was driven by a$135 million increase in employee and labor costs primarily from increased headcount,including professional services and an$81 million increase in facilities related expenses.SG&A expenses increased$314 million

297、,or 16%,in the six months ended June 30,2023 as compared to the six months ended June 30,2022.This was driven by a$183 million increase in employee and labor costs primarily from increased headcount,including professional services and a$166 million increase in facilities related expenses.The increas

298、es were partially offset by a decrease of$52 million in stock-based compensation expense,primarily attributable to the lower stock-based compensation expense on the 2018 CEO Performance Award which was fully expensed as of December 31,2022.Restructuring and Other Three Months Ended June 30,Change Si

299、x Months Ended June 30,Change(Dollars in millions)2023 2022$%2023 2022$%Restructuring and other$142$(142)(100)%$142$(142)(100)%During the three months ended June 30,2022,we recorded impairment loss of$170 million as well as realized gains of$64 million in connection with converting our holdings of d

300、igital assets into fiat currency.We also recorded other expenses of$36 million related to employee terminations during the three months ended June 30,2022.29 Interest Income Three Months Ended June 30,Change Six Months Ended June 30,Change(Dollars in millions)2023 2022$%2023 2022$%Interest income$23

301、8$26$212 815%$451$54$397 735%Interest income increased$212 million,or 815%,in the three months ended June 30,2023 and increased$397 million,or 735%,in the six months ended June 30,2023 as compared to the three and six months ended June 30,2022,respectively.This increase was primarily due to higher i

302、nterest earned on our cash and cash equivalents and short-term investments in the three and six months ended June 30,2023 as compared to the prior periods.This was driven by an increase in our short-term investments balance and rising interest rates.Other(Expense)Income,Net Three Months Ended June 3

303、0,Change Six Months Ended June 30,Change(Dollars in millions)2023 2022$%2023 2022$%Other income,net$328$28$300 1071%$280$84$196 233%Other income,net,changed favorably by$300 million in the three months ended June 30,2023 as compared to the three months ended June 30,2022.Other income,net,changed fav

304、orably by$196 million in the six months ended June 30,2023 as compared to the six months ended June 30,2022.The favorable changes were primarily due to fluctuations in foreign currency exchange rates on our intercompany balances.Provision for Income Taxes Three Months Ended June 30,Change Six Months

305、 Ended June 30,Change(Dollars in millions)2023 2022$%2023 2022$%Provision for income taxes$323$205$118 58%$584$551$33 6%Effective tax rate 11%8%10%9%Our provision for income taxes increased by$118 million,or 58%,in the three months ended June 30,2023 and increased by$33 million,or 6%,in the six mont

306、hs ended June 30,2023 as compared to the three months ended June 30,2022 and six months ended June 30,2022,respectively,primarily due to the change in our pre-tax income year over year and changes in mix of jurisdictional earnings.Our effective tax rate increased from 8%to 11%in the three months end

307、ed June 30,2023 and increased from 9%to 10%in the six months ended June 30,2023 as compared to the three and six months ended June 30,2022,respectively,primarily due to changes in mix of jurisdictional earnings.See Note 1,Summary of Significant Accounting Policies,to the consolidated financial state

308、ments included elsewhere in this Quarterly Report on Form 10-Q for further details.30 Liquidity and Capital ResourcesWe expect to continue to generate net positive operating cash flow as we have done in the last four fiscal years.The cash we generate from our core operations enables us to fund ongoi

309、ng operations and production,our research and development projects for new products and technologies including our proprietary battery cells,additional manufacturing ramps at existing manufacturing facilities such as the Fremont Factory,Gigafactory Nevada,Gigafactory Shanghai and Gigafactory New Yor

310、k,the ramp of Gigafactory Berlin-Brandenburg and Gigafactory Texas,the construction of future factories,and the continued expansion of our retail and service locations,body shops,Mobile Service fleet,Supercharger,including to support NACS,energy product installation capabilities and autonomy and oth

311、er artificial intelligence enabled products.In addition,because a large portion of our future expenditures will be to fund our growth,we expect that if needed we will be able to adjust our capital and operating expenditures by operating segment.For example,if our near-term manufacturing operations d

312、ecrease in scale or ramp more slowly than expected,including due to global economic or business conditions,we may choose to correspondingly slow the pace of our capital expenditures.Finally,we continually evaluate our cash needs and may decide it is best to raise additional capital or seek alternati

313、ve financing sources to fund the rapid growth of our business,including through drawdowns on existing or new debt facilities or financing funds.Conversely,we may also from time to time determine that it is in our best interests to voluntarily repay certain indebtedness early.Accordingly,we believe t

314、hat our current sources of funds will provide us with adequate liquidity during the 12-month period following June 30,2023,as well as in the long-term.See the sections below for more details regarding the material requirements for cash in our business and our sources of liquidity to meet such needs.

