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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Mark One)xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 31,2025ORoTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT

2、OF 1934For the transition period from _ to _Commission File Number:001-34756Tesla,Inc.(Exact name of registrant as specified in its charter)Texas91-2197729(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification No.)1 Tesla RoadAustin,Texas78725(Address of principal

3、 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 MarketIndicate by check mark whe

4、ther 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 filingrequireme

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

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

7、r reporting company”and“emerging growth company”in Rule 12b-2 of theExchange Act:Large accelerated filerxAccelerated fileroNon-accelerated fileroSmaller reporting companyoEmerging growth companyoIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extende

8、d transition period for complying with any new or revised financialaccounting standards provided pursuant to Section 13(a)of the Exchange Act.oIndicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes o No xAs of April 16,2025,there were 3,220

9、,956,211 shares of the registrants common stock outstanding.TESLA,INC.FORM 10-Q FOR THE QUARTER ENDED MARCH 31,2025INDEX PagePART I.FINANCIAL INFORMATIONItem 1.Financial Statements4Consolidated Balance Sheets4Consolidated Statements of Operations5Consolidated Statements of Comprehensive Income6Conso

10、lidated Statements of Redeemable Noncontrolling Interests and Equity7Consolidated Statements of Cash Flows8Notes to Consolidated Financial Statements9Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations25Item 3.Quantitative and Qualitative Disclosures about Mar

11、ket Risk33Item 4.Controls and Procedures33PART II.OTHER INFORMATIONItem 1.Legal Proceedings34Item 1A.Risk Factors34Item 2.Unregistered Sales of Equity Securities and Use of Proceeds34Item 3.Defaults Upon Senior Securities35Item 4.Mine Safety Disclosures35Item 5.Other Information35Item 6.Exhibits35 S

12、ignatures361Table of ContentsForward-Looking StatementsThe discussions in this Annual Report on Form 10-Q contain forward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995.Forward-looking statements are based on assumptions with respect to the future and ma

13、nagements currentexpectations,involve certain risks and uncertainties and are not guarantees.These forward-looking statements include,but are notlimited to,statements concerning supply chain constraints,our strategy,competition,future operations and production capacity,futurefinancial position,futur

14、e revenues,projected costs,profitability,expected cost reductions,capital adequacy,expectations regardingdemand and acceptance for our technologies,growth opportunities and trends in the markets in which we operate,prospects and plansand objectives of management.The words“anticipates,”“believes,”“co

15、uld,”“estimates,”“expects,”“intends,”“may,”“plans,”“projects,”“will,”“would,”“predicts”and similar expressions are intended to identify forward-looking statements,although not allforward-looking statements contain these identifying words.We may not actually achieve the plans,intentions or expectatio

16、ns disclosed inour forward-looking statements and you should not place undue reliance on our forward-looking statements.Future results may differmaterially from the plans,intentions and expectations disclosed in the forward-looking statements that we make.These forward-lookingstatements involve risk

17、s and uncertainties that could cause our actual results to differ materially from those in the forward-lookingstatements,including,without limitation,the risks set forth in Part I,Item 1A,“Risk Factors”of the Annual Report on Form 10-K for thefiscal year ended December 31,2024 and that are otherwise

18、 described or updated from time to time in our other filings with the Securitiesand Exchange Commission(the“SEC”).The discussion of such risks is not an indication that any such risks have occurred at the time ofthis filing.We do not assume any obligation to update any forward-looking statements.Tab

19、le of ContentsPART I.FINANCIAL INFORMATIONITEM 1.FINANCIAL STATEMENTSTesla,Inc.Consolidated Balance Sheets(in millions,except per share data)(unaudited)March 31,2025December 31,2024AssetsCurrent assetsCash and cash equivalents$16,352$16,139 Short-term investments20,644 20,424 Accounts receivable,net

20、3,782 4,418 Inventory13,706 12,017 Prepaid expenses and other current assets4,905 5,362 Total current assets59,389 58,360 Operating lease vehicles,net5,477 5,581 Solar energy systems,net4,855 4,924 Property,plant and equipment,net37,088 35,836 Operating lease right-of-use assets5,330 5,160 Digital a

21、ssets,net951 1,076 Intangible assets,net144 150 Goodwill248 244 Deferred tax assets6,687 6,524 Other non-current assets4,942 4,215 Total assets$125,111$122,070 LiabilitiesCurrent liabilitiesAccounts payable$13,471$12,474 Accrued liabilities and other10,802 10,723 Deferred revenue3,243 3,168 Current

22、portion of debt and finance leases2,237 2,456 Total current liabilities29,753 28,821 Debt and finance leases,net of current portion5,292 5,757 Deferred revenue,net of current portion3,610 3,317 Other long-term liabilities11,038 10,495 Total liabilities49,693 48,390 Commitments and contingencies(Note

23、 10)Redeemable noncontrolling interests in subsidiaries62 63 EquityStockholders equityPreferred stock;$0.001 par value;100 shares authorized;no shares issued and outstanding Common stock;$0.001 par value;6,000 shares authorized;3,220 and 3,216 shares issued and outstandingas of March 31,2025 and Dec

24、ember 31,2024,respectively3 3 Additional paid-in capital39,456 38,371 Accumulated other comprehensive loss(424)(670)Retained earnings35,618 35,209 Total stockholders equity74,653 72,913 Noncontrolling interests in subsidiaries703 704 Total liabilities and equity$125,111$122,070 The accompanying note

25、s are an integral part of these consolidated financial statements.4Table of ContentsTesla,Inc.Consolidated Statements of Operations(in millions,except per share data)(unaudited)Three Months Ended March 31,20252024RevenuesAutomotive sales$12,925$16,460 Automotive regulatory credits595 442 Automotive

26、leasing447 476 Total automotive revenues13,967 17,378 Energy generation and storage2,730 1,635 Services and other2,638 2,288 Total revenues19,335 21,301 Cost of revenuesAutomotive sales11,461 13,897 Automotive leasing239 269 Total automotive cost of revenues11,700 14,166 Energy generation and storag

27、e1,945 1,232 Services and other2,537 2,207 Total cost of revenues16,182 17,605 Gross profit3,153 3,696 Operating expensesResearch and development1,409 1,151 Selling,general and administrative1,251 1,374 Restructuring and other94 Total operating expenses2,754 2,525 Income from operations399 1,171 Int

28、erest income400 350 Interest expense(91)(76)Other(expense)income,net(119)443 Income before income taxes589 1,888 Provision for income taxes169 483 Net income420 1,405 Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries11 15 Net income attributa

29、ble to common stockholders$409$1,390 Net income per share of common stock attributable to common stockholdersBasic$0.13$0.45 Diluted$0.12$0.41 Weighted average shares used in computing net income per share of common stockBasic3,2183,186Diluted3,5213,484 The accompanying notes are an integral part of

30、 these consolidated financial statements.5Table of ContentsTesla,Inc.Consolidated Statements of Comprehensive Income(in millions)(unaudited)Three Months Ended March 31,20252024Net income$420$1,405 Other comprehensive income(loss):Foreign currency translation adjustment251(252)Unrealized net loss on

31、investments,net of tax(5)(4)Total other comprehensive income(loss):246(256)Comprehensive income666 1,149 Less:Comprehensive income attributable to noncontrolling interests and redeemablenoncontrolling interests in subsidiaries11 15 Comprehensive income attributable to common stockholders$655$1,134 T

32、he accompanying notes are an integral part of these consolidated financial statements.6Table of ContentsTesla,Inc.Consolidated Statements of Redeemable Noncontrolling Interests and Equity(in millions)(unaudited)Three Months EndedMarch 31,2025RedeemableNoncontrollingInterestsCommon StockAdditionalPai

33、d-InCapitalAccumulatedOtherComprehensiveLossRetainedEarningsTotalStockholdersEquityNoncontrollingInterests inSubsidiariesTotalEquitySharesAmountBalance as ofDecember 31,2024$63 3,216$3$38,371$(670)$35,209$72,913$704$73,617 Issuance of commonstock for equityincentive awards 4 313 313 313 Stock-basedc

34、ompensation 662 662 662 Distributions tononcontrolling interests(2)(11)(11)Shareholder settlement,net 110 110 110 Net income1 409 409 10 419 Other comprehensiveincome 246 246 246 Balance as of March31,2025$62 3,220$3$39,456$(424)$35,618$74,653$703$75,356 Three Months EndedMarch 31,2024RedeemableNonc

35、ontrollingInterestsCommon StockAdditionalPaid-InCapitalAccumulatedOtherComprehensiveLossRetainedEarningsTotalStockholdersEquityNoncontrollingInterests inSubsidiariesTotalEquitySharesAmountBalance as ofDecember 31,2023$242 3,185$3$34,892$(143)$27,882$62,634$733$63,367 Adjustments for priorperiods fro

36、madopting ASU 2023-08,net of tax 236 236 236 Issuance of commonstock for equityincentive awards 4 251 251 251 Stock-basedcompensation 578 578 578 Distributions tononcontrolling interests(6)(16)(16)Buy-outs ofnoncontrolling interests(166)42 42 42 Net income3 1,390 1,390 12 1,402 Other comprehensivelo

37、ss (256)(256)(256)Balance as of March31,2024$73 3,189$3$35,763$(399)$29,508$64,875$729$65,604 The accompanying notes are an integral part of these consolidated financial statements.7Table of ContentsTesla,Inc.Consolidated Statements of Cash Flows(in millions)(unaudited)Three Months Ended March 31,20

38、252024Cash Flows from Operating ActivitiesNet income$420$1,405 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation,amortization and impairment1,447 1,246 Stock-based compensation573 524 Inventory and purchase commitments write-downs112 68 Foreign currency tr

39、ansaction net unrealized loss(gain)30(63)Deferred income taxes(43)63 Non-cash interest and other operating activities46(5)Digital assets loss(gain),net125(335)Changes in operating assets and liabilities:Accounts receivable630(422)Inventory(1,704)(2,697)Operating lease vehicles(76)(12)Prepaid expense

40、s and other assets(419)(972)Accounts payable,accrued and other liabilities706 1,247 Deferred revenue309 195 Net cash provided by operating activities2,156 242 Cash Flows from Investing ActivitiesPurchases of property and equipment excluding finance leases,net of sales(1,492)(2,777)Purchases of inves

41、tments(6,015)(6,622)Proceeds from maturities of investments5,856 4,315 Net cash used in investing activities(1,651)(5,084)Cash Flows from Financing ActivitiesProceeds from issuances of debt625 776 Repayments of debt(1,301)(591)Proceeds from exercises of stock options and other stock issuances313 251

