2017 Q4 Form 10-K Financial Statement

#000156459018002956 Filed on February 23, 2018

View on sec.gov

Income Statement

Concept 2017 Q4 2017 2016 Q4
Revenue $3.288B $11.76B $2.285B
YoY Change 43.93% 67.98% 88.13%
Cost Of Revenue $2.849B $9.536B $1.849B
YoY Change 54.08% 76.56% 85.64%
Gross Profit $438.8M $2.223B $435.3M
YoY Change 0.81% 39.0% 99.15%
Gross Profit Margin 13.34% 18.9% 19.05%
Selling, General & Admin $682.0M $2.477B $456.0M
YoY Change 49.56% 72.95% 57.79%
% of Gross Profit 155.43% 111.43% 104.76%
Research & Development $355.0M $1.378B $246.0M
YoY Change 44.31% 65.15% 29.47%
% of Gross Profit 80.91% 61.99% 56.52%
Depreciation & Amortization $470.0M $769.3M $327.0M
YoY Change 43.73% 61.18% 127.08%
% of Gross Profit 107.11% 34.61% 75.12%
Operating Expenses $1.037B $3.855B $702.0M
YoY Change 47.72% 70.08% 46.56%
Operating Profit -$598.2M -$1.632B -$266.7M
YoY Change 124.28% 144.55% 2.41%
Interest Expense -$52.00M $471.0M -$41.00M
YoY Change 26.83% 136.91% 7.89%
% of Operating Profit
Other Income/Expense, Net -$130.0M -$125.0M $99.00M
YoY Change -231.31% -212.34% -682.35%
Pretax Income -$780.0M -$2.209B -$208.0M
YoY Change 275.0% 195.97% -33.97%
Income Tax -$732.0M $32.00M $11.00M
% Of Pretax Income
Net Earnings -$675.4M -$1.961B -$121.3M
YoY Change 456.59% 190.61% -62.13%
Net Earnings / Revenue -20.54% -16.68% -5.31%
Basic Earnings Per Share -$11.83
Diluted Earnings Per Share -$267.3K -$11.83 -$52.00K
COMMON SHARES
Basic Shares Outstanding 166.0M 149.9M
Diluted Shares Outstanding 166.0M

Balance Sheet

Concept 2017 Q4 2017 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.368B $3.368B $3.393B
YoY Change -0.74% -0.74% 183.46%
Cash & Equivalents $3.368B $3.368B $3.393B
Short-Term Investments
Other Short-Term Assets $423.0M $423.0M $300.0M
YoY Change 41.0% 41.0% 115.83%
Inventory $2.264B $2.264B $2.067B
Prepaid Expenses
Receivables $515.4M $515.0M $499.1M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $6.571B $6.571B $6.260B
YoY Change 4.96% 4.97% 125.01%
LONG-TERM ASSETS
Property, Plant & Equipment $10.03B $20.49B $5.983B
YoY Change 67.6% 36.28% 15.17%
Goodwill $60.24M
YoY Change
Intangibles $361.5M $376.1M
YoY Change -3.89%
Long-Term Investments
YoY Change
Other Assets $273.1M $715.0M $216.8M
YoY Change 26.01% 47.42% 263.23%
Total Long-Term Assets $22.08B $22.08B $16.40B
YoY Change 34.63% 34.63% 210.34%
TOTAL ASSETS
Total Short-Term Assets $6.571B $6.571B $6.260B
Total Long-Term Assets $22.08B $22.08B $16.40B
Total Assets $28.66B $28.66B $22.66B
YoY Change 26.44% 26.43% 180.92%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.390B $2.390B $1.860B
YoY Change 28.48% 28.49% 103.06%
Accrued Expenses $1.731B $1.325B $1.210B
YoY Change 43.08% 25.35% 186.2%
Deferred Revenue $1.015B
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $897.0M $897.0M $1.150B
YoY Change -22.0% -22.0% 83.12%
Total Short-Term Liabilities $7.675B $7.675B $5.827B
YoY Change 31.71% 31.71% 106.9%
LONG-TERM LIABILITIES
Long-Term Debt $9.418B $9.418B $5.978B
YoY Change 57.54% 57.54% 189.07%
Other Long-Term Liabilities $2.443B $5.930B $4.954B
YoY Change -50.69% 19.7% 1257.35%
Total Long-Term Liabilities $2.443B $15.35B $10.93B
YoY Change -77.65% 40.4% 2895.27%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.675B $7.675B $5.827B
Total Long-Term Liabilities $2.443B $15.35B $10.93B
Total Liabilities $23.02B $24.42B $17.91B
YoY Change 28.54% 36.33% 158.2%
SHAREHOLDERS EQUITY
Retained Earnings -$4.974B -$2.997B
YoY Change 65.96% 29.06%
Common Stock $9.178B $7.774B
YoY Change 18.06% 128.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.237B $4.237B $4.753B
YoY Change
Total Liabilities & Shareholders Equity $28.66B $28.66B $22.66B
YoY Change 26.44% 26.43% 180.91%