315、Material Cash RequirementsFrom time to time in the ordinary course of business,we enter into agreements with vendors for the purchase of components and raw materials to be used in the manufacture of our products.However,due to contractual terms,variability in the precise growth curves of our develop

316、ment and production ramps,and opportunities to renegotiate pricing,we generally do not have binding and enforceable purchase orders under such contracts beyond the short-term,and the timing and magnitude of purchase orders beyond such period is difficult to accurately project.As discussed in and sub

317、ject to the considerations referenced in Part I,Item 2,Managements Discussion and Analysis of Financial Condition and Results of OperationsManagement Opportunities,Challenges and Uncertainties and 2023 OutlookCash Flow and Capital Expenditure Trends in this Quarterly Report on Form 10-Q,we currently

318、 expect our capital expenditures to support our projects globally to be between$7.00 to$9.00 billion in 2023 and in each of the following two fiscal years.We also have certain obligations in connection with our operations at Gigafactory New York and Gigafactory Shanghai,as outlined in Part II,Item 7

319、,Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesMaterial Cash Requirements in our Annual Report on Form 10-K for the year ended December 31,2022.As of June 30,2023,we and our subsidiaries had outstanding$1.53 billion in aggregate pr

320、incipal amount of indebtedness,of which$1.02 billion is scheduled to become due in the succeeding 12 months.For details regarding our indebtedness,refer to Note 7,Debt,to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.Sources and Conditions of Liquidit

321、yOur sources to fund our material cash requirements are predominantly from our deliveries and servicing of new and used vehicles,sales and installations of our energy storage products and solar energy systems,proceeds from debt facilities and proceeds from equity offerings,when applicable.As of June

322、 30,2023,we had$15.30 billion and$7.78 billion of cash and cash equivalents and short-term investments,respectively.Balances held in foreign currencies had a U.S.dollar equivalent of$3.85 billion and consisted primarily of Chinese yuan,euros and Canadian dollar.We had$5.16 billion of unused committe

323、d amounts under our credit facilities as of June 30,2023.Certain of such unused committed amounts are subject to satisfying specified conditions prior to draw-down(such as pledging to leased vehicles and our interests in those leases).For details regarding our indebtedness,refer to Note 7,Debt,to th

324、e consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.We continue adapting our strategy to meet our liquidity and risk objectives,such as investing in U.S.government and other investments,to do more vertical integration,expand our product roadmap and provide fi

325、nancing options to our customers.31 Summary of Cash Flows Six Months Ended June 30,(Dollars in millions)2023 2022 Net cash provided by operating activities$5,578$6,346 Net cash used in investing activities$(6,018)$(3,051)Net cash used in financing activities$(561)$(2,320)Cash Flows from Operating Ac

326、tivitiesNet cash provided by operating activities decreased by$768 million to$5.58 billion during the six months ended June 30,2023 from$6.35 billion during the six months ended June 30,2022.This decrease was primarily due to unfavorable changes in net operating assets and liabilities of$683 million

327、 and the decrease in net income excluding non-cash expenses,gains and losses of$85 million.Cash Flows from Investing ActivitiesCash flows from investing activities and their variability across each period related primarily to capital expenditures,which were$4.13 billion for the six months ended June

328、 30,2023 and$3.50 billion for the six months ended June 30,2022,mainly for the expansions of Gigafactory Texas,Gigafactory Berlin-Brandenburg,Gigafactory Shanghai and the Fremont Factory.We also purchased$1.81 billion and$476 million of investments,net of proceeds from maturities and sales,for the s

329、ix months ended June 30,2023 and June 30,2022,respectively.Cash Flows from Financing ActivitiesNet cash used in financing activities decreased by$1.76 billion to$561 million during the six months ended June 30,2023 from$2.32 billion during the six months ended June 30,2022.The decrease was primarily

330、 due to a$1.68 billion decrease in repayments of convertible and other debt.See Note 7,Debt,to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details regarding our debt obligations.ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKE

331、T RISKForeign Currency RiskWe transact business globally in multiple currencies and hence have foreign currency risks related to our revenue,costs of revenue and operating expenses denominated in currencies other than the U.S.dollar(primarily the Chinese yuan,euro,Canadian dollar and Australian doll

332、ar in relation to our current year operations).In general,we are a net receiver of currencies other than the U.S.dollar for our foreign subsidiaries.Accordingly,changes in exchange rates affect our revenue and other operating results as expressed in U.S.dollars as we do not typically hedge foreign c

333、urrency risk.We have also experienced,and will continue to experience,fluctuations in our net income as a result of gains(losses)on the settlement and the re-measurement of monetary assets and liabilities denominated in currencies that are not the local currency(primarily consisting of our intercompany and cash and cash equivalents balances).We considered the historical trends in foreign currency