Describe what stage of life cycle these relations suggest for Tesla Motors. Why are negative operating cash flows less than the net losses? Where is Tesla obtaining cash, and what are they doing with it? What do you think will happen with cash flows in 2013?

Exhibit 3.20 Tesla Motors Statement of Cash Flows (amounts in thousands) (Problem 3.17) Year Ended December 31, 2012 2011 2010 $(396,213) $(254,411) $(154,328) 28,825 1,854 56 50,145 10,623 5,022 16,919 2,750 (112) 29,419 1,504 4,929 345 1,828 21,156 (74) 8 951 Cash Flows From Operating Activities Net loss Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization Change in fair value of warrant liabilities Discounts and premiums on short-term marketable securities Stock-based compensation Excess tax benefits from stock-based compensation Loss on abandonment of fixed assets Inventory write-downs Changes in operating assets and liabilities Accounts receivable Inventories and operating lease vehicles Prepaid expenses and other current assets Other assets Accounts payable Accrued liabilities Deferred development compensation Deferred revenue Reservation payments Other long-term liabilities Net cash used in operating activities Cash Flows From Investing Activities Purchases of marketable securities Maturities of short-term marketable securities Payments related to acquisition of Fremont manufacturing facility and related assets Purchases of property and equipment excluding capital leases Withdrawals out of (transfers into our dedicated Department of Energy account, net Increase in other restricted cash Net cash used in investing activities Cash Flows From Financing Activities Proceeds from issuance of common stock in public offerings, net Proceeds from issuance of common stock in private placements (17,303) (194,726) 1,121 (482) 187,821 9,603 (2,829) (13,638) (248) (288) 19,891 10,620 (3,222) (28,513) (4,977) (463) (212) 13,345 (156) 4,801 4,707 3,515 (127,817) (526) 47,056 10,255 (266,081) (1,927) 61,006 2,641 (128,034) (14,992) 40,000 (64,952) 40,000 (65,210) (40,203) (239,228) (184,226) 8,620 (1,330) (206,930) 50,121 (3,201) (162,258) (73,597) (1,287) (180,297) 221,496 172,410 59,058 188,842 80,000 (Continued) Exhibit 3.20 (Continued) (416) 204,423 (315) 71,828 (2,832) 188,796 (12,710) 24,885 10,525 Principal payments on capital leases and other debt Proceeds from long-term debt and other long-term liabilities Principal payments on long-term debt Proceeds from exercise of stock options and other stock issuances Excess tax benefits from stock-based compensation Deferred common stock and loan facility issuance costs Net cash provided by financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 419,635 (53,376) 255,266 $ 201,890 446,000 155,708 99,558 $ 255,266 1,350 74 (3,734) 338,045 29,931 69,627 $ 99,558 Source: Tesla Motors, Inc., Form 10-K for the Fiscal Year Ended December 31, 2012