Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 07, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TSLA | ||
Security 12b Title | Common stock | ||
Security Exchange Name | NASDAQ | ||
Entity Registrant Name | Tesla, Inc. | ||
Entity Central Index Key | 0001318605 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 181,341,586 | ||
Entity Public Float | $ 31,540 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-34756 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 91-2197729 | ||
Entity Address, Address Line One | 3500 Deer Creek Road | ||
Entity Address, City or Town | Palo Alto | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94304 | ||
City Area Code | 650 | ||
Local Phone Number | 681-5000 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2020 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2019. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 6,268 | $ 3,686 |
Restricted cash | 246 | 193 |
Accounts receivable, net | 1,324 | 949 |
Inventory | 3,552 | 3,113 |
Prepaid expenses and other current assets | 713 | 366 |
Total current assets | 12,103 | 8,307 |
Property, plant and equipment, net | 10,396 | 11,330 |
Operating lease right-of-use assets | 1,218 | |
Intangible assets, net | 339 | 282 |
Goodwill | 198 | 68 |
MyPower customer notes receivable, net of current portion | 393 | 422 |
Restricted cash, net of current portion | 269 | 398 |
Other assets | 808 | 572 |
Total assets | 34,309 | 29,740 |
Current liabilities | ||
Accounts payable | 3,771 | 3,405 |
Accrued liabilities and other | 2,905 | 2,094 |
Deferred revenue | 1,163 | 630 |
Resale value guarantees | 317 | 503 |
Customer deposits | 726 | 793 |
Current portion of debt and finance leases | 1,785 | 2,568 |
Total current liabilities | 10,667 | 9,993 |
Debt and finance leases, net of current portion | 11,634 | 9,404 |
Deferred revenue, net of current portion | 1,207 | 991 |
Resale value guarantees, net of current portion | 36 | 329 |
Other long-term liabilities | 2,655 | 2,710 |
Total liabilities | 26,199 | 23,427 |
Commitments and contingencies (Note 16) | ||
Redeemable noncontrolling interests in subsidiaries | 643 | 556 |
Stockholders' equity | ||
Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | ||
Common stock; $0.001 par value; 2,000 shares authorized; 181 and 173 shares issued and outstanding as of December 31, 2019 and 2018, respectively | 0 | 0 |
Additional paid-in capital | 12,737 | 10,249 |
Accumulated other comprehensive loss | (36) | (8) |
Accumulated deficit | (6,083) | (5,318) |
Total stockholders' equity | 6,618 | 4,923 |
Noncontrolling interests in subsidiaries | 849 | 834 |
Total liabilities and equity | 34,309 | 29,740 |
Operating Lease Vehicles [Member] | ||
Current assets | ||
Operating lease net | 2,447 | 2,090 |
Solar Energy Systems [Member] | ||
Current assets | ||
Solar energy systems, net | $ 6,138 | $ 6,271 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 100,000,000 | 100,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock shares issued | 181,000,000 | 173,000,000 |
Common stock shares outstanding | 181,000,000 | 173,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Automotive leasing | $ 869 | $ 883 | $ 1,107 |
Total automotive revenues | 20,821 | 18,515 | 9,642 |
Services and other | 2,226 | 1,391 | 1,001 |
Total revenues | 24,578 | 21,461 | 11,759 |
Cost of revenues | |||
Automotive leasing | 459 | 488 | 708 |
Total automotive cost of revenues | 16,398 | 14,174 | 7,433 |
Services and other | 2,770 | 1,880 | 1,229 |
Total cost of revenues | 20,509 | 17,419 | 9,536 |
Gross profit | 4,069 | 4,042 | 2,223 |
Operating expenses | |||
Research and development | 1,343 | 1,460 | 1,378 |
Selling, general and administrative | 2,646 | 2,835 | 2,477 |
Restructuring and other | 149 | 135 | |
Total operating expenses | 4,138 | 4,430 | 3,855 |
Loss from operations | (69) | (388) | (1,632) |
Interest income | 44 | 24 | 19 |
Interest expense | (685) | (663) | (471) |
Other income (expense), net | 45 | 22 | (125) |
Loss before income taxes | (665) | (1,005) | (2,209) |
Provision for income taxes | 110 | 58 | 32 |
Net loss | (775) | (1,063) | (2,241) |
Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | 87 | (87) | (279) |
