For this assignment I selected Telsa Motors, Inc (TSLA). Based on the below Income Statement Telsa has made significant progress in total revenue throughout the years. The green incentive program and tax deductions may have sparked the increase in total gross profit between 2013 and 2015. However, with oil and gas prices declining, the excitement around electric cars has somewhat died down. What excites me as an investor is that Tesla continues to be in the forefront creating new innovative vehicles. Despite huge sales, Tesla has remained unprofitable since it went public in 2010. Both the income statement and balance sheet shows that the company is burning lots of cash. This is the cost of rapid expansion. While it's the company's heavy spending that has continued to open up the doors to incrementally more growth opportunities, the company's negative free cash flow. In the past 12 months, Tesla stock (TSLA) has climbed nearly 25% despite falling by 4% earlier this year. The drop came after the company posted a net loss of $889 million in 2015.
In recent news, Tesla has plans to build 500,000 new Model 3 cars in 2018. This sparks slight concerns after they reported first quarter financial results and its net loss widened to $282.3 million from $154.2 million in the same period in 2015. However, this may be a stock to watch in the upcoming years as already 400,000 people have submitted their $1,000 down payment for the new Model 3 which is still in prototype status.
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