42、 Principal payments on finance leases(48)(106)Proceeds received from directors in shareholder settlement277 Payment of legal fees associated with shareholder settlement(176)Debt issuance costs(3)Distributions paid to noncontrolling interests in subsidiaries(22)(30)Payments for buy-outs of noncontrol

43、ling interests in subsidiaries(101)Net cash(used in)provided by financing activities(332)196 Effect of exchange rate changes on cash and cash equivalents and restricted cash40(79)Net increase(decrease)in cash and cash equivalents and restricted cash213(4,725)Cash and cash equivalents and restricted

44、cash,beginning of period17,037 17,189 Cash and cash equivalents and restricted cash,end of period$17,250$12,464 Supplemental Non-Cash Investing and Financing ActivitiesAcquisitions of property and equipment included in liabilities$1,581$1,431 Leased assets obtained in exchange for finance lease liab

45、ilities$20 Leased assets obtained in exchange for operating lease liabilities$342$406 The accompanying notes are an integral part of these consolidated financial statements.8Table of ContentsTesla,Inc.Notes to Consolidated Financial Statements(unaudited)Note 1 Summary of Significant Accounting Polic

46、iesUnaudited Interim Financial StatementsThe consolidated financial statements of Tesla,Inc.(“Tesla”,the“Company”,“we”,“us”or“our”),including the consolidatedbalance sheet as of March 31,2025,the consolidated statements of operations,the consolidated statements of comprehensive income,theconsolidate

47、d statements of redeemable noncontrolling interests and equity,and the consolidated statements of cash flows for the threemonths ended March 31,2025 and 2024,as well as other information disclosed in the accompanying notes,are unaudited.Theconsolidated balance sheet as of December 31,2024 was derive

48、d from the audited consolidated financial statements as of that date.Theinterim consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidatedfinancial statements and the accompanying notes contained in our Annual Report on Form 10-K for the y

49、ear ended December 31,2024.The interim consolidated financial statements and the accompanying notes have been prepared on the same basis as the annualconsolidated financial statements and,in the opinion of management,reflect all adjustments,which include only normal recurringadjustments,necessary fo

50、r a fair statement of the results of operations for the periods presented.The consolidated results of operations forany interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interimperiods.ReclassificationsCertain prior period

51、balances have been reclassified to conform to the current period presentation in the consolidated financialstatements and the accompanying notes.Revenue RecognitionRevenue by sourceThe following table disaggregates our revenue by major source(in millions):Three Months Ended March 31,20252024Automoti

52、ve sales$12,925$16,460 Automotive regulatory credits595 442 Energy generation and storage sales2,621 1,522 Services and other2,638 2,288 Total revenues from sales and services18,779 20,712 Automotive leasing447 476 Energy generation and storage leasing109 113 Total revenues$19,335$21,301 Automotive

53、SegmentAutomotive SalesDeferred revenue related to the access to our Full Self Driving(“FSD”)(Supervised)features and their ongoing maintenance,internet connectivity,free Supercharging programs and over-the-air software updates primarily on automotive sales amounted to$3.60billion as of March 31,202

54、5 and December 31,2024.9Table of ContentsDeferred revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied,orpartially unsatisfied,as of the balance sheet date.Revenue recognized from the deferred revenue balances as of December 31,2024 and20

55、23 was$258 million and$281 million for the three months ended March 31,2025 and 2024,respectively.Of the total deferred revenuebalance as of March 31,2025,we expect to recognize$780 million of revenue in the next 12 months.The remaining balance will berecognized at the time of transfer of control of

56、 the product or over the performance period.We have financing receivables on our consolidated balance sheets related to loans we provide for financing our automotivedeliveries.As of March 31,2025 and December 31,2024,we had current net financing receivables of$243 million and$247 million,respectivel

57、y,in Accounts receivable,net,and$747 million and$821 million,respectively,in Other non-current assets for the long-termportion.We offer resale value guarantees to our commercial banking partners in connection with certain vehicle leasing programs.Underthese programs,we originate the lease with our e

58、nd customer and immediately transfer the lease and the underlying vehicle to ourcommercial banking partner,with the transaction being accounted for as a sale under ASC 606,Revenue from Contracts with Customers.We receive upfront payment for the vehicle,do not bear casualty and credit risks during th

59、e lease term,and we provide a guaranteecapped to a limit if they are unable to sell the vehicle at or above the vehicles contractual or determined residual value at the end of thelease term.We estimate a guarantee liability in accordance with ASC 460,Guarantees and record it within other liabilities

60、 on ourconsolidated balance sheets.On a quarterly basis,we assess the estimated market value of vehicles sold under these programs todetermine whether there have been changes to the amount of expected resale value guarantee liabilities.As we accumulate more datarelated to the resale values of our ve

61、hicles or as market conditions change,there may be material changes to their estimated values.Thetotal recorded guarantee liabilities on vehicles sold under these programs were immaterial as of March 31,2025 and December 31,2024.Our maximum exposure on the guarantees we provide if they are unable to

62、 sell the vehicle at or above the vehicles contractual residualvalue at the end of the lease term was$1.90 billion and$1.45 billion as of March 31,2025 and December 31,2024,respectively.Automotive Regulatory CreditsAs of March 31,2025,total transaction price allocated to performance obligations that

63、 were unsatisfied or partially unsatisfied forcontracts with an original expected length of more than one year was$4.58 billion.Of this amount,we expect to recognize$1.46 billionin the next 12 months and the rest over the remaining performance obligation period.Additionally,changes in regulations on

64、 automotiveregulatory credits may significantly impact our remaining performance obligations and revenue to be recognized under these contracts.Automotive Leasing RevenueDirect Sales-Type Leasing ProgramLease receivables relating to sales-type leases are presented on the consolidated balance sheets

65、as follows(in millions):March 31,2025December 31,2024Gross lease receivables$430$484 Unearned interest income(31)(38)Allowance for expected credit losses(6)(6)Net investment in sales-type leases$393$440 Reported as:Prepaid expenses and other current assets$151$152 Other non-current assets242 288 Net

66、 investment in sales-type leases$393$440 10Table of ContentsEnergy Generation and Storage SegmentEnergy Generation and Storage SalesWe record as deferred revenue any non-refundable amounts that are primarily related to prepayments from customers,which isrecognized as revenue as or when the performan

67、ce obligations are satisfied.As of March 31,2025 and December 31,2024,deferredrevenue related to such customer payments amounted to$2.09 billion and$1.77 billion,respectively,mainly due to contractual paymentterms.Revenue recognized from the deferred revenue balances as of December 31,2024 and 2023

68、was$623 million and$417 million forthe three months ended March 31,2025 and 2024,respectively.We have elected the practical expedient to omit disclosure of the amountof the transaction price allocated to remaining performance obligations for contracts with an original expected contract length of one

69、 yearor less.As of March 31,2025,total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied forcontracts with an original expected length of more than one year was$9.95 billion.Of this amount,we expect to recognize$4.71 billionin the next 12 months an

70、d the rest over the remaining performance obligation period.Changes in government and economic incentives ortariffs may impact the transaction price or our ability to execute these existing contracts.We have financing receivables on our consolidated balance sheets related to loans we provide for fin

71、ancing our energy products.Asof March 31,2025 and December 31,2024,we had current net financing receivables of$35 million and$34 million,respectively,inAccounts receivable,net,and$668 million and$658 million,respectively,in Other non-current assets for the long-term portion.Income TaxesWe are subjec

72、t to income taxes in the U.S.and in many foreign jurisdictions.Significant judgment is required in determining ourprovision for income taxes,our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assetsthat are not more likely than not to be realize

73、d.We monitor the realizability of our deferred tax assets taking into account all relevantfactors at each reporting period.In completing our assessment of realizability of our deferred tax assets,we consider our history ofincome(loss)measured at pre-tax income(loss)adjusted for permanent book-tax di

74、fferences on a jurisdictional basis,volatility in actualearnings,excess tax benefits related to stock-based compensation in recent prior years and impacts of the timing of reversal of existingtemporary differences.We also rely on our assessment of the Companys projected future results of business op

75、erations,includinguncertainty in future operating results relative to historical results,volatility in the market price of our common stock and its performanceover time,variable macroeconomic conditions impacting our ability to forecast future taxable income,and changes in business that mayaffect th

76、e existence and magnitude of future taxable income.Our valuation allowance assessment is based on our best estimate of futureresults considering all available information.Our provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate,adjusted ford

77、iscrete items,if any,that are taken into account in the relevant period.Each quarter,we update our estimate of the annual effective taxrate,and if our estimated tax rate changes,we make a cumulative adjustment.Net Income per Share of Common Stock Attributable to Common StockholdersThe following tabl

78、e presents the reconciliation of net income attributable to common stockholders to net income used in computingbasic and diluted net income per share of common stock(in millions):Three Months Ended March 31,20252024Net income attributable to common stockholders(1)$409$1,390 Less:Buy-outs of noncontr

79、olling interest(42)Net income used in computing basic and diluted net income per share of common stock$409$1,432(1)As a result of the adoption of ASU No.2023-08,Accounting for and Disclosure of Crypto Assets,the previously reported quarterlyperiod in 2024 has been recast.See Recent Accounting Pronou

80、ncements below for further details.11Table of ContentsThe following table presents the reconciliation of basic to diluted weighted average shares used in computing net income per shareof common stock attributable to common stockholders(in millions):Three Months Ended March 31,20252024Weighted averag

81、e shares used in computing net income per share of common stock,basic3,2183,186Add:Stock-based awards303286Convertible senior notes 1Warrants 11Weighted average shares used in computing net income per share of common stock,diluted3,5213,484The following table presents the potentially dilutive shares

82、 that were excluded from the computation of diluted net income pershare of common stock attributable to common stockholders,because their effect was anti-dilutive(in millions):Three Months Ended March 31,20252024Stock-based awards1323Restricted CashOur total cash and cash equivalents and restricted

83、cash,as presented in the consolidated statements of cash flows,was as follows(in millions):March 31,2025December 31,2024March 31,2024December 31,2023Cash and cash equivalents$16,352$16,139$11,805$16,398 Restricted cash included in prepaid expenses andother current assets415 494 363 543 Restricted ca

84、sh included in other non-current assets483 404 296 248 Total as presented in the consolidated statements of cashflows$17,250$17,037$12,464$17,189 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

