Tesla Motors Financial Analysis
Tesla Motors, Inc.
Financial Analysis Project
Accounting II – Dr. Frazer
Themistoklis Tambassopoulos
Introduction
In this paper I intend to provide a sound financial analysis of Tesla Motors Incorporated. I will do so by calculating and providing liquidity, profitability, and solvency ratios and then evaluating those results. Assessment of these ratios will more or less define Tesla Motors’ abilities to meet its short-term debts and obligations (liquidity), performance in relation to sales, assets, and profits or losses (profitability), and the resulting income amount, after tax deductions, against the company’s liabilities (solvency). Additionally I will compare Tesla Motors’ financial position against that of General Motors Company to better describe how the company is performing within its industry. The Earth is in danger of rapidly overheating. Global warming is the widely accepted theory that states that the over production of air pollutants such as carbon dioxide will cause the Earth’s average temperature to rise annually until it reaches an irreversible threshold which will cause the planet to heat up so much it will become uninhabitable. Automobiles have been a major contributor to air pollution over the years. Gasoline fueled engines have churned out unimaginable amounts of gasses into the atmosphere adding to the problem. Until recently there have been no viable alternative vehicles to gasoline fueled cars. Even hybrid cars haven’t fully taken away the dependency for gasoline. Fully electric cars can reduce our dependency on fossil fuels, reduce greenhouse gas emissions, and hopefully reverse the damage done to Earth’s atmosphere. Tesla Motors is the electric car manufacturer paving the road to this greener world.
Background
Tesla Motors is a United States car manufacturing company based in Palo Alto California. The company was founded by Martin Eberhard and Marc
Financial Analysis Project
Accounting II – Dr. Frazer
Themistoklis Tambassopoulos
Introduction
In this paper I intend to provide a sound financial analysis of Tesla Motors Incorporated. I will do so by calculating and providing liquidity, profitability, and solvency ratios and then evaluating those results. Assessment of these ratios will more or less define Tesla Motors’ abilities to meet its short-term debts and obligations (liquidity), performance in relation to sales, assets, and profits or losses (profitability), and the resulting income amount, after tax deductions, against the company’s liabilities (solvency). Additionally I will compare Tesla Motors’ financial position against that of General Motors Company to better describe how the company is performing within its industry. The Earth is in danger of rapidly overheating. Global warming is the widely accepted theory that states that the over production of air pollutants such as carbon dioxide will cause the Earth’s average temperature to rise annually until it reaches an irreversible threshold which will cause the planet to heat up so much it will become uninhabitable. Automobiles have been a major contributor to air pollution over the years. Gasoline fueled engines have churned out unimaginable amounts of gasses into the atmosphere adding to the problem. Until recently there have been no viable alternative vehicles to gasoline fueled cars. Even hybrid cars haven’t fully taken away the dependency for gasoline. Fully electric cars can reduce our dependency on fossil fuels, reduce greenhouse gas emissions, and hopefully reverse the damage done to Earth’s atmosphere. Tesla Motors is the electric car manufacturer paving the road to this greener world.
Background
Tesla Motors is a United States car manufacturing company based in Palo Alto California. The company was founded by Martin Eberhard and Marc
References: 1. Financial & Managerial Accounting 16th Edition – Williams et al. 2. Yahoo Finance: Tesla Motors, Inc. (TSLA) – www.finance.yahoo.com 3. Tesla Motors Website – www.teslamotors.com