Net loss attributable to common stockholders | $ (862) | $ (976) | $ (1,962) |
Net loss per share of common stock attributable to common stockholders | |||
Basic | $ (4.92) | $ (5.72) | $ (11.83) |
Diluted | $ (4.92) | $ (5.72) | $ (11.83) |
Weighted average shares used in computing net loss per share of common stock | |||
Basic | 177 | 171 | 166 |
Diluted | 177 | 171 | 166 |
Automotive Sales [Member] | |||
Revenues | |||
Revenues | $ 19,952 | $ 17,632 | $ 8,535 |
Cost of revenues | |||
Cost of revenues | 15,939 | 13,686 | 6,725 |
Energy Generation and Storage [Member] | |||
Revenues | |||
Revenues | 1,531 | 1,555 | 1,116 |
Cost of revenues | |||
Cost of revenues | $ 1,341 | $ 1,365 | $ 874 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (775) | $ (1,063) | $ (2,241) |
Other comprehensive loss: | |||
Reclassification adjustment for net gains on derivatives into net loss | (6) | ||
Foreign currency translation adjustment | (28) | (42) | 63 |
Comprehensive loss | (803) | (1,105) | (2,184) |
Less: Comprehensive income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | 87 | (87) | (279) |
Comprehensive loss attributable to common stockholders | $ (890) | $ (1,018) | $ (1,905) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Convertible Senior Notes due in 2022 [Member] | Convertible Senior Notes due in 2024 [Member] | May 2019 Public Offering [Member] | Redeemable Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member]May 2019 Public Offering [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Convertible Senior Notes due in 2022 [Member] | Additional Paid-In Capital [Member]Convertible Senior Notes due in 2024 [Member] | Additional Paid-In Capital [Member]May 2019 Public Offering [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total Stockholder's Equity [Member] | Total Stockholder's Equity [Member]Convertible Senior Notes due in 2022 [Member] | Total Stockholder's Equity [Member]Convertible Senior Notes due in 2024 [Member] | Total Stockholder's Equity [Member]May 2019 Public Offering [Member] | Noncontrolling Interests in Subsidiaries [Member] |
Balance at Dec. 31, 2016 | $ 5,538 | $ 367 | $ 0 | $ 7,774 | $ (2,997) | $ (24) | $ 4,753 | $ 785 | ||||||||||
Balance, shares at Dec. 31, 2016 | 162 | |||||||||||||||||
Adjustments for prior periods from adopting Accounting Standards Update | Accounting Standards Update No. 2016-09 [Member] | 15 | (15) | ||||||||||||||||
Conversion feature of Convertible Senior Notes | $ 146 | $ 146 | $ 146 | |||||||||||||||
Purchases of convertible note hedges | (204) | (204) | (204) | |||||||||||||||
Sales of warrants | 53 | 53 | 53 | |||||||||||||||
Exercises of conversion feature of convertible senior notes | 230 | $ 0 | 230 | 230 | ||||||||||||||
Exercise of conversion feature of convertible senior notes, Shares | 1 | |||||||||||||||||
Issuance of common stock for equity incentive awards and acquisitions, net of transaction costs | 269 | $ 0 | 269 | 269 | ||||||||||||||
Issuance of common stock upon acquisition and equity incentive awards, net of transaction costs, Shares | 4 | |||||||||||||||||
Issuance of common stock public offering | $ 400 | $ 0 | $ 400 | $ 400 | ||||||||||||||
Issuance of common stock public offering, shares | 2 | |||||||||||||||||
Stock-based compensation | 485 | 485 | 485 | |||||||||||||||
Contributions from noncontrolling interests | 597 | 193 | 597 | |||||||||||||||
Distributions to noncontrolling interests | (164) | (101) | (164) | |||||||||||||||
Other | 10 | (3) | 10 | 10 | ||||||||||||||
Net income (loss) | (2,183) | (58) | (1,962) | (1,962) | (221) | |||||||||||||
Other comprehensive (loss) income | 57 | 57 | 57 | |||||||||||||||
Balance at Dec. 31, 2017 | 5,234 | 398 | $ 0 | 9,178 | (4,974) | 33 | 4,237 | 997 | ||||||||||
Balance, shares at Dec. 31, 2017 | 169 | |||||||||||||||||
Adjustments for prior periods from adopting Accounting Standards Update | Accounting Standards Update No. 2014-09 [Member] | 534 | 8 | 623 | 623 | (89) | |||||||||||||
Adjustments for prior periods from adopting Accounting Standards Update | Accounting Standards Update No. 2017-05 [Member] | 9 | 9 | 9 | |||||||||||||||
Stock-based compensation | 775 | 775 | 775 | |||||||||||||||
Contributions from noncontrolling interests | 161 | 276 | 161 | |||||||||||||||