85、 balance may fluctuate as weare waiting 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 receivablebalances

86、associated with sales of energy storage products are dependent on billing milestones and payment terms negotiated for eachcontract,and our accounts receivable balances associated with our sales of regulatory credits are dependent on contractual payment terms.Additionally,government rebates can take

87、up to a year or more to be collected depending on the customary processing timelines of thespecific jurisdictions issuing them.These various factors may have a significant impact on our accounts receivable balance from period toperiod.As of March 31,2025 and December 31,2024,government rebates recei

88、vable was$232 million and$315 million,respectively,inAccounts receivable,net for the current portion and immaterial amounts in Other non-current assets for the long-term portion in ourconsolidated balance sheets.Financing ReceivablesAs of March 31,2025 and December 31,2024,the vast majority of our f

89、inancing receivables were at current status with animmaterial balance being past due.As of March 31,2025 and December 31,2024,the majority of our financing receivables,excludingMyPower notes receivable,were originated in 2023 and 2022.12Table of ContentsAs of March 31,2025 and December 31,2024,the t

90、otal outstanding balance of MyPower customer notes receivable,net ofallowance for expected credit losses,was$245 million and$248 million,respectively,of which$5 million and$4 million were due in thenext 12 months as of March 31,2025 and December 31,2024,respectively.As of March 31,2025 and December

91、31,2024,the allowancefor expected credit losses was$33 million.Concentration of RiskCredit RiskFinancial instruments that potentially subject us to a concentration of credit risk consist of cash,cash equivalents,investments,restricted cash,accounts receivable and other finance receivables.Our cash a

92、nd investments balances are primarily on deposit at highcredit quality financial institutions or invested in highly rated,investment-grade securities.These deposits are typically in excess ofinsured limits.As of March 31,2025 and December 31,2024,no entity represented 10%or more of our total receiva

93、bles balance.Supply RiskWe are dependent on our suppliers,including single source suppliers,and the inability of these suppliers to deliver necessarycomponents of our products in a timely manner at prices,quality levels and volumes acceptable to us,or our inability to efficientlymanage these compone

94、nts from these suppliers,could have a material adverse effect on our business,prospects,financial condition andoperating results.WarrantiesAccrued warranty activity consisted of the following(in millions):Three Months Ended March 31,20252024Accrued warranty-beginning of period$6,716$5,152 Warranty c

95、osts incurred(392)(328)Net changes in liability for pre-existing warranties,including expirations and foreign exchangeimpact347(18)Provision for warranty543 547 Accrued warranty-end of period$7,214$5,353 Recent Accounting PronouncementsRecently issued accounting pronouncements not yet adoptedIn Dece

96、mber 2023,the Financial Accounting Standards Board(“FASB”)issued Accounting Standards Update(“ASU”)No.2023-09,Improvements to Income Tax Disclosures(Topic 740).The ASU requires disaggregated information about a reporting entityseffective tax rate reconciliation as well as additional information on i

97、ncome taxes paid.The ASU is effective for annual periods beginningafter December 15,2024,and will likely result in the required additional disclosures being included in our consolidated financialstatements on either a prospective or retrospective basis,once adopted.In November 2024,the FASB issued A

98、SU No.2024-03,Disaggregation of Income Statement Expenses(Subtopic 220-40).TheASU requires the disaggregated disclosure of specific expense categories,including purchases of inventory,employee compensation,depreciation,and amortization,within relevant income statement captions.This ASU also requires

99、 disclosure of the total amount ofselling expenses along with the definition of selling expenses.The ASU is effective for annual periods beginning after December 15,2026,and interim periods within fiscal years beginning after December 15,2027.Adoption of this ASU can either be appliedprospectively t

100、o consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to anyor all prior periods presented in the consolidated financial statements.Early adoption is also permitted.This ASU will likely result in therequired additional disclosures be

101、ing included in our consolidated financial statements,once adopted.We are currently evaluating theprovisions of this ASU.13Table of ContentsRecently adopted accounting pronouncementsASU 2023-08In December 2023,the FASB issued ASU No.2023-08,Accounting for and Disclosure of Crypto Assets(Subtopic 350

102、-60)(“newcrypto assets standard”).The new crypto assets standard requires certain crypto assets to be measured at fair value separately on thebalance sheet with changes reported in the statement of operations each reporting period.The new crypto assets standard also enhancesthe other intangible asse

103、t disclosure requirements by requiring the name,cost basis,fair value,and number of units for each significantcrypto asset holding.During the fourth quarter of 2024,we adopted the new crypto assets standard on a modified retrospective approacheffective January 1,2024.As such,the previously reported

104、consolidated financial statements for the three months ended March 31,2024have been recast to reflect the adoption of the new crypto assets standard.The following table presents the effects of these changes on theCompanys consolidated financial statements:As of March 31,2024Consolidated Balance Shee

105、ts(unaudited):As Previously ReportedAdjustments from Adoptionof the New Crypto AssetsStandardAs AdjustedAssetsDigital assets,net$184$638$822 Deferred tax assets$6,769$(141)$6,628 Stockholders equityRetained earnings$29,011$497$29,508 Three Months Ended March 31,2024Condensed Consolidated Statements

106、of Operations(unaudited):As Previously ReportedAdjustments from Adoptionof the New Crypto AssetsStandardAs AdjustedOther income(expense),net$108$335$443 Provision for income taxes$409$74$483 Net income attributable to common stockholders$1,129$261$1,390 Net income per share attributable to commonsto

107、ckholders:Basic$0.37$0.08$0.45 Diluted$0.34$0.07$0.41 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 bereceived to sell an asset or paid to transfer a liability in an orderly transaction b

108、etween 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 be used in measuring fair value

109、,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 observableeither directly or indirectly and(Level III)unobservable inputs for which there is little or no market data.The fair value hierarchy requ

110、iresthe use of observable market data when available in determining fair value.Our assets and liabilities that were measured at fair value on arecurring basis were as follows(in millions):14Table of Contents March 31,2025December 31,2024 Fair ValueLevel ILevel IILevel IIIFair ValueLevel ILevel IILev

111、el IIICertificates of deposit andtime deposits$13,287$13,287$12,767$12,767$Commercial paper3,295 3,295 3,919 3,919 U.S.government securities3,984 3,984 3,620 3,620 Corporate debt securities78 78 118 118 Money market funds1,452 1,452 1,753 1,753 Digital assets(1)951 951 1,076 1,076 Total$23,047$2,403

112、$20,644$23,253$2,829$20,424$(1)As of March 31,2025 and December 31,2024,the majority of our digital assets were comprised of 11,509 units of Bitcoin held,ata cost of$386 million.Our assets classified within Level I of the fair value hierarchy were valued using quoted prices in active markets and our

113、 assetsclassified within Level II of the fair value hierarchy utilized the market approach to determine fair value of the investments.Our cash,cash equivalents and investments classified by security type as of March 31,2025 and December 31,2024 consisted ofthe following(in millions):March 31,2025 Ad

114、justed CostGrossUnrealizedGainsGrossUnrealizedLossesFair ValueCash and CashEquivalentsShort-TermInvestmentsCash$14,900$14,900$14,900$Certificates of deposit and time deposits13,285 2 13,287 13,287 Commercial paper3,291 4 3,295 3,295 U.S.government securities3,984 2(2)3,984 3,984 Corporate debt secur

115、ities78 78 78 Money market funds1,452 1,452 1,452 Total cash,cash equivalents and short-terminvestments$36,990$8$(2)$36,996$16,352$20,644 December 31,2024 Adjusted CostGrossUnrealizedGainsGrossUnrealizedLossesFair ValueCash and CashEquivalentsShort-TermInvestmentsCash$14,386$14,386$14,386$Certificat

116、es of deposit and time deposits12,767 12,767 12,767 Commercial paper3,908 11 3,919 3,919 U.S.government securities3,618 3(1)3,620 3,620 Corporate debt securities117 1 118 118 Money market funds1,753 1,753 1,753 Total cash,cash equivalents and short-terminvestments$36,549$15$(1)$36,563$16,139$20,424

117、As of March 31,2025,the majority of our short-term investments had contractual maturity dates within one year.15Table of ContentsDisclosure of Fair ValuesOur financial instruments that are not re-measured at fair value include accounts receivable,financing receivables,otherreceivables,accounts payab

118、le,accrued liabilities,customer deposits and debt.The carrying values of these financial instrumentsmaterially approximate their fair values.Note 3 InventoryOur inventory consisted of the following(in millions):March 31,2025December 31,2024Raw materials$5,100$5,242 Work in process2,024 1,532 Finishe

119、d goods(1)5,247 3,940 Service parts1,335 1,303 Total$13,706$12,017(1)Finished goods inventory includes products-in-transit to fulfill customer orders,new vehicles,used vehicles and energy productsavailable for sale.We write-down inventory for any excess or obsolete inventory or when we believe that

120、the net realizable value of inventory is lessthan the carrying value.During the three months ended March 31,2025 and 2024,we recorded write-downs of$79 million and$39million,respectively,in Cost of revenues in the consolidated statements of operations.Note 4 Property,Plant and Equipment,NetOur prope

121、rty,plant and equipment,net,consisted of the following(in millions):March 31,2025December 31,2024Machinery,equipment,vehicles and office furniture$18,789$18,339 Land and buildings10,914 10,677 AI infrastructure5,420 5,152 Tooling4,427 3,883 Leasehold improvements3,883 3,688 Computer equipment,hardwa

122、re and software3,010 2,902 Construction in progress7,313 6,783 53,756 51,424 Less:Accumulated depreciation(16,668)(15,588)Total$37,088$35,836 Construction in progress is primarily comprised of ongoing construction and expansion of our facilities,equipment and toolingrelated to the manufacturing of o

123、ur products as well as AI-related assets which have not yet been placed in service.Depreciation expense during the three months ended March 31,2025 and 2024 was$1.15 billion and$929 million,respectively.16Table of ContentsNote 5 Accrued Liabilities and OtherOur accrued liabilities and other current

124、liabilities consisted of the following(in millions):March 31,2025December 31,2024Accrued purchases(1)$2,414$2,253 Accrued warranty reserve,current portion2,053 1,917 Payroll and related costs1,612 1,532 Taxes payable(2)1,176 1,367 Customer deposits1,013 993 Operating lease liabilities,current portio

125、n842 807 Sales return reserve,current portion340 305 Other current liabilities1,352 1,549 Total$10,802$10,723(1)Accrued purchases primarily reflects receipts of goods and services for which we had not yet been invoiced.As we are invoiced forthese goods and services,this balance will reduce and accou

