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Table of Contents
Significant operating cash outflows for the year ended December 31, 2013 were primarily related to $1.56 billion of cost of revenues, a
$463.3 million increase in inventory and operating lease vehicles, $517.5 million of operating expenses, and a $17.5 million increase in prepaid
expenses and other current assets, partially offset by a $66.3 million increase in accounts payable and accrued liabilities primarily due to the
timing of vendor payments.
Net cash used in operating activities was $266.1 million during the year ended December 31, 2012. The largest component of our cash
used during this period related to our net loss of $396.2 million, which included non-cash charges of $50.1 million related to stock-based
compensation expense, $28.8 million related to depreciation and amortization and $4.9 million related to inventory write-downs and adverse
purchase commitments. Significant operating cash outflows were primarily related to $424.4 million of operating expenses, a $194.7 million
increase in inventory and operating lease vehicles and $383.2 million of cost of revenues, partially offset by a $197.4 million increase in
accounts payable and accrued liabilities, and a $1.1 million decrease in prepaid expenses and other current assets.
Inventory increased to meet our planned production requirements for Model S and powertrain component and system sales while the net
increase in accounts payable and accrued liabilities was due to both the growth of our business and the timing of vendor payments.
Significant operating cash inflows for the year ended December 31, 2012 were comprised primarily of automotive sales of $385.7 million,
a $47.1 million net increase in customer deposits and $27.6 million of development services revenue.
Net cash used in operating activities was $128.0 million for the year ended December 31, 2011. The largest component of our cash used
during this period related to our net loss of $254.4 million, which included non-cash charges of $29.4 million related to stock-based
compensation expense, $16.9 million related to depreciation and amortization and $2.8 million related to the fair value change in our warrant
liability. Significant operating cash outflows were primarily related to $313.1 million of operating expenses, $142.6 million of cost of revenues
and a $13.6 million increase in inventory and operating lease vehicles, partially offset by a $30.5 million increase in accounts payable and
accrued liabilities, and a $2.6 million increase in other long-term liabilities. Inventory increased to meet our production requirements for the
Tesla Roadster as we planned for the final production of the Tesla Roadster and powertrain component sales as well as leasing activities. The
increase in accounts payable and accrued liabilities was due to both the growth of our business and the timing of vendor payments.
Significant operating cash inflows during the year ended December 31, 2011 were comprised primarily of automotive sales of $148.6
million, $55.7 million of development services revenue and a $61.0 million net increase in customer deposits, partially offset by a $2.8 million
increase in accounts receivable and a $1.9 million decrease in deferred revenue. The increase in accounts receivable was related primarily to
receivables from Toyota for shipments of powertrain components under the Toyota RAV4 EV Phase 1 contract services agreement and
shipments of battery packs and chargers to Daimler under the Daimler Smart fortwo and A-Class EV programs.
Cash Flows from Investing Activities
Cash flows from investing activities primarily relate to capital expenditures to support our growth in operations, including investments in
Model S manufacturing and our stores, service and Supercharger network infrastructure, as well as restricted cash that we were required to
maintain in relation to our DOE Loan Facility, facility lease agreements, equipment financing, and certain vendor credit policies.
Net cash used in investing activities was $249.4 million during the year ended December 31, 2013 primarily related to $264.2 million in
purchases of capital equipment and tooling to support our manufacturing facility and expand our store, service and a Supercharger network,
including $18.5 million related to the purchase of
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