Distributions to noncontrolling interests | (210) | (61) | (210) | |||||||||||||||
Other | (3) | |||||||||||||||||
Net income (loss) | (1,001) | (62) | (976) | (976) | (25) | |||||||||||||
Other comprehensive (loss) income | (41) | (41) | (41) | |||||||||||||||
Balance at Dec. 31, 2018 | 5,757 | 556 | $ 0 | 10,249 | (5,318) | (8) | 4,923 | 834 | ||||||||||
Balance, shares at Dec. 31, 2018 | 173 | |||||||||||||||||
Issuance of common stock for equity incentive awards | 296 | $ 0 | 296 | 296 | ||||||||||||||
Issuance of common stock for equity incentive awards, Shares | 4 | |||||||||||||||||
Adjustments for prior periods from adopting Accounting Standards Update | Accounting Standards Update No. 2016-02 [Member] | 97 | 97 | 97 | |||||||||||||||
Conversion feature of Convertible Senior Notes | $ 491 | $ 491 | $ 491 | |||||||||||||||
Purchases of convertible note hedges | (476) | (476) | (476) | |||||||||||||||
Sales of warrants | 174 | 174 | 174 | |||||||||||||||
Issuance of common stock for equity incentive awards and acquisitions, net of transaction costs | 482 | $ 0 | 482 | 482 | ||||||||||||||
Issuance of common stock upon acquisition and equity incentive awards, net of transaction costs, Shares | 5 | |||||||||||||||||
Issuance of common stock public offering | $ 848 | $ 0 | $ 848 | $ 848 | ||||||||||||||
Issuance of common stock public offering, shares | 3 | |||||||||||||||||
Stock-based compensation | 973 | 973 | 973 | |||||||||||||||
Contributions from noncontrolling interests | 174 | 105 | 174 | |||||||||||||||
Distributions to noncontrolling interests | (198) | (65) | (198) | |||||||||||||||
Other | (4) | (1) | (4) | (4) | ||||||||||||||
Net income (loss) | (823) | 48 | (862) | (862) | 39 | |||||||||||||
Other comprehensive (loss) income | (28) | (28) | (28) | |||||||||||||||
Balance at Dec. 31, 2019 | $ 7,467 | $ 643 | $ 0 | $ 12,737 | $ (6,083) | $ (36) | $ 6,618 | $ 849 | ||||||||||
Balance, shares at Dec. 31, 2019 | 181 |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Common stock issued, per share | $ 243 | $ 262 |
Common stock public offering issuance costs | $ 15 | $ 3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net loss | $ (775) | $ (1,063) | $ (2,241) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and impairment | 2,154 | 1,901 | 1,636 |
Stock-based compensation | 898 | 749 | 467 |
Amortization of debt discounts and issuance costs | 188 | 159 | 91 |
Inventory and purchase commitments write-downs | 193 | 85 | 132 |
Loss on disposals of fixed assets | 146 | 162 | 106 |
Foreign currency transaction (gains) loss | (48) | (2) | 52 |
Loss related to SolarCity acquisition | 58 | ||
Non-cash interest and other operating activities | 186 | 49 | 135 |
Operating cash flow related to repayment of discounted convertible notes | (188) | ||
Changes in operating assets and liabilities, net of effect of business combinations: | |||
Accounts receivable | (367) | (497) | (25) |
Inventory | (429) | (1,023) | (179) |
Operating lease vehicles | (764) | (215) | (1,523) |
Prepaid expenses and other current assets | (288) | (82) | (72) |
Other non-current assets | 115 | (207) | (15) |
Accounts payable and accrued liabilities | 682 | 1,723 | 388 |
Deferred revenue | 801 | 406 | 469 |
Customer deposits | (58) | (96) | 170 |
Resale value guarantee | (150) | (111) | 209 |
Other long-term liabilities | 109 | 160 | 81 |
Net cash provided by (used in) operating activities | 2,405 | 2,098 | (61) |
Cash Flows from Investing Activities | |||
Purchases of property and equipment excluding finance leases, net of sales | (1,327) | (2,101) | (3,415) |
Purchases of solar energy systems | (105) | (218) | (666) |
Purchase of intangible assets | (5) | ||
Receipt of government grants | 46 | ||
Business combinations, net of cash acquired | (45) | (18) | (115) |
Net cash used in investing activities | (1,436) | (2,337) | (4,196) |
Cash Flows from Financing Activities | |||
Proceeds from issuances of common stock in public offerings, net of underwriting discounts | 848 | 400 | |
Proceeds from issuances of convertible and other debt | 10,669 | 6,176 | 7,138 |
Repayments of convertible and other debt | (9,161) | (5,247) | (3,996) |
Repayments of borrowings issued to related parties | (100) | (165) | |
