Tesla faces risks from fluctuating exchange rates impacting operating results due to global operations in multiple currencies. Supply chain dependence on single-source suppliers poses a risk to timely and cost-effective component delivery. Changes in government incentives, tariffs, and consumer trends, along with inflationary pressures and interest rate fluctuations, affect vehicle pricing and demand. Ongoing legal proceedings, including class actions and investigations, present potential financial losses. The document also notes uncertainty in future capital expenditures and the timing of purchase orders.
Financial Upside
Tesla anticipates revenue growth from increased automotive sales, particularly from Cybertruck and Model 3/Y production ramps. Energy generation and storage revenue is expected to increase due to Powerwall 3 and Megafactory expansions. Higher interest income from cash and investments is a positive factor. The company is focused on cost reductions, operational efficiencies, and vertical integration to improve profitability. Positive operating cash flow is expected to fund future growth and capital expenditures.