126、nts payable will increase.(2)Taxes payable primarily includes value added tax,income tax,sales tax,property tax and use tax payables.Note 6 Other Long-Term LiabilitiesOur other long-term liabilities consisted of the following(in millions):March 31,2025December 31,2024Accrued warranty reserve$5,161$4

127、,799 Operating lease liabilities4,757 4,603 Other non-current liabilities1,120 1,093 Total other long-term liabilities$11,038$10,495 Note 7 DebtThe following is a summary of our debt and finance leases as of March 31,2025(in millions):Net Carrying ValueUnpaidPrincipalBalanceUnusedCommittedAmount(1)C

128、ontractualInterest RatesContractualMaturity Date CurrentLong-TermRecourse debt:RCF Credit Agreement$5,000 Not applicableJanuary 2028Other4 2 6 4.70-5.75%April 2025-January 2031Total recourse debt4 2 6 5,000 Non-recourse debt:Automotive Asset-backed Notes2,083 1,620 3,715 2.96-6.57%June 2026-June 203

129、5China Working Capital Facility 2,755 2,755 1.92-2.11%April 2025-March 2026(2)Energy Asset-backed Notes47 413 464 4.83-6.25%December 2025-June 2050Cash Equity Debt30 290 328 5.25-5.81%July 2033-January 2035Total non-recourse debt2,160 5,078 7,262 Total debt2,164 5,080$7,268$5,000 Finance leases73 21

130、2 Total debt and finance leases$2,237$5,292 17Table of ContentsThe following is a summary of our debt and finance leases as of December 31,2024(in millions):Net Carrying ValueUnpaidPrincipalBalanceUnusedCommittedAmount(1)ContractualInterest RatesContractualMaturity DateCurrentLong-TermRecourse debt:

131、RCF Credit Agreement$5,000 Not applicableJanuary 2028Other4 3 7 4.70-5.75%March 2025-January 2031Total recourse debt4$3 7 5,000 Non-recourse debt:Automotive Asset-backed Notes2,255 2,059 4,329 3.45-6.57%September 2025-June 2035China Working Capital Facility 2,740 2,740 1.92%April 2025(2)Energy Asset

132、-backed Notes54 434 493 4.80-6.25%December 2025-June 2050Cash Equity Debt30 299 338 5.25-5.81%July 2033-January 2035Total non-recourse debt2,339 5,532 7,900 Total debt2,343 5,535$7,907$5,000 Finance leases113 222 Total debt and finance leases$2,456$5,757(1)There are no restrictions on draw-down or u

133、se for general corporate purposes with respect to any available committed funds underour RCF Credit Agreement,except certain specified conditions prior to draw-down.Refer to the notes to the consolidated financialstatements included in our reporting on Form 10-K for the year ended December 31,2024 f

134、or the terms of the facility.(2)As we have the intent and ability to refinance the loan on a long-term basis,we recorded it in Debt and finance leases,net ofcurrent portion in the consolidated balance sheets.Recourse debt refers to debt that is recourse to our general assets.Non-recourse debt refers

135、 to debt that is recourse to only assets ofour subsidiaries.The differences between the unpaid principal balances and the net carrying values are due to debt discounts or deferredissuance costs.As of March 31,2025,we were in material compliance with all financial debt covenants.China Working Capital

136、 FacilityIn March 2025,the China Working Capital Facility was amended to extend the availability of funds through April 2028.Inaddition,the maturity date for each borrowing is the earlier of one year from the date the funds are drawn or April 2029.Borrowings willbear interest at a rate equal to the

137、Loan Prime Rate published by the Peoples Bank of China minus 0.99%.Note 8 Equity Incentive PlansPerformance-Based GrantsFrom time to time,the Compensation Committee of our Board of Directors grants certain employees performance-based restrictedstock units and stock options.As of March 31,2025,we had

138、 unrecognized stock-based compensation expense of$466 million under these grants to purchase orreceive an aggregate 5.1 million shares of our common stock.For awards probable of achievement,we estimate the unrecognized stock-based compensation expense of$397 million will be recognized over a weighte

139、d-average period of 3.9 years.For the three months ended March 31,2025 and 2024,stock-based compensation expense related to these grants,net of forfeitures,were immaterial.18Table of ContentsSummary Stock-Based Compensation InformationThe following table summarizes our stock-based compensation expen

140、se by line item in the consolidated statements of operations(in millions):Three Months Ended March 31,20252024Cost of revenues$209$202 Research and development277 212 Selling,general and administrative87 110 Total$573$524 Note 9 Income TaxesOur effective tax rate was 29%for the three months ended Ma

141、rch 31,2025,compared to 26%for the three months endedMarch 31,2024.The change in our effective tax rate was primarily due to the changes in the mix of our jurisdictional earnings.Our effective tax rates for the first three months of 2025 and 2024 as compared to the U.S.federal statutory rate of 21%w

142、ereprimarily impacted by the mix of our jurisdictional earnings subject to different tax rates,valuation allowances on our deferred tax assetsand benefits from our U.S.tax credits and the Inflation Reduction Act of 2022(“IRA”)manufacturing credits.Note 10 Commitments and ContingenciesOperating Lease

143、 Arrangements in Buffalo,New York and Shanghai,ChinaFor a description of our operating lease arrangements in Buffalo,New York,and Shanghai,China,refer to Note 14,Commitmentsand Contingencies,in our Annual Report on Form 10-K for the year ended December 31,2024.As of March 31,2025,we have met andexpe

144、ct to meet the requirements under these arrangements,as may be modified and discussed from time to time,based on our current andanticipated level of operations.Legal ProceedingsLitigation Relating to 2018 CEO Performance AwardOn June 4,2018,a purported Tesla stockholder filed a putative class and de

145、rivative action in the Delaware Court of Chanceryagainst Elon Musk and the members of Teslas board of directors as then constituted,alleging corporate waste,unjust enrichment and thatsuch board members breached their fiduciary duties by approving the stock-based compensation plan awarded to Elon Mus

146、k in 2018(the“2018 CEO Performance Award”).Trial was held November 14-18,2022.On January 30,2024,the Court issued an opinion finding thatthe 2018 CEO Performance Award should be rescinded.Plaintiffs counsel filed a brief seeking a fee award of 29,402,900 Tesla shares,plus expenses of$1,120,115.50.Te

147、sla opposed the fee request,and at Teslas 2024 Annual Meeting of Stockholders,72%of thedisinterested voting shares of Tesla,excluding shares owned by Mr.Musk and Kimbal Musk,voted to ratify the 2018 CEO PerformanceAward.Because Teslas disinterested stockholders voted to ratify the 2018 CEO Performan

148、ce Award,Mr.Musk and the other directordefendants,joined by Tesla,filed a brief seeking to revise the Courts January 30,2024 opinion.On December 2,2024,the Court issuedan opinion denying the motion to revise the Courts January 30,2024 opinion and awarded Plaintiffs counsel fees in the amount of$345

149、million.A final judgment was entered by the Court,and the director defendants and Tesla appealed the decisions to the DelawareSupreme Court.Tesla and the Director Defendants filed their response briefs on March 11,2025.Plaintiffs opening brief is due on April25,2025,and reply briefs are due on May 1

150、6,2025.If the appeal to the Delaware Supreme Court were unsuccessful,it could result in amaterial adverse impact on our business and reported earnings due to the uncertainty and potentially significant costs associated withreplacing or revising Mr.Musks compensation package,the types of which were d

151、escribed in our 2024 proxy statement.Litigation Related to Directors CompensationOn June 17,2020,a purported Tesla stockholder filed a derivative action in the Delaware Court of Chancery,purportedly on behalfof Tesla,against certain of Teslas current and former directors regarding compensation award

152、s granted to Teslas directors,other thanElon Musk,between 2017 and 2020.The suit asserts claims for breach of fiduciary duty and unjust enrichment and seeks declaratory andinjunctive relief,unspecified damages and other relief.Defendants filed their answer on September 17,2020.19Table of ContentsOn

153、July 14,2023,the parties filed a Stipulation and Agreement of Compromise and Settlement,which does not involve anadmission of any wrongdoing by any party.Pursuant to the terms of the agreement,Tesla provided notice of the proposed settlement tostockholders of record as of July 14,2023.The Court held

154、 a hearing regarding the settlement on October 13,2023,after which it took thesettlement and Plaintiffs counsel fees request under advisement.On January 8,2025,the Court approved the settlement and awardedPlaintiffs counsel fees in the amount of approximately$176 million.A final judgment was entered

155、 by the Court on January 13,2025.The Company disagrees with the amount of attorneys fees awarded by the court.On February 10,2025,Tesla appealed theattorneys fee award amount to the Delaware Supreme Court.Tesla did not appeal the Delaware Court of Chancerys approval of theunderlying settlement.Also

156、on February 10,2025,a single shareholder appealed the approval of the settlement.This shareholders appealdoes not seek to alter any material terms(e.g.,financial contributions or the defendants obligations under the Settlement Agreement).TheDelaware Court of Chancery had previously rejected this sha

157、reholders objections when approving the Settlement Agreement.Because neither Teslas appeal nor the shareholders appeal seeks to vacate the Settlement Agreement or materially modify itsterms,the Company expects to implement the provisions of the Settlement Agreement in May 2025 by cancelling the opti

158、ons requiringcancellation under its terms.In connection with the settlement,Tesla received$277 million from certain directors and paid Plaintiffs counsel fees of$176 million(which,as noted above,the Company is appealing)in the three months ended March 31,2025.We have recorded a$31 million reversal o

159、f previously recognized stock-based compensation expense in association with the returned awards and increasedour provision for income taxes in relation to the return of directors compensation.As the settlement was an equity transaction,the netimpact to additional paid-in-capital was$110 million in

160、the three months ended March 31,2025.Litigation Relating to Potential Going Private TransactionBetween 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,a

161、s constituted at relevant times,inrelation to statements made and actions connected to a potential going private transaction,with certain of the lawsuits challengingadditional Twitter posts by Mr.Musk,among other things.Several of those actions were consolidated,and all have been stayed.Inaddition t

162、o these cases,two derivative lawsuits were filed on October 25,2018 and February 11,2019 in the U.S.District Court for theDistrict of Delaware,purportedly on behalf of Tesla,against Mr.Musk and the members of the Tesla board of directors as thenconstituted.Those cases have also been consolidated.On

