nment #1 (Due November 8)

1. On January 31, 2023 Tesla filed with the Securities and Exchange Commission a 10-K or Annual report for year ending December 31, 2022. Go to sec.gov and download the Excel spreadsheet with these results. You will only need two tabs to complete this question the Consolidated Balance Sheets (tab 2) and Consolidated Statements of Operations (tab 4).

a. Teslas income statement summarizes two streams of revenue -- automotive and energy generation. Calculate the year-over-year historical growth for each of these streams as well as the aggregate growth over the last two years. Present the results in a table in your MS Word file.

b. Tesla is clearly a growth stock and forecasting the revenue growth is a daunting task so instead find out what the experts say. Look up Tesla in Yahoo!finance. Once you are at the summary page choose the analysis tab and find the revenue growth projections from equity analysts following the stock. What is the average estimated sales growth in 2023 and 2024?

c. Calculate the common sized income statement (by dividing each line item from the top line ie total revenues to the bottom line ie Net income by total sales) for the fiscal year 2022, 2021 and 2020. Using the average common sized line items create a pro forma income statement for 2023 using the estimated growth found in part b.

d. What is your projected 2023 net income?

e. Create a pro forma balance sheet for 2023 assuming all line items except capital structure decisions vary with sales. To do this calculate the common sized (by dividing each line item by total sales) balance sheet for the fiscal year 2022 and 2021. While most items on the asset side of the balance sheet will increase proportionally with sale, most items on the liabilities and shareholder equity side will not. For simplicity assume all line items on the asset side vary with sales and none of the liabilities/share equity line items vary with sales with the exception of accumulate deficit. Tesla does not pay dividends and until recently consistently generated operating losses which are reported on the balance sheet as accumulated deficit using a similar calculation to accumulated retained earnings. This line item should be updated consistent with the 2023 pro forma income statement. What is the external financing need of Tesla in 2023?