Table of ContentsAs of September 30, 2024 and December 31, 2023, the total outstanding balance of MyPower customer notes receivable,net of allowance for expected credit losses, was $250 million and $266 million, respectively, of which $5 million was due in thenext 12 months. As of September 30, 2024 and December 31, 2023, the allowance for expected credit losses was $36 million.Concentration of RiskCredit RiskFinancial instruments that potentially subject us to a concentration of credit risk consist of cash, cash equivalents,investments, restricted cash, accounts receivable and other finance receivables. Our cash and investments balances areprimarily on deposit at high credit quality financial institutions or invested in highly rated, investment-grade securities. Thesedeposits are typically in excess of insured limits. As of September 30, 2024 and December 31, 2023, no entity represented 10%or more of our total receivables balance.Supply RiskWe are dependent on our suppliers, including single source suppliers, and the inability of these suppliers to delivernecessary components of our products in a timely manner at prices, quality levels and volumes acceptable to us, or our inabilityto efficiently manage these components from these suppliers, could have a material adverse effect on our business, prospects,financial condition and operating results.WarrantiesAccrued warranty activity consisted of the following (in millions):Three Months Ended September 30, Nine Months Ended September 30,2024 2023 2024 2023Accrued warranty - beginning of period$ 5,795 $ 4,465 $ 5,152 $ 3,505Warranty costs incurred (380) (335) (1,048) (911)Net changes in liability for pre-existing warranties,including expirations and foreign exchange impact 231 15 295 426Provision for warranty 717 577 1,964 1,702Accrued warranty - end of period$ 6,363 $ 4,722 $ 6,363 $ 4,722Recent Accounting PronouncementsRecently issued accounting pronouncements not yet adoptedIn November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosurerequirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the ChiefOperating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU alsorequires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODMuses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocateresources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal yearsbeginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in thefinancial statements. Early adoption is also permitted. This ASU will likely result in us including the additional requireddisclosures when adopted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year endingDecember 31, 2024.14
tsla-20240930https://www.sec.gov/Archives/edgar/data/1318605/00016282802404...
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