163、October 21,2022,a lawsuit was filed in the Delaware Court of Chancery by a purported shareholder of Tesla alleging,amongother things,that board members breached their fiduciary duties in connection with their oversight of the Companys 2018 settlement withthe SEC,as amended.Among other things,the pla

164、intiff seeks reforms to the Companys corporate governance and internal procedures,unspecified damages,and attorneys fees.The lawsuit has been stayed.Certain Derivative Lawsuits in DelawareBefore converting from a Delaware to Texas corporation on June 13,2024,three separate derivative actions brought

165、 by purportedTesla stockholders were filed in the Delaware Court of Chancery on May 24,June 10 and June 13,2024,purportedly on behalf of Tesla,against current and former directors regarding topics involving Elon Musk and others,X Corp.(formerly Twitter)and x.AI.These suitsassert various claims,inclu

166、ding breach of fiduciary duty and breach of contract,and seek unspecified damages and other relief.On August6,2024,the plaintiffs in these three actions moved to consolidate the matters into a single case.The Court consolidated two of the threecases.Tesla and the directors filed motions to dismiss o

167、n April 4,2025.Litigation and Investigations Relating to Alleged Discrimination and HarassmentOn February 9,2022,the California Civil Rights Department(“CRD,”formerly“DFEH”)filed a civil complaint against Tesla inAlameda County,California Superior Court,alleging systemic race discrimination,hostile

168、work environment and pay equity claims,among others.CRDs amended complaint seeks monetary damages and injunctive relief.The case is currently in discovery.Trial isscheduled for September 15,2025.Additionally,on June 1,2022 the Equal Employment Opportunity Commission(“EEOC”)issued a cause finding aga

169、inst Tesla thatclosely parallels the CRDs allegations.On September 28,2023,the EEOC filed a civil complaint against Tesla in the United StatesDistrict Court for the Northern District of California asserting claims for race harassment and retaliation and seeking,among other things,monetary and injunc

170、tive relief.20Table of ContentsOn June 16,2022,two Tesla stockholders filed separate derivative actions in the U.S.District Court for the Western District ofTexas,purportedly on behalf of Tesla,against certain of Teslas current and former directors.Both suits assert claims for breach offiduciary dut

171、y,unjust enrichment,and violation of the federal securities laws in connection with alleged race and gender discriminationand sexual harassment.Among other things,plaintiffs seek declaratory and injunctive relief,unspecified damages payable to Tesla,andattorneys fees.On July 22,2022,the Court consol

172、idated the two cases and on September 6,2022,plaintiffs filed a consolidatedcomplaint.On November 7,2022,the defendants filed a motion to dismiss the case and on September 15,2023,the Court dismissed theaction but granted plaintiffs leave to file an amended complaint.On November 2,2023,plaintiff fil

173、ed an amended complaint purportedlyon behalf of Tesla,against Elon Musk.On December 19,2023,the defendants moved to dismiss the amended complaint,which the Courtgranted on April 12,2024,with leave for plaintiffs to amend.On May 15,2024,plaintiffs filed a second amended consolidated complaintpurporte

174、dly on behalf of Tesla,against Mr.Musk.On July 1,2024,the defendants moved to dismiss the second amended consolidatedcomplaint.On March 12,2025,the Court granted the motion to dismiss,dismissing the plaintiffs complaint with prejudice.Other Litigation Related to Our Products and ServicesWe are also

175、subject to various lawsuits that seek monetary and other injunctive relief.These lawsuits include proposed class actionsand other consumer claims that allege,among other things,purported defects and misrepresentations related to our products and services.For example,on September 14,2022,a proposed c

176、lass action was filed against Tesla,Inc.and related entities in the U.S.District Court forthe Northern District of California,alleging various claims about the Companys driver assistance technology systems under state andfederal law.This case was later consolidated with several other proposed class

177、actions,and a Consolidated Amended Complaint was filedon October 28,2022,which seeks damages and other relief on behalf of all persons who purchased or leased from Tesla between January1,2016,to the present.On October 5,2022,a proposed class action complaint was filed in the U.S.District Court for t

178、he Eastern Districtof New York asserting similar state and federal law claims against the same defendants.On September 30,2023,the Court dismissed thisaction with leave to amend the complaint.On November 20,2023,the plaintiff moved to amend the complaint,which Tesla opposed.OnAugust 8,2024,the Court

179、 denied the plaintiffs motion for leave to file an amended complaint and entered judgment for Tesla.OnSeptember 5,2024,the plaintiff filed a notice of appeal to United States Court of Appeals for the Second Circuit,and oral argumentoccurred on March 20,2025.On March 22,2023,the plaintiffs in the Nor

180、thern District of California consolidated action filed a motionfor a preliminary injunction to order Tesla to(1)cease using the term“Full Self-Driving Capability”(FSD Capability),(2)cease the saleand activation of FSD Capability and deactivate FSD Capability on Tesla vehicles,and(3)provide certain n

181、otices to consumers aboutproposed court-findings about the accuracy of the use of the terms Autopilot and FSD Capability.Tesla opposed the motion.OnSeptember 30,2023,the Court denied the request for a preliminary injunction,compelled four of five plaintiffs to arbitration,anddismissed the claims of

182、the fifth plaintiff with leave to amend the complaint.On October 31,2023,the remaining plaintiff in the NorthernDistrict of California action filed an amended complaint,which Tesla moved to dismiss,and on May 15,2024,the Court granted in partand denied in part Teslas motion.On October 2,2023,a simil

183、ar proposed class action was filed in San Diego County Superior Court inCalifornia.Tesla subsequently removed the San Diego County case to federal court and on January 8,2024,the federal court grantedTeslas motion to transfer the case to the U.S.District Court for the Northern District of California

184、.Tesla moved to compel arbitration,which the plaintiff did not oppose,and on June 27,2024,the Court stayed the case pending arbitration.On February 27,2023,a proposed class action was filed in the U.S.District Court for the Northern District of California againstTesla,Inc.,Elon Musk and certain curr

185、ent and former Company executives.The complaint alleges that the defendants made materialmisrepresentations and omissions about the Companys Autopilot and FSD Capability technologies and seeks money damages and otherrelief on behalf of persons who purchased Tesla stock between February 19,2019,and F

186、ebruary 17,2023.An amended complaint wasfiled on September 5,2023,naming only Tesla,Inc.and Elon Musk as defendants.On November 6,2023,Tesla moved to dismiss theamended complaint.On September 30,2024,the Court granted Teslas motion to dismiss without prejudice.On November 26,2024,thecourt issued a f

187、inal judgment in Teslas favor,and on December 23,2024,the plaintiffs filed a notice of appeal to the United States Courtof Appeals for the Ninth Circuit.21Table of ContentsOn March 14,2023,a proposed class action was filed against Tesla,Inc.in the U.S.District Court for the Northern District ofCalif

188、ornia.Several similar complaints were also filed in the same court and these cases have now all been consolidated.These complaintsallege that Tesla violates federal antitrust and warranty laws through its repair,service,and maintenance practices and seeks,among otherrelief,damages for persons who pa

189、id 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.On September 27,2023,the court granted Teslas motion tocompel arbitration as to three of the plaintiffs,and on November 17,2023,th

190、e court granted Teslas motion to dismiss without prejudice.The plaintiffs filed a Consolidated Second Amended Complaint on December 12,2023,which Tesla moved to dismiss.Plaintiffs alsoappealed the courts arbitration order,which was denied.On June 17,2024,the Court granted in part and denied in part

191、Teslas motion todismiss the Consolidated Second Amended Complaint.On February 18,2025,the plaintiffs filed a Third Consolidated Amended ClassAction Complaint that removed the claims for monetary damages.The Company intends to vigorously defend itself in these matters;however,we cannot predict the ou

192、tcome or impact.We areunable to reasonably estimate the possible loss or range of loss,if any,associated with these claims,unless noted.Certain Investigations and Other MattersWe regularly receive requests for information,including subpoenas,from regulators and governmental authorities such as theNa

193、tional Highway Traffic Safety Administration,the National Transportation Safety Board,the Securities and Exchange Commission(“SEC”),the Department of Justice(“DOJ”),and various local,state,federal,and international agencies.The ongoing requests forinformation include topics such as operations,techno

194、logy(e.g.,vehicle functionality,vehicle incidents,Autopilot and FSD Capability),compliance,finance,data privacy,and other matters related to Teslas business,its personnel,and related parties.We routinely cooperatewith such formal and informal requests for information,investigations,and other inquiri

195、es.To our knowledge no government agency inany 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 possibility of a material adverse impact on our

196、 business,results of operation,prospects,cash flows,financial position or brand.We are also subject to various other legal proceedings,risks and claims that arise from the normal course of business activities.Forexample,during the second quarter of 2023,a foreign news outlet reported that it obtaine

197、d certain misappropriated data including,purportedly non-public Tesla business and personal information.Tesla has made notifications to potentially affected individuals(currentand former employees)and regulatory authorities and we are working with certain law enforcement and other authorities.On Aug

198、ust 5,2023,a putative class action was filed in the United States District Court for the Northern District of California,purportedly on behalf ofall U.S.individuals impacted by the data incident,followed by several additional lawsuits,that each assert claims under various state lawsand seeks monetar

199、y damages and other relief.If an unfavorable ruling or development were to occur in these or other possible legalproceedings,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.22Table of Co

200、ntentsNote 11 Variable Interest Entity ArrangementsThe aggregate carrying values of the variable interest entities assets and liabilities,after elimination of any intercompanytransactions and balances,in the consolidated balance sheets were as follows(in millions):March 31,2025December 31,2024Assets

201、 Current assets Cash and cash equivalents$47$49 Accounts receivable,net20 18 Prepaid expenses and other current assets288 276 Total current assets355 343 Operating lease vehicles,net358 392 Solar energy systems,net2,273 2,310 Other non-current assets184 183 Total assets$3,170$3,228 Liabilities Curre

202、nt liabilities Accrued liabilities and other$22$32 Deferred revenue6 6 Current portion of debt and finance leases1,946 2,114 Total current liabilities1,974 2,152 Deferred revenue,net of current portion67 71 Debt and finance leases,net of current portion1,450 1,834 Total liabilities$3,491$4,057 Note

203、12 Segment Reporting and Information about Geographic AreasWe have two operating and reportable segments:(i)automotive and(ii)energy generation and storage.The following tablepresents revenues,cost of revenues and gross profit by reportable segment(in millions):Three Months Ended March 31,20252024Au

