Table of ContentsOur provision for income taxes increased by $434 million in the three months ended September 30, 2024 and increasedby $652 million in the nine months ended September 30, 2024 as compared to the three and nine months ended September 30,2023, respectively. Our effective tax rate increased from 8% to 22% in the three months ended September 30, 2024 andincreased from 10% to 23% in the nine months ended September 30, 2024 as compared to the three and nine months endedSeptember 30, 2023, respectively. These increases are primarily due to the impact of releasing the valuation allowance on ourU.S. deferred tax assets in the fourth quarter of 2023 and changes in mix of jurisdictional earnings.See Note 9, Income Taxes, to the consolidated financial statements included elsewhere in this Quarterly Report on Form10-Q for further details.Liquidity and Capital ResourcesWe expect to continue to generate net positive operating cash flow as we have done in the last five fiscal years. The cashwe generate from our core operations enables us to fund ongoing operations and production, our research and developmentprojects for new products and technologies including our proprietary battery cells, additional manufacturing ramps at existingmanufacturing facilities, the construction of future factories, and the continued expansion of our retail and service locations,body shops, Mobile Service fleet, Supercharger, including to support NACS, energy product installation capabilities andautonomy and other artificial intelligence enabled products.In addition, because a large portion of our future expenditures will be to fund our growth, we expect that if needed wewill be able to adjust our capital and operating expenditures by operating segment. For example, if our near-term manufacturingoperations decrease in scale or ramp more slowly than expected, including due to global economic or business conditions, wemay choose to correspondingly slow the pace of our capital expenditures. Finally, we continually evaluate our cash needs andmay decide it is best to raise additional capital or seek alternative financing sources to fund the rapid growth of our business,including through drawdowns on existing or new debt facilities or financing funds. Conversely, we may also from time to timedetermine that it is in our best interests to voluntarily repay certain indebtedness early.Accordingly, we believe that our current sources of funds will provide us with adequate liquidity during the 12-monthperiod following September 30, 2024, as well as in the long-term.See the sections below for more details regarding the material requirements for cash in our business and our sources ofliquidity to meet such needs.Material Cash RequirementsFrom time to time in the ordinary course of business, we enter into agreements with vendors for the purchase ofcomponents and raw materials to be used in the manufacture of our products. However, due to contractual terms, variability inthe precise growth curves of our development and production ramps, and opportunities to renegotiate pricing, we generally donot have binding and enforceable purchase orders under such contracts beyond the short-term, and the timing and magnitude ofpurchase orders beyond such period is difficult to accurately project.As discussed in and subject to the considerations referenced in Part I, Item 2, Management's Discussion and Analysis ofFinancial Condition and Results of Operations—Management Opportunities, Challenges and Uncertainties and 2024 Outlook—Cash Flow and Capital Expenditure Trends in this Quarterly Report on Form 10-Q, we currently expect our capitalexpenditures to support our projects globally to exceed $11.00 billion in 2024 and be between $8.00 to $10.00 billion in each ofthe following two fiscal years. We also have certain obligations in connection with our operations at Gigafactory New York andGigafactory Shanghai, as outlined in Part II, Item 7, Management's Discussion and Analysis of