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Below is an excerpt from Tesla's 2020 10-K Cash Flow Statement. Calculate and compare Tesla's FY2020 Free Cash Flow and Tesla's FY2018 Free Cash Flow.

Below is an excerpt from Tesla's 2020 10-K Cash Flow Statement. Calculate and compare Tesla's FY2020 Free Cash Flow and Tesla's FY2018 Free Cash Flow. Assume Expected Capex relates only to historical property and equipment excluding finance leases net of sales. Which of the below is correct.

TESLA 2020 SEC Form 10-K Cash Flow Statement ($ in mlns):image text in transcribed

Tesla's 2020 Free Cash Flow is approximately $5,943 mln and has increased $3,845 mln since 2018.

Tesla's 2020 Free Cash Flow is approximately $1,708 mln higher than 2018 Free Cash flow and has remained positive.

Tesla's 2020 Free Cash flow is approximately $9,100 mln and has gone from positive to negative since 2018.

Tesla's 2020 Free Cash Flow is approximately $2,789 mln higher than 2018 Free Cash Flow and has gone from negative to positive.

Year Ended December 31, 2020 2019 2018 862 S (775) $ (1,063) 2,322 1,734 180 202 117 114 228 2,154 898 188 193 146 (48) 186 1,901 749 159 85 162 (2) 49 (188) Cash Flows from Operating Activities Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, amortization and impairment Stock-based compensation Amortization of debt discounts and issuance costs Inventory and purchase commitments write-downs Loss on disposals of fixed assets Foreign currency transaction net loss (gain) Non-cash interest and other operating activities Operating cash flow related to repayment of discounted convertible senior notes Changes in operating assets and liabilities, net of effect of business combinations: Accounts receivable Inventory Operating lease vehicles Prepaid expenses and other current assets Other non-current assets Accounts payable and accrued liabilities Deferred revenue Customer deposits Other long-term liabilities Net cash provided by operating activities Cash Flows from Investing Activities Purchases of property and equipment excluding finance leases, net of sales Purchases of solar energy systems, net of sales Receipt of government grants Purchase of intangible assets Business combinations, net of cash acquired Net cash used in investing activities (367) (429) (764) (288) (652) (422) (1,072) (251) (344) 2,102 321 7 495 5,943 115 646 801 (58) (5) 2,405 (497) (1,023) (215) (82) (207) 1,797 406 (96) (25) 2,098 (2,101) (218) (3,157) (75) 123 (10) (13) (3,132) (1,327) (105) 46 (5) (45) (1,436 (18) (2,337)

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