Collateralized lease repayments | (389) | (559) | 511 |
Proceeds from exercises of stock options and other stock issuances | 263 | 296 | 259 |
Principal payments on finance leases | (321) | (181) | (103) |
Common stock and debt issuance costs | (37) | (15) | (63) |
Purchase of convertible note hedges | (476) | (204) | |
Proceeds from settlement of convertible note hedges | 287 | ||
Proceeds from issuance of warrants | 174 | 53 | |
Payments for settlements of warrants | (230) | ||
Proceeds from investments by noncontrolling interests in subsidiaries | 279 | 437 | 790 |
Distributions paid to noncontrolling interests in subsidiaries | (311) | (227) | (262) |
Payments for buy-outs of noncontrolling interests in subsidiaries | (9) | (6) | |
Net cash provided by financing activities | 1,529 | 574 | 4,415 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 8 | (23) | 40 |
Net increase in cash and cash equivalents and restricted cash | 2,506 | 312 | 198 |
Cash and cash equivalents and restricted cash, beginning of period | 4,277 | 3,965 | 3,767 |
Cash and cash equivalents and restricted cash, end of period | 6,783 | 4,277 | 3,965 |
Supplemental Non-Cash Investing and Financing Activities | |||
Equity issued in connection with business combination | 207 | ||
Acquisitions of property and equipment included in liabilities | 562 | 249 | 914 |
Estimated fair value of facilities under build-to-suit leases | 94 | 313 | |
Supplemental Disclosures | |||
Cash paid during the period for interest, net of amounts capitalized | 455 | 381 | 183 |
Cash paid during the period for taxes, net of refunds | $ 54 | $ 35 | $ 66 |
Overview
Overview | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Overview | Note 1 – Overview Tesla, Inc. (“Tesla”, the “Company”, “we”, “us” or “our”) was incorporated in the State of Delaware on July 1, 2003. We design, develop, manufacture and sell high-performance fully electric vehicles and design, manufacture, install and sell solar energy generation and energy storage products. Our Chief Executive Officer, as the chief operating decision maker (“CODM”), organizes the Company, manages resource allocations and measures performance among two operating and reportable segments: (i) automotive and (ii) energy generation and storage. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and reflect our accounts and operations and those of our subsidiaries in which we have a controlling financial interest. In accordance with the provisions of Accounting Standards Codification (“ASC”) 810, Consolidation 17 Variable Interest Entity Arrangements Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures in the accompanying notes. Estimates are used for, but not limited to, determining the transaction price of products and services in arrangements with multiple performance obligations and determining the amortization period of these obligations, significant economic incentive for residual value guarantee arrangements, sales return reserves, the collectability of accounts receivable, inventory valuation, fair value of long-lived assets, goodwill, fair value of financial instruments, residual value of operating lease vehicles, depreciable lives of property and equipment and solar energy systems, fair value and residual value of solar energy systems subject to leases, warranty liabilities, income taxes, contingencies, determining lease pass-through financing obligations, the valuation of build-to-suit lease assets, fair value of interest rate swaps and inputs used to value stock-based compensation. In addition, estimates and assumptions are used for the accounting for business combinations, including the fair values and useful lives of acquired assets, assumed liabilities and noncontrolling interests. