Table of ContentsITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OFOPERATIONSThe following discussion and analysis should be read in conjunction with the consolidated financial statements and therelated notes included elsewhere in this Quarterly Report on Form 10-Q.OverviewOur mission is to accelerate the world’s transition to sustainable energy. We design, develop, manufacture, lease and sellhigh-performance fully electric vehicles, solar energy generation systems and energy storage products. We also offermaintenance, installation, operation, charging, insurance, financial and other services related to our products. Additionally, weare increasingly focused on products and services based on AI, robotics and automation.In 2024, we produced approximately 1,314,000 consumer vehicles and delivered approximately 1,294,000 consumervehicles through the third quarter. We are focused on profitable growth, including by leveraging existing factories andproduction lines to introduce new and more affordable products, further improving and deploying our FSD capabilities,including through our planned robotaxi product, reducing costs, increasing vehicle production, utilized capacity and deliverycapabilities, improving and developing our vehicles and battery technologies, vertically integrating and localizing our supplychain, and expanding our global infrastructure, including our service and charging infrastructure.In 2024, we deployed 20.41 GWh of energy storage products through the third quarter. We are focused on ramping theproduction and increasing the market penetration of our energy storage products.During the three and nine months ended September 30, 2024, we recognized total revenues of $25.18 billion and$71.98 billion, respectively, representing increases of $1.83 billion and $377 million, respectively, compared to the sameperiods in the prior year. During the three and nine months ended September 30, 2024, our net income attributable to commonstockholders was $2.17 billion and $4.77 billion, respectively, representing an increase of $314 million and a decrease of $2.30billion, respectively, compared to the same periods in the prior year. We continue to ramp production and build and optimizeour manufacturing capacity, expand our operations while focusing on further cost reductions and operational efficiencies toenable increased deliveries and deployments of our products, and invest in research and development to accelerate our AI,software, and fleet-based profits for further revenue growth.We ended the third quarter of 2024 with $33.65 billion in cash and cash equivalents and investments, representing anincrease of $4.55 billion from the end of 2023. Our cash flows provided by operating activities were $10.11 billion during thenine months ended September 30, 2024, compared to $8.89 billion during the same period ended September 30, 2023,representing an increase of $1.22 billion. Capital expenditures amounted to $8.56 billion during the nine months endedSeptember 30, 2024, compared to $6.59 billion during the same period ended September 30, 2023, representing an increase of$1.96 billion. Overall growth has allowed our business to generally fund itself, and we will continue investing in a number ofcapital-intensive projects and research and development in upcoming periods.Management Opportunities, Challenges and Uncertainties and 2024 OutlookAutomotive—ProductionThe following is a summary of the status of production of each of our announced vehicle models in production andunder development, as of the date of this Quarterly Report on Form 10-Q:Production Location Vehicle Model(s) Production StatusFremont Factory Model S / Model X ActiveModel 3 / Model Y ActiveGigafactory Shanghai Model 3 / Model Y ActiveGigafactory Berlin-Brandenburg Model Y ActiveGigafactory Texas Model Y ActiveCybertruck ActiveGigafactory Nevada Tesla Semi Pilot productionV arious Next Generation Platform In developmentTBD Roadster In