Statement of Cash Flows 11. What is the general purpose of the cashflow statement? Can you explain each of the three different components of the cash flow statement and how Tesla is performing in each of these in terms of its cash position in Quarter Three 2020? 12. What are the patterns that we can see in the cashflow of Tesla when compared to the previous quarters in fiscal year 2020? In your opinion, do you think management is doing a good job at handling the cash position of the company? STATEMENT OF CASH FLOWS (Unaudited) Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 150 132 68 129 369 In millions of USD CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation, amortization and impairment Stock-based compensation Other Changes in operating assets and liabilities, net of effect of business combinations Net cash provided by (used in) operating activities 530 577 553 567 584 199 281 347 543 211 175 204 69 (192) 756 231 1,425 (1,447) (440) 167 (246) 964 269 635 2,400 (385) (25) (412) (37) (455) (26) (546) (20) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of solar energy systems, net of sales Purchase of intangible assets Receipt of government grants Business combinations, net of cash acquired Net cash used in investing activities (1,005) (16) (5) 46 1 (76) (486) (403) (480) (13) (1,039) (566) (591) (87) 478 164 (71) (55) (83) 183 30 (28) CASH FLOWS FROM FINANCING ACTIVITIES Net cash flows from debt activities Collateralized lease repayments Net borrowings (repayments) under vehicle and solar financing Net cash flows from noncontrolling interests - Auto Net cash flows from noncontrolling interests - Solar Proceeds from issuances of common stock in public offerings, net of issuance costs Other Net cash provided by (used in) financing activities 18 544 (97) (160) (8) (40) 2,309 (630) (56) 99 (31) (49) 19 (3) (42) 6 4,973 144 71 160 57 96 (79) 118 2,708 123 4,450 14 38 957 559 Effect of exchange rate changes on cash and cash equivalents and restricted cash Net increase in cash and cash equivalents and restricted cash Cash and cash equivalents and restricted cash at beginning of period Cash and cash equivalents and restricted cash at end of period (11) 377 5,449 5,826 (24) 1,764 6,783 8,547 86 5,897 9,106 5,826 8,547 6,783 9,106 15,003