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. Revenue Recognition Adoption of new accounting standards ASU 2014-09, Revenue - Revenue from Contracts with Custome A majority of our automotive sales revenue is recognized when control transfers upon delivery to customers. For certain vehicle sales where revenue was previously deferred as an in-substance operating lease, such as certain vehicle sales to customers or leasing partners with a resale value guarantee, we recognize revenue when the vehicles are delivered as a sale with a right of return. As a result, the corresponding operating lease asset, deferred revenue, and resale value guarantee balances as of December 31, 2017, were reclassified to accumulated deficit as part of our adoption entry. Furthermore, the warranty liability related to such vehicles has been accrued as a result of the change from in-substance operating leases to vehicle sales. Prepayments on contracts that can be cancelled without significant penalties, such as vehicle maintenance plans, have been reclassified from deferred revenue to customer deposits. Refer to the Automotive Sales Revenue Automotive Leasing Revenue Automotive Segment Automotive Sales Revenue Automotive Sales without Resale Value Guarantee Automotive sales revenue includes revenues related to deliveries of new vehicles and pay-per-use charges, and specific other features and services that meet the definition of a performance obligation under the new revenue standard, including access to our Supercharger network, internet connectivity, Autopilot, Full Self-Driving (“FSD”) features and over-the-air software updates. We recognize revenue on automotive sales upon delivery to the customer, which is when the control of a vehicle transfers. Payments are typically received at the point control transfers or in accordance with payment terms customary to the business. Other features and services such as access to our Supercharger network, internet connectivity and over-the-air software updates are provisioned upon control transfer of a vehicle and recognized over time on a straight-line basis as we have a stand-ready obligation to deliver such services to the customer. We recognize revenue related to these other features and services over the performance period, which is generally the expected ownership life of the vehicle or the eight-year life of the vehicle. Revenue related to Autopilot and FSD features is recognized when functionality is delivered to the customer. For our obligations related to automotive sales, we estimate standalone selling price by considering costs used to develop and deliver the service, third-party pricing of similar options and other information that may be available. At the time of revenue recognition, we reduce the transaction price and record a sales return reserve against revenue for estimated variable consideration related to future product returns. Such estimates are based on historical experience and are immaterial in all periods presented. In addition, any fees that are paid or payable by us to a customer’s lender when we arrange the financing are recognized as an offset against automotive sales revenue. Costs to obtain a contract mainly relate to commissions paid to our sales personnel for the sale of vehicles. Commissions are not paid on other obligations such as access to our Supercharger network, internet connectivity, Autopilot, FSD features and over-the-air software updates. Automotive Sales with Resale Value Guarantee or a Buyback Option We offer resale value guarantees or similar buy-back terms to certain international customers who purchase vehicles and who finance their vehicles through one of our specified commercial banking partners. We also offer resale value guarantees in connection with automotive sales to certain leasing partners. Under these programs, we receive full payment for the vehicle sales price at the time of delivery and our counterparty has the option of selling their vehicle back to us during the guarantee period, which currently is generally at the end of the term of the applicable loan or financing program, for a pre-determined resale value. With the exception of two programs which are discussed within the Automotive Leasing in accordance with the new revenue standard On a quarterly basis, we assess the estimated market values of vehicles under our buyback options program to determine whether there have been changes to the likelihood of future product returns. As we accumulate more data related to the buyback values of our vehicles or as market conditions change, there may be material changes to their estimated values. Due to price adjustments we made to our vehicle offerings during 2019, we estimated that there is