204、tomotive segment Revenues$16,605$19,666 Cost of revenues(1)$14,237$16,373 Gross profit$2,368$3,293 Energy generation and storage segment Revenues$2,730$1,635 Cost of revenues(2)$1,945$1,232 Gross profit$785$403(1)Depreciation and amortization included in Cost of revenues for the automotive segment f

205、or the three months ended March 31,2025and 2024 was$954 million and$879 million,respectively.(2)Depreciation and amortization included in Cost of revenues for the energy generation and storage segment for the three monthsended March 31,2025 and 2024 was$83 million and$91 million,respectively.23Table

206、 of ContentsThe following table presents revenues by geographic area based on the sales location of our products(in millions):Three Months Ended March 31,20252024United States$10,333$9,762 China4,303 4,592 Other international4,699 6,947 Total$19,335$21,301 The following table presents long-lived ass

207、ets by geographic area(in millions):March 31,2025December 31,2024United States$33,234$32,461 Germany4,467 4,175 Other international4,242 4,124 Total$41,943$40,760 The following table presents inventory by reportable segment(in millions):March 31,2025December 31,2024Automotive$11,562$9,988 Energy gen

208、eration and storage2,144 2,029 Total$13,706$12,017 24Table of ContentsITEM 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 relatednotes include

209、d elsewhere in this Quarterly Report on Form 10-Q.OverviewOur mission 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 maintenan

210、ce,installation,operation,charging,insurance,financial and other services related to our products.Additionally,we are increasingly focused on productsand services based on AI,robotics and automation.As a result of rapidly evolving trade policy,uncertainty in the automotive and energy markets continu

211、es to increase,posing risks toour global supply chain and cost structure which could have a meaningfully adverse impact on demand for our products and ourprofitability.The current tariff regime will have a relatively larger impact on our energy generation and storage business compared to ourautomoti

212、ve business.While we prepare for near-term challenges to our business under current policies,we are focused on long-termgrowth opportunities as we continue to make prudent investments.In 2025,we produced approximately 363,000 consumer vehicles and delivered approximately 337,000 consumer vehicles th

213、roughthe first quarter.We are focused on profitable growth,including by leveraging existing factories and production lines to introduce new andmore affordable products,further improving and deploying our FSD(Supervised)capabilities,including future autonomous capabilitiesthrough our purpose-built Ro

214、botaxi product,Cybercab,reducing costs,increasing vehicle production,utilized capacity and deliverycapabilities,improving and developing our vehicles and battery technologies,vertically integrating and localizing our supply chain,andexpanding our global infrastructure,including our service and charg

215、ing infrastructure.In 2025,we deployed 10.4 GWh of energy storage products through the first quarter.We are focused on ramping the productionand increasing the market penetration of our energy storage products.During the three months ended March 31,2025,we recognized total revenues of$19.34 billion,

216、representing a decrease of$1.97 billion compared to the same period in the prior year.During the three months ended March 31,2025,our net income attributable tocommon stockholders was$409 million,representing a decrease of$981 million compared to the same period in the prior year.Wecontinue to ramp

217、production and build and optimize our manufacturing capacity,expand our operations while focusing on further costreductions and operational efficiencies to enable increased deliveries and deployments of our products,and invest in research anddevelopment to accelerate our AI,software,and fleet-based

218、profits for further revenue growth.We ended the first quarter of 2025 with$37.00 billion in cash and cash equivalents and investments,representing an increase of$433 million from the end of 2024.Our cash flows provided by operating activities were$2.16 billion during the three months endedMarch 31,2

219、025,compared to$242 million during the same period ended March 31,2024,representing an increase of$1.91 billion.Capital expenditures amounted to$1.49 billion during the three months ended March 31,2025,compared to$2.78 billion during the sameperiod ended March 31,2024,representing a decrease of$1.29

220、 billion.Overall growth has allowed our business to generally fund itself,and we will continue to make critical high-value investments while maintaining a strong balance sheet.25Table of ContentsManagement Opportunities,Challenges and Uncertainties and 2025 OutlookAutomotiveProductionThe following i

221、s a summary of the status of production of each of our announced vehicle models in production and underdevelopment,as of the date of this Quarterly Report on Form 10-Q:Production LocationVehicle Model(s)Production StatusFremont FactoryModel S/Model XActive Model 3/Model YActiveGigafactory ShanghaiMo

222、del 3/Model YActiveGigafactory Berlin-BrandenburgModel YActiveGigafactory TexasModel YActive CybertruckActiveCybercabConstructionGigafactory NevadaTesla SemiConstructionTBDRoadsterIn developmentWe are focused on growing our manufacturing capacity,which includes capacity for manufacturing newer vehic

223、le models such asour Cybertruck,Tesla Semi and future vehicles utilizing aspects of our next generation platform,and ramping the production at ourGigafactories to their installed production capacities as well as increasing production rate and efficiency at our current factories.In thefirst quarter o

224、f 2025,we accomplished an industry first-simultaneously changing over production lines across all factories for our NewModel Y.While there were several weeks of lost production in the quarter from this changeover,we successfully ramped our productionlines across four factories while managing supply

225、chains across three continents without any major disruptions,demonstrating theadvancement of our operational and supply chain management capabilities.As we continue to ramp production of the New Model Y,weare also preparing our factories for the launch of new models later this year.The next phase of

226、 production growth will be initiated byadvances in autonomy and the introduction of new products,including those built on our next generation vehicle platform,as well as ourability to add to our available sources of battery cell supply by manufacturing our own cells that we are developing to have hi

227、gh-volumeoutput,lower capital and production costs and longer range.Our goals are to improve vehicle performance,decrease production costs andincrease affordability and customer awareness.These plans are subject to uncertainties inherent in establishing and ramping manufacturing operations,which may

228、 be exacerbatedby new product and manufacturing technologies we introduce,the number of concurrent international projects,any industry-widecomponent constraints,labor shortages and any future impact from events outside of our control.For example,changes to trade policywith respect to tariffs,export

229、controls and other restrictions may impact our global supply chain cost structure and availability,affectingnot only vehicle production,but also facility expansions.Moreover,we have set ambitious technological targets with our plans for batterycells as well as for iterative manufacturing and design

230、improvements for our vehicles with each new factory expansion.AutomotiveDemand,Sales,Deliveries and InfrastructureOur cost reduction efforts,cost innovation strategies,and additional localized procurement and manufacturing are key to ourvehicles affordability and have allowed us to competitively pri

231、ce our vehicles.We will also continue to generate demand by improvingour vehicles performance and functionality,including through product offerings and features utilizing artificial intelligence such asAutopilot,FSD(Supervised),and other software,and delivering new vehicles and vehicle options,such

232、as our launch of the updatedModel 3 in 2024,and the New Model Y in the first quarter of 2025.In addition,we have been increasing awareness,and expanding ourvehicle financing programs,including attractive leasing terms for our customers.26Table of ContentsHowever,we operate in a cyclical industry tha

233、t is sensitive to shifting consumer trends,political and regulatory uncertainty,including with respect to trade and the environment,all of which can be compounded by inflationary pressures,rising energy prices,interest rate fluctuations and the liquidity of enterprise customers.For example,as inflat

234、ionary pressures increased across the markets inwhich we operate,central banks in developed countries raised interest rates rapidly and substantially,which impacted the affordability ofvehicle lease and finance arrangements.Further,sales of vehicles in the automotive industry also tend to be cyclica

235、l in many markets,which may expose us to increased volatility as we expand and adjust our operations.Moreover,as additional competitors enter themarketplace and help bring the world closer to sustainable transportation,we will have to adjust and continue to execute well to maintainour momentum.Addit

236、ionally,our suppliers liquidity and allocation plans may be affected by current challenges in the North Americanautomotive industry,which could reduce our access to components or result in unfavorable changes to cost.These macroeconomic andindustry trends have had,and will likely continue to have,an

237、 impact on the pricing of,and order rate for our vehicles,and in turn ouroperating margin.Changes in government and economic policies,incentives or tariffs may also impact our production,cost structure and thecompetitive landscape.While the final scope and application of recently announced changes i

238、n trade policy remain uncertain at this time,higher tariffs on imports and subsequent retaliatory tariffs could adversely impact consumer spending and demand for durable goods andrelated services.We will continue to adjust accordingly to such developments,and we believe our ongoing cost reduction ef

239、forts,including through production innovation,process improvements and logistics optimization,and focus on operating leverage,verticalintegration and supply chain localization will continue to benefit us in relation to our competitors.Our new products,which will includemore affordable options,and ou

240、r advances in autonomy,position us for future growth.As our production increases,we must work constantly to similarly increase vehicle delivery capability so that it does not become abottleneck on our total deliveries.We are also committed to reducing the percentage of vehicles delivered in the thir

241、d month of eachquarter,which will help to reduce the cost per vehicle.As we expand our manufacturing operations globally,we will also have to continueto increase and staff our delivery,servicing and charging infrastructure accordingly,maintain our vehicle reliability and optimize ourSupercharger loc

242、ations to ensure cost effectiveness and customer satisfaction.In particular,as other automotive manufacturers haveannounced their adoption of the North American Charging Standard(“NACS”)and agreements with us to utilize our Superchargers,wemust correspondingly expand our network in order to ensure a

243、dequate availability to meet customer demands.We also remain focused oncontinued enhancements of the capability and efficiency of our servicing operations.Energy Generation and Storage Demand,Production and DeploymentThe long-term success of this business is dependent upon incremental volume growth.