Cashflow Statement

Concept 2017 Q4 2017 2016 Q4
OPERATING ACTIVITIES
Net Income -$675.4M -$1.961B -$121.3M
YoY Change 456.59% 190.61% -62.13%
Depreciation, Depletion And Amortization $470.0M $769.3M $327.0M
YoY Change 43.73% 61.18% 127.08%
Cash From Operating Activities $510.0M -$61.00M -$448.0M
YoY Change -213.84% -50.81% 1444.83%
INVESTING ACTIVITIES
Capital Expenditures -$906.0M $3.415B -$681.0M
YoY Change 33.04% 166.63% 65.69%
Acquisitions $115.0M
YoY Change -133.56%
Other Investing Activities -$6.000M -$115.0M $421.0M
YoY Change -101.43% -132.03% -14133.33%
Cash From Investing Activities -$912.0M -$4.196B -$259.0M
YoY Change 252.12% 288.13% -37.59%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $400.0M
YoY Change -76.49%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 286.0M 4.415B 1.373B
YoY Change -79.17% 17.92% 507.52%
NET CHANGE
Cash From Operating Activities 510.0M -61.00M -448.0M
Cash From Investing Activities -912.0M -4.196B -259.0M
Cash From Financing Activities 286.0M 4.415B 1.373B
Net Change In Cash -116.0M 198.0M 666.0M
YoY Change -117.42% -92.18% -405.5%
FREE CASH FLOW
Cash From Operating Activities $510.0M -$61.00M -$448.0M
Capital Expenditures -$906.0M $3.415B -$681.0M
Free Cash Flow $1.416B -$3.476B $233.0M
YoY Change 507.73% 147.44% -39.01%

