Question

Analyzing and Interpreting Income Disclosures

Sales information for Tesla Inc. follows.

Year Ended December 31 ($ thousands)	2018	2017	2016
Automotive sales	$26,447,283	$14,509,078	$6,147,908
Automotive leasing	971,807	1,659,822	1,294,990
Total automotive revenues	27,419,090	16,168,900	7,442,898
Services and other	2,364,770	1,101,304	701,958
Total automotive & services and other segment revenue	29,783,860	17,270,204	8,144,856
Energy generation and storage segment revenue	2,332,866	1,897,652	199,533
Total revenues	$32,116,726	$19,167,856	$8,344,389

Automotive sales revenue includes revenues related to sale of new Model S, Model X and Model 3 vehicles, including access to our Supercharger network, internet connectivity, Autopilot, full self-driving and over-the-air software updates.

Automotive leasing revenue includes the amortization of revenue for Model S and Model X vehicles under direct lease agreements as well as those sold with resale value guarantees accounted for as operating leases under lease accounting. We do not yet offer leasing for Model 3 vehicles.

Services and other revenue consists of non-warranty after-sales vehicle services, sales of used vehicles, sales of electric vehicle components and systems to other manufacturers, retail merchandise, and sales by our acquired subsidiaries to third party customers.

Energy generation and storage revenues consists of the sale of solar energy systems and energy storage systems to residential, small commercial, and large commercial and utility grade customers.

Compute the relative size of sales revenue from the four types of revenue Tesla discloses. (Hint: Scale each type of revenue by total revenue.)
Round answers to the nearest whole percentage.

As % of Total Revenue	2018	2017	2016
Automotive sales	Answer	Answer	Answer
Automotive leasing	Answer	Answer	Answer
Services and other	Answer	Answer	Answer
Energy generation & storage	Answer	Answer	Answer

Compute the growth in sales revenue for both years from each of the four types of revenue.

• Round answers to the nearest whole percentage.
• Use a negative sign with answers, when appropriate.

% Growth	2018	2017
Automotive sales	Answer	Answer
Automotive leasing	Answer	Answer
Services and other	Answer	Answer
Energy generation & storage	Answer	Answer

Answer 1

	Year Ended December 31 ($ thousands)	2018	2017	2016
	Automotive sales	$          26,447,283	$          14,509,078	$            6,147,908
	Automotive leasing	$               971,807	$            1,659,822	$            1,294,990
	Services and other	$            2,364,770	$            1,101,304	$               701,958
	Energy generation and storage segment revenue	$            2,332,866	$            1,897,652	$               199,533
	Total revenues	$          32,116,726	$          19,167,856	$            8,344,389
a)	Relative size of sales revenue from the four types of revenue
	Calculation = Revenue for Revenue Type for particular year/Total Revenue for particular year
	As % of Total Revenue	2018	2017	2016
	Automotive sales	82.3%	75.7%	73.7%
	Automotive leasing	3.0%	8.7%	15.5%
	Services and other	7.4%	5.7%	8.4%
	Energy generation & storage	7.3%	9.9%	2.4%
b)	Growth in sales revenue for both years from each of the four types of revenue.
	Calculation = (Revenue for Revenue Type for particular year-Revenue for Revenue Type for previous year)/ Revenue for Revenue Type for previous year
	% Growth	2018	2017
	Automotive sales	82.3%	136.0%
	Automotive leasing	-41.5%	28.2%
	Services and other	114.7%	56.9%
	Energy generation & storage	22.9%	851.0%