244、We continue to increase the production andcapabilities of our energy storage products to meet high levels of demand,including the introduction of Powerwall 3 in 2024,and theramps of our Megafactories in Shanghai and Lathrop,California.For Megapack,energy storage deployments can vary meaningfullyquar

245、ter to quarter depending on the timing of specific project milestones and logistics.As these product lines grow,we will have tomaintain adequate battery cell supply for our energy storage products.At the same time,changes in government and economic incentivesor tariffs may also impact our sales,cost

246、 structure and the competitive landscape.For instance,the recently announced import tariffs bythe US government could significantly increase battery cell expenses,negatively impacting consumer demand.Despite these challenges,as AI infrastructure drives rapid load growth,we see opportunities for our

247、energy storage products to stabilize the grid,shift energy whenit is needed most and provide additional power capacity.Cash Flow and Capital Expenditure TrendsOur capital expenditures are typically difficult to project beyond the short-term given the number and breadth of our core projectsat any giv

248、en time,and may further be impacted by uncertainties in future global market conditions and shifting global trade policy.We aresimultaneously developing and ramping new products,building or ramping manufacturing facilities on three continents,piloting thedevelopment and manufacture of new battery ce

249、ll technologies,expanding our Supercharger network and investing in autonomy and otherartificial intelligence enabled training and products,and the pace of our capital spend may vary depending on overall priority amongprojects,the pace at which we meet milestones,production adjustments to and among

250、our various products,increased capital efficienciesand the addition of new projects.While we prepare for near-term challenges to our business under current policies,we are focused onlong-term growth opportunities as we continue to make critical,high-value investments while maintaining a strong balan

251、ce sheet.Owingand subject to the foregoing as well as the pipeline of announced projects under development,all other continuing infrastructure growthand varying levels of inflation,we currently expect our capital expenditures to exceed$10.00 billion in 2025.Changes in trade policy maynecessitate adj

252、ustments to our project timelines,potentially impacting our capital expenditure expectations.27Table of ContentsOur business has generally been consistently generating cash flow from operations in excess of our level of capital spend,and withbetter working capital management resulting in shorter day

253、s sales outstanding than days payable outstanding,our sales growth is alsogenerally facilitating positive cash generation.We have and will continue to utilize such cash flows,among other things,to invest inautonomy,further vertically integrate our supply chain,expand our product roadmap and provide

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

255、r expensesresulting from changes in global trade conditions and labor availability.Overall,we expect our ability to be self-funding to continue aslong as macroeconomic factors support current trends in our sales.Critical Accounting Policies and EstimatesFor a description of our critical accounting p

256、olicies and estimates,refer to Part II,Item 7,Critical Accounting Policies andEstimates in our Annual Report on Form 10-K for the year ended December 31,2024.There have been no material changes to our criticalaccounting policies and estimates since our Annual Report on Form 10-K for the year ended D

257、ecember 31,2024.Recent Accounting PronouncementsSee Note 1,Summary of Significant Accounting Policies,to the consolidated financial statements included elsewhere in thisQuarterly Report on Form 10-Q.Results of OperationsRevenues Three Months Ended March31,Change(Dollars in millions)20252024$%Automot

258、ive sales$12,925$16,460$(3,535)(21)%Automotive regulatory credits595 442 153 35%Automotive leasing447 476(29)(6)%Total automotive revenues13,967 17,378(3,411)(20)%Services and other2,638 2,288 350 15%Total automotive&services and other segment revenue16,605 19,666(3,061)(16)%Energy generation and st

259、orage segment revenue2,730 1,635 1,095 67%Total revenues$19,335$21,301$(1,966)(9)%Automotive&Services and Other SegmentAutomotive sales revenue decreased$3.54 billion,or 21%,in the three months ended March 31,2025 as compared to the threemonths ended March 31,2024,due to a decrease of approximately

260、51,000 combined Model 3 and Model Y cash deliveries in part frombringing down all of our vehicle factories simultaneously for the changeover to New Model Y.Additionally,we had a lower averageselling price per unit driven by sales mix,higher customer incentives such as attractive financing options,an

261、d a negative impact from thestrengthening of the United States dollar when compared to foreign currencies year over year,as well as a decrease of 5,000 deliveries ofother models.Automotive regulatory credits revenue increased$153 million,or 35%,in the three months ended March 31,2025 as compared tot

262、he three months ended March 31,2024.This increase was driven by demand for credits in North America as other automobilemanufacturers have scaled back on their battery electric vehicle plans.Services and other revenue increased$350 million,or 15%,in the three months ended March 31,2025 as compared to

263、 the threemonths ended March 31,2024.The increase was primarily due to increases in paid Supercharging revenue,insurance services revenue,non-warranty maintenance services and collision revenue,used vehicle revenue and part sales revenue.28Table of ContentsEnergy Generation and Storage SegmentEnergy

264、 generation and storage revenue increased$1.10 billion,or 67%,in the three months ended March 31,2025 as compared tothe three months ended March 31,2024.The increase was primarily due to increases in Megapack and Powerwall deployments comparedto the prior year,partially offset by a decrease in avera

265、ge selling price of Megapack.Cost of Revenues and Gross MarginThree Months Ended March31,Change(Dollars in millions)20252024$%Cost of revenuesAutomotive sales$11,461$13,897$(2,436)(18)%Automotive leasing239 269(30)(11)%Total automotive cost of revenues11,700 14,166(2,466)(17)%Services and other2,537

266、 2,207 330 15%Total automotive&services and other segment cost of revenues14,237 16,373(2,136)(13)%Energy generation and storage segment1,945 1,232 713 58%Total cost of revenues$16,182$17,605$(1,423)(8)%Gross profit total automotive$2,267$3,212 Gross margin total automotive16.2%18.5%Gross profit tot

267、al automotive&services and other segment$2,368$3,293 Gross margin total automotive&services and other segment14.3%16.7%Gross profit energy generation and storage segment$785$403 Gross margin energy generation and storage segment28.8%24.6%Total gross profit$3,153$3,696 Total gross margin16.3%17.4%Aut

268、omotive&Services and Other SegmentCost of automotive sales revenue decreased$2.44 billion,or 18%,in the three months ended March 31,2025 as compared to thethree months ended March 31,2024 due to the decreases in deliveries year over year as discussed above.Additionally,there was adecrease in the ave

269、rage cost per unit of our vehicles primarily from lower raw material costs and a positive impact from the strengtheningof United States dollar when compared to foreign currencies year over year,partially offset by sales mix.Cost of services and other revenue increased$330 million,or 15%,in the three

270、 months ended March 31,2025 as compared to thethree months ended March 31,2024.The increase in cost of services and other revenue is generally in line with the changes in servicesand other revenue as described above.Gross margin for total automotive decreased from 18.5%to 16.2%in the three months en

271、ded March 31,2025 as compared to thethree months ended March 31,2024 primarily due to lower average selling price per unit,partially offset by lower average cost per unitand an increase in regulatory credits revenue,as discussed above.Gross margin for total automotive&services and other segment decr

272、eased from 16.7%to 14.3%in the three months endedMarch 31,2025 as compared to the three months ended March 31,2024.The change in gross margin is primarily due to the automotivegross margin factors discussed above.29Table of ContentsEnergy Generation and Storage SegmentCost of energy generation and s

273、torage revenue increased$713 million,or 58%,in the three months ended March 31,2025 ascompared to the three months ended March 31,2024.The increase in cost of revenues was primarily due to increases in Megapack andPowerwall deployments compared to the prior year.Additionally,average cost per unit fo

274、r Megapack and Powerwall both decreasedprimarily from lower raw material costs.Gross margin for energy generation and storage increased from 24.6%to 28.8%in the three months ended March 31,2025 ascompared to the three months ended March 31,2024.The increase was primarily due to a higher proportion o

275、f our storage business,which operated at a higher gross margin,within the segment as compared to the prior period.Research and Development ExpenseThree Months Ended March 31,Change(Dollars in millions)20252024$%Research and development$1,409$1,151$258 22%As a percentage of revenues7%5%Research and d

276、evelopment(“R&D”)expenses increased$258 million,or 22%,in the three months ended March 31,2025 ascompared to the three months ended March 31,2024 primarily due to an increase in AI programs and related costs.R&D expenses as apercentage of revenue increased from 5%to 7%in the three months ended March

277、 31,2025 as compared to the three months endedMarch 31,2024 primarily due to higher R&D expenses and lower total revenues in the current period.Selling,General and Administrative ExpenseThree Months Ended March31,Change(Dollars in millions)20252024$%Selling,general and administrative$1,251$1,374$(12

278、3)(9)%As a percentage of revenues6%6%Selling,general and administrative(“SG&A”)expenses decreased$123 million,or 9%,in the three months ended March 31,2025as compared to the three months ended March 31,2024 driven by a$52 million decrease in employee and labor costs,includingprofessional services,a$

279、30 million decrease in facilities related expenses,a$22 million decrease in stock-based compensation and a$19million decrease in marketing expenses.Interest IncomeThree Months EndedMarch 31,Change(Dollars in millions)20252024$%Interest income$400$350$50 14%Interest income increased$50 million,or 14%

280、,in the three months ended March 31,2025 as compared to the three months endedMarch 31,2024.The increase was primarily due to higher interest earned on our cash and cash equivalents and short-term investmentscompared to the prior period due to an increase in our average portfolio balance,partially o

281、ffset by a lower average interest rate.Other(Expense)Income,NetThree Months EndedMarch 31,Change(Dollars in millions)20252024$%Other(expense)income,net$(119)$443$(562)Notmeaningful30Table of ContentsOther(expense)income,net,changed unfavorably by$562 million in the three months ended March 31,2025 a

282、s compared to thethree months ended March 31,2024.The unfavorable change was primarily due a$125 million mark-to-market loss in the current periodcompared to a$335 million mark-to-market gain on our bitcoin digital assets in the prior period.Additionally,there were unfavorablefluctuations in foreign

283、 currency exchange rates on our intercompany balances.As our intercompany balances are significant in nature andwe do not typically hedge foreign currency risk,we can experience significant fluctuations in foreign currency exchange rate gains andlosses from period to period.Provision for Income Taxe

284、sThree Months Ended March31,Change(Dollars in millions)20252024$%Provision for income taxes$169$483$(314)(65)%Effective tax rate29%26%Our provision for income taxes decreased by$314 million in the three months ended March 31,2025 as compared to the threemonths ended March 31,2024,primarily due to th

285、e change in our pre-tax income year over year.Our effective tax rate increased from26%to 29%in the three months ended March 31,2025 as compared to the three months ended March 31,2024,primarily due to thechanges in the mix of our jurisdictional earnings.See Note 9,Income Taxes,to the consolidated fi

286、nancial statements included elsewhere in this Quarterly Report on Form 10-Q forfurther details.Liquidity and Capital ResourcesWe expect to continue to generate net positive operating cash flow.The cash we generate from our core operations enables us tofund ongoing operations and production,our resea

287、rch and development projects for new products and technologies including ourproprietary battery cells,additional manufacturing ramps at existing manufacturing facilities,the construction of future factories,and thecontinued expansion of our retail and service locations,body shops,Mobile Service flee

288、t,Supercharger,including to support NACS,energy product installation capabilities and autonomy and other 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 ableto adjust our capital an

289、d operating expenditures by operating segment.For example,if our near-term manufacturing operations decrease inscale or ramp more slowly than expected,including due to global economic or business conditions,we may choose to correspondinglyslow the pace of our capital expenditures.Finally,we continua