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1857594000
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165000000
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511321000
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1196908000
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CY2017 us-gaap Noncash Or Part Noncash Acquisition Value Of Assets Acquired1
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InterestPaid
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InterestPaid
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CY2017 us-gaap Nature Of Operations
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<div> <p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Note 1 &#8211; Overview</p> <p style="margin-top:4pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:5.24%;">Tesla, Inc. (&#8220;Tesla&#8221;, the &#8220;Company&#8221;, &#8220;we&#8221;, &#8220;us&#8221; or &#8220;our&#8221;) was incorporated in the State of Delaware on July&#160;1, 2003. We design, develop, manufacture and sell high-performance fully electric vehicles and design, manufacture, install and sell solar energy generation and energy storage products. Our Chief Executive Officer, as the chief operating decision maker (&#8220;CODM&#8221;), organizes the Company, manages resource allocations and measures performance among two operating segments: (i) automotive and (ii) energy generation and storage.</p></div>
CY2017 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div> <p style="margin-top:13pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Reclassifications</p> <p style="margin-bottom:0pt;margin-top:4pt;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:5.24%;">Certain prior period balances have been reclassified to conform to the current period presentation in the consolidated financial statements and the accompanying notes.</p></div>
CY2017 us-gaap Use Of Estimates
UseOfEstimates
<div> <p style="margin-bottom:0pt;margin-top:13pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Use of Estimates</p> <p style="margin-bottom:0pt;margin-top:4pt;letter-spacing:-0.1pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:5.24%;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures in the accompanying notes. Estimates are used for, but not limited to, determining the selling price of products and services in multiple element revenue arrangements and determining the amortization period of these elements, the collectability of accounts receivable, inventory valuation, fair value of long-lived assets, fair value of financial instruments, residual value of operating lease vehicles, depreciable lives of property and equipment and solar energy systems, fair value and residual value of solar energy systems subject to leases, warranty liabilities, income taxes, contingencies, the accrued liability for solar energy system performance guarantees, determining lease pass-through financing obligations, the discount rates used to determine the fair value of investment tax credits, the valuation of build-to-suit lease assets, fair value of interest rate swaps and inputs used to value stock-based compensation. In addition, estimates and assumptions are used for the accounting for business combinations, including the fair values and useful lives of acquired assets, assumed liabilities and noncontrolling interests. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates.</p></div>
CY2017 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div> <p style="margin-top:13pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Concentration of Risk</p> <p style="margin-bottom:0pt;margin-top:4pt;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;text-indent:5.24%;">Credit Risk</p> <p style="margin-bottom:0pt;margin-top:4pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Financial instruments that potentially subject us to a concentration of credit risk consist of cash, cash equivalents, restricted cash, accounts receivable and interest rate swaps. Our cash balances are primarily invested in money market funds or on deposit at high credit quality financial institutions in the U.S. At times, these deposits may be in excess of insured limits. As of December&#160;31, 2017, no entity represented 10% or more of our total accounts receivable balance. As of December&#160;31, 2016, one entity represented approximately 10% of our total accounts receivable balance. The risk of concentration for our interest rate swaps is mitigated by transacting with several highly-rated multinational banks.</p> <p style="margin-bottom:0pt;margin-top:13pt;text-indent:5.24%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Supply Risk</p> <p style="margin-bottom:0pt;margin-top:4pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are dependent on our suppliers, the majority of which are single source suppliers, and the inability of these suppliers to deliver necessary components of our products in a timely manner at prices, quality levels and volumes acceptable to us, or our inability to efficiently manage these components from these suppliers, could have a material adverse effect on our business, prospects, financial condition and operating results.</p></div>
CY2017 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div> <p style="margin-top:13pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Deferred Investment Tax Credit Revenue</p> <p style="margin-top:4pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:5.24%;">We have solar energy systems that are eligible for investment tax credits (&#8220;ITCs&#8221;) that accrue to eligible property under the Internal Revenue Code (&#8220;IRC&#8221;). Under Section&#160;50(d)(5) of the IRC and the related regulations, a lessor of qualifying property may elect to treat the lessee as the owner of such property for the purposes of claiming the ITCs associated with such property. These regulations enable the ITCs to be separated from the ownership of the property and allow the transfer of the ITCs. Under our lease pass-through fund arrangements, we can make a tax election to pass-through the ITCs to the investors, who are the legal lessee of the property. Therefore, we are able to monetize these ITCs to the investors who can utilize them in return for cash payments. We consider the monetization of ITCs to constitute one of the key elements of realizing the value associated with solar energy systems. Consequently, we consider the proceeds from the monetization of ITCs to be a component of revenue generated from solar energy systems.</p> <p style="margin-top:9pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In accordance with the relevant FASB guidance, we recognize revenue from the monetization of ITCs when (1)&#160;persuasive evidence of an arrangement exists, (2)&#160;delivery has occurred or services have been rendered, (3)&#160;the sales price is fixed or determinable and (4)&#160;collection of the related receivable is reasonably assured. An ITC is subject to recapture under the IRC if the underlying solar energy system either ceases to be a qualifying property or undergoes a change in ownership within five&#160;years of its placed-in-service date; the recapture amount decreases on each anniversary of the placed-in-service date. Since we have an obligation to ensure that the solar energy system is in-service and operational for a term of five&#160;years in order to avoid any recapture of the ITC, we recognize revenue as the recapture amount decreases, assuming the other revenue recognition criteria above have been met. As a result, the monetized ITC is initially recorded as deferred revenue on the consolidated balance sheets, and subsequently, one-fifth of the monetized ITC is recognized as energy generation and storage revenue on the consolidated statement of operations on each anniversary of the solar energy system&#8217;s placed-in-service date over five&#160;years.</p> <p style="margin-top:9pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We indemnify the investors for any recapture of ITCs due to our non-compliance. We have concluded that the likelihood of a recapture event is remote, and consequently, we have not recognized a liability for this indemnification on the consolidated balance sheets.</p></div>