290、lly evaluate our cash needs and may decide it is best to raise additionalcapital or seek alternative financing sources to fund the rapid growth of our business,including through drawdowns on existing or newdebt facilities or financing funds.Conversely,we may also from time to time determine that it

291、is in our best interests to voluntarily repaycertain indebtedness early.Accordingly,we believe that our current sources of funds will provide us with adequate liquidity during the 12-month periodfollowing March 31,2025,as well as in the long-term.See the sections below for more details regarding the

292、 material requirements for cash in our business and our sources of liquidity tomeet such needs.Material Cash RequirementsFrom time to time in the ordinary course of business,we enter into agreements with vendors for the purchase of components andraw materials to be used in the manufacture of our pro

293、ducts.However,due to contractual terms,variability in the precise growth curves ofour development and production ramps,and opportunities to renegotiate pricing,we generally do not have binding and enforceablepurchase orders under such contracts beyond the short-term,and the timing and magnitude of p

294、urchase orders beyond such period isdifficult to accurately project.31Table of ContentsAs discussed in and subject to the considerations referenced in Part I,Item 2,Managements Discussion and Analysis of FinancialCondition and Results of OperationsManagement Opportunities,Challenges and Uncertaintie

295、s and 2025 OutlookCash Flow andCapital Expenditure Trends in this Quarterly Report on Form 10-Q,we currently expect our capital expenditures to support our projectsglobally to exceed$10.00 billion in 2025.Changes in trade policy may necessitate adjustments to our project timelines,potentiallyimpacti

296、ng our capital expenditure expectations.As of March 31,2025,we and our subsidiaries had outstanding$7.27 billion in aggregate principal amount of indebtedness,ofwhich$2.17 billion is current.For details regarding our indebtedness,refer to Note 7,Debt,to the consolidated financial statementsincluded

297、elsewhere in this Quarterly Report on Form 10-Q.Sources and Conditions of LiquidityOur 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,interest income,and proceeds from

298、debt facilities and equity offerings,whenapplicable.As of March 31,2025,we had$16.35 billion and$20.64 billion of cash and cash equivalents and short-term investments,respectively.Balances held in foreign currencies had a U.S.dollar equivalent of$2.81 billion and consisted primarily of Chinese yuan

299、andeuros.We had$5.00 billion of unused committed credit amounts as of March 31,2025.For details regarding our indebtedness,refer toNote 7,Debt,to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.We continue adapting our strategy to meet our liquidity and

300、 risk objectives,such as investing in U.S.government securities andother investments,investing in autonomy,further vertically integrating our supply chain,expanding our product roadmap and providingfinancing options to our customers.Summary of Cash Flows Three Months Ended March 31,(Dollars in milli

301、ons)20252024Net cash provided by operating activities$2,156$242 Net cash used in investing activities$(1,651)$(5,084)Net cash(used in)provided by financing activities$(332)$196 Cash Flows from Operating ActivitiesNet cash provided by operating activities increased by$1.91 billion to$2.16 billion dur

302、ing the three months ended March 31,2025from$242 million during the three months ended March 31,2024.This increase was primarily due to favorable changes in net operatingassets and liabilities of$2.11 billion,partially offset by a decrease in net income excluding non-cash expenses,gains and losses o

303、f$193million.Cash Flows from Investing ActivitiesNet cash flows from investing activities and their variability across each period related primarily to capital expenditures,whichwere$1.49 billion and$2.78 billion for the three months ended March 31,2025 and 2024,respectively,mainly for AI-related ca

304、pitalexpenditures,global factory expansion,machinery and equipment as we expand and enhance our product roadmap.We also purchased$159 million and$2.31 billion of short-term investments,net of proceeds from maturities and sales,for the three months ended March 31,2025 and 2024,respectively.Cash Flows

305、 from Financing ActivitiesNet cash flows from financing activities changed by$528 million to$332 million net cash outflows during the three months endedMarch 31,2025 from$196 million net cash inflows during the three months ended March 31,2024.The decrease was primarily due to a$710 million increase

306、 in repayments of debt and a$151 million decrease in proceeds from issuances of debt.See Note 7,Debt,to theconsolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details regarding our debtobligations.Additionally,the decrease was partially offset by a$

307、101 million decrease in payments for buy-outs of noncontrolling interestsin subsidiaries and$101 million of proceeds received from directors in shareholder settlement net of payment for related legal fees duringthe three months ended March 31,2025.32Table of ContentsITEM 3.QUANTITATIVE AND QUALITATI

308、VE DISCLOSURES ABOUT MARKET RISKForeign Currency RiskWe transact business globally in multiple currencies and hence have foreign currency risks related to our revenue,costs of revenueand operating expenses denominated in currencies other than the U.S.dollar(primarily the Chinese yuan and euro in rel

309、ation to ourcurrent 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 operating results as expressed in U.S.dollars as we do not typically hedge foreign currency risk.We have also ex

310、perienced,and will continue to experience,fluctuations in our net income as a result of gains(losses)on thesettlement and the re-measurement of monetary assets and liabilities denominated in currencies that are not the local currency(primarilyconsisting of our intercompany and cash and cash equivale

311、nts balances).We considered the historical trends in foreign currency exchange rates and determined that it is reasonably possible that adversechanges in foreign currency exchange rates of 10%for all currencies could be experienced in the near-term.These changes were appliedto our total monetary ass

312、ets and liabilities denominated in currencies other than our local currencies at the balance sheet date to computethe impact these changes would have had on our net income before income taxes.These changes would have resulted in a gain or loss of$1.14 billion at March 31,2025 and$1.15 billion at Dec

313、ember 31,2024,assuming no foreign currency hedging.ITEM 4.CONTROLS AND PROCEDURESEvaluation of Disclosure Controls and ProceduresOur management,with the participation of our Chief Executive Officer and our Chief Financial Officer,evaluated the effectivenessof our disclosure controls and procedures p

314、ursuant to Rule 13a-15 under the Securities Exchange Act of 1934,as amended(the“ExchangeAct”).In designing and evaluating the disclosure controls and procedures,our management recognizes that any controls and procedures,no matter how well designed and operated,can provide only reasonable assurance o

315、f achieving the desired control objectives.In addition,the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that our management isrequired to apply its judgment in evaluating the benefits of possible controls and procedures relative to their

316、costs.Based on this evaluation,our Chief Executive Officer and our Chief Financial Officer concluded that,as of March 31,2025,ourdisclosure controls and procedures were designed at a reasonable assurance level and were effective to provide reasonable assurance thatthe information we are required to

317、disclose in reports that we file or submit under the Exchange Act is recorded,processed,summarizedand reported within the time periods specified in the SEC rules and forms,and that such information is accumulated and communicated toour management,including our Chief Executive Officer and our Chief F

318、inancial Officer,as appropriate,to allow timely decisionsregarding required disclosures.Changes in Internal Control over Financial ReportingThere was no change in our internal control over financial reporting that occurred during the quarter ended March 31,2025,whichhas materially affected,or is rea

319、sonably likely to materially affect,our internal control over financial reporting.33Table of ContentsPART II.OTHER INFORMATIONITEM 1.LEGAL PROCEEDINGSFor a description of our material pending legal proceedings,please see Note 10,Commitments and Contingencies,to theconsolidated financial statements i

320、ncluded elsewhere in this Quarterly Report on Form 10-Q.ITEM 1A.RISK FACTORSOur operations and financial results are subject to various risks and uncertainties,including the factors discussed in Part I,Item 1A,Risk Factors in our Annual Report on Form 10-K for the year ended December 31,2024,which c

321、ould adversely affect our business,financial conditions and future results.Other than the risk factors set forth below,there have been no material changes from the riskfactors discussed in our Annual Report.We face risks associated with maintaining and expanding our international operations,includin

322、g unfavorable and uncertainregulatory,political,economic,tax,tariff,export controls and labor conditions.We are subject to legal and regulatory requirements,political uncertainty and social,environmental and economic conditions innumerous jurisdictions,including markets in which we generate signific

323、ant sales.We have little control over these matters which areinherently unpredictable.Our operations in such jurisdictions,particularly as a company based in the U.S.,with additional manufacturingoperations in China and Europe,create risks relating to conforming our products to regulatory and safety

324、 requirements and charging andother electric infrastructures;organizing local operating entities;establishing,staffing and managing foreign business locations;attractinglocal customers;navigating U.S.and foreign government taxes,regulations and permit requirements;enforceability of our contractualri

325、ghts;trade restrictions,customs regulations,tariffs and price or exchange controls;and preferences in foreign nations for domesticallymanufactured products.For example,we monitor tax legislation changes on a global basis,including changes arising as a result of theOrganization for Economic Cooperati

326、on and Developments multi-jurisdictional plan of action to address base erosion and profit shifting.Further,the United States has recently announced changes to U.S.trade policy,including increasing tariffs on imports,in many casessignificantly,and potentially renegotiating or terminating existing tr

327、ade agreements.The exact scope of any such tariffs that willultimately be implemented is not known at this time,and the impacts on our business and costs of our products is uncertain.Retaliatorytariffs imposed by other countries on U.S.exports,further increases in U.S.tariffs,and the uncertainties s

328、urrounding domestic and foreigntariffs could also adversely impact demand for our products.We cannot predict whether,and to what extent,there may be changes tointernational trade agreements,such as those with China,or whether,or to what extent,quotas,duties,additional tariffs,export controls orother

329、 restrictions will be changed or imposed by the United States or by other countries.Historically,past U.S.special tariff actions haveincreased our costs for vehicles manufactured in the United States and increased costs for those same vehicles when exported from theUnited States.Further,as it pertai

330、ns to electric vehicles and lithium-ion batteries for our energy storage products,while the Company hascontinuously aimed for a strong domestic supply chain,certain parts and components are difficult or impossible to source within theUnited States.A change on any of these conditions may increase our

331、 costs,impact our ability to sell our products and require significantmanagement attention,and may harm our business,prospects,financial condition and operating results if we are unable to manage themeffectively.We will need to maintain public credibility and confidence in our long-term business pro

332、spects in order to succeed.In order to maintain and grow our business,we must maintain credibility and confidence among customers,suppliers,analysts,investors,ratings agencies and other parties in our long-term financial viability and business prospects.Maintaining such confidence maybe challenging

333、due to our limited operating history relative to established competitors;customer unfamiliarity with our products;anydelays we may experience in scaling manufacturing,delivery and service operations to meet demand;competition and uncertaintyregarding the future of electric vehicles or our other products and services;our quarterly production and sales performance compared withmarket expectations;an