CY2016Q4 tsla Maximum Repurchase Price Of Vehicles Under Resale Value Arrangement
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855900000
CY2017Q4 tsla Resale Value Guarantees Current Portion Sales To Leasing Partners
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411600000
CY2017 us-gaap Number Of Operating Segments
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2
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0
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0.10
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Our leases are accounted for in accordance with ASC 840. To determine lease classification, we evaluate the lease terms to determine whether there is a transfer of ownership or bargain purchase option at the end of the lease, whether the lease term is greater than 75% of the useful life or whether the present value of the minimum lease payments exceed 90% of the fair value at lease inception.
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52300000
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26100000
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we also provide a warranty on the installation and components of the solar energy systems we sell for periods typically between 10 to 30 years.
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31366000
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79147000
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52760000
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4342000
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-20084000
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1470000
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248566000
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153766000
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3245000
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27284000
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0
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585019000
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378284000
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218792000
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185807000
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152897000
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52031000
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125502000
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116797000
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221052000
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84492000
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1731366000
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276289000
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149858000
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1665768000
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1323293000
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46820000
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36966000
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67929000
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84360000
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29713000
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76828000
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356451000
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220144000
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853900000
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1613856000
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858959000
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P10Y
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300000
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1340000000
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P3Y
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0.15
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2029000
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525000
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CY2015 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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CY2017 tsla Effective Income Tax Rate Reconciliation Change In Us Tax Law
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CY2015 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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CY2017 us-gaap Operating Leases Rent Expense Net
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CY2017Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
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CY2017Q4 us-gaap Capital Lease Obligations Noncurrent
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CY2017Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2017Q4 us-gaap Operating Leases Future Minimum Payments Due
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CY2017Q4 us-gaap Capital Leases Future Minimum Payments Due Current
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CY2017Q4 us-gaap Capital Leases Future Minimum Payments Due In Two Years
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CY2017Q4 us-gaap Capital Leases Future Minimum Payments Due In Three Years
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CY2017Q4 us-gaap Capital Leases Future Minimum Payments Due In Four Years
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CY2017Q4 us-gaap Capital Leases Future Minimum Payments Due In Five Years
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CY2017Q4 us-gaap Capital Leases Future Minimum Payments Due Thereafter
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CY2017Q4 us-gaap Capital Leases Future Minimum Payments Due
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CY2017Q4 us-gaap Capital Leases Future Minimum Payments Interest Included In Payments
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CY2017Q4 us-gaap Capital Lease Obligations
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CY2017Q4 us-gaap Capital Lease Obligations Current
CapitalLeaseObligationsCurrent
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CY2017 tsla Site Contingency Cost To Be Paid By Company
SiteContingencyCostToBePaidByCompany
15000000
CY2017 tsla Site Contingency Cost To Be Paid In Excess By Company
SiteContingencyCostToBePaidInExcessByCompany
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CY2017Q4 us-gaap Letters Of Credit Outstanding Amount
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CY2017 tsla Number Of Lease Financing Obligations
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CY2017 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
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CY2017Q4 us-gaap Noncurrent Assets
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CY2016Q4 us-gaap Noncurrent Assets
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