a greater likelihood that customers will exercise their buyback options that were provided prior to such adjustments. As a result, along with the estimated variable consideration related to normal future product returns for vehicles sold under the buyback options program, we adjusted our sales return reserve on vehicles previously sold under our buyback options program resulting in a reduction of automotive sales revenues of $ million for the year ended December 31, 2019. If customers elect to exercise the buyback option, we expect to be able to subsequently resell the returned vehicles, which resulted in a corresponding reduction in cost of automotive sales of $451 million for the year ended December 31, 2019. The net impact was $ million reduction in gross profit for the year ended December 31, 2019. The total sales return reserve on vehicles previously sold under our buyback options program was $639 million as of December 31, 2019, of which $93 million was short term. Vehicle Sales to Leasing Partners with a Resale Value Guarantee and a Buyback Option Vehicle Sales to Customers with a Resale Value Guarantee where Exercise is Probable. Prior to the adoption of the new revenue standard, all transactions with resale value guarantees were recorded as operating leases. The amount of sale proceeds equal to the resale value guarantee was deferred until the guarantee expired or was exercised. For certain transactions that were considered interest bearing collateralized borrowings as required under ASC 840, Leases prior to January 1, 2019, we also accrued interest expense based on our borrowing rate. In cases where our counterparty retained ownership of the vehicle at the end of the guarantee period, the resale value guarantee liability and any remaining deferred revenue balances related to the vehicle were settled to automotive leasing revenue, and the net book value of the leased vehicle was expensed to cost of automotive leasing revenue. If our counterparty returned the vehicle to us during the guarantee period, we purchased the vehicle from our counterparty in an amount equal to the resale value guarantee and settled any remaining deferred balances to automotive leasing revenue, and we reclassified the net book value of the vehicle on the consolidated balance sheet to used vehicle inventory. Deferred revenue activity related to the access to our Supercharger network, internet connectivity, Autopilot, FSD features and over-the-air software updates on automotive sales with and without resale value guarantee consisted of the following (in millions): Year ended December 31, 2019 2018 Deferred revenue on automotive sales with and without resale value guarantee— beginning of period $ 883 $ 476 Additions 880 532 Net changes in liability for pre-existing contracts 9 (13 ) Revenue recognized (300 ) (112 ) Deferred revenue on automotive sales with and without resale value guarantee— end of period $ 1,472 $ 883 Deferred revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, as of December 31, 2019. From the deferred revenue balance as of December 31, 2018, revenue recognized during the year ended December 31, 2019 was $220 million. From the deferred revenue balance as of January 1, 2018, revenue recognized during the year ended December 31, 2018 was $81 million. Automotive Sales without Resale Value Guarantee Automotive Regulatory Credits In connection with the production and delivery of our zero emission vehicles in global markets, we have earned and will continue to earn various tradable automotive regulatory credits. We have sold these credits, and will continue to sell future credits, to automotive companies and other regulated entities who can use the credits to comply with emission standards and other regulatory requirements. For example, under California’s Zero Emission Vehicle Regulation and those of states that have adopted California’s standard, vehicle manufacturers are required to earn or purchase credits, referred to as ZEV credits, for compliance with their annual regulatory requirements. These laws provide that automakers may bank or sell to other regulated parties their excess credits if they earn more credits than the minimum quantity required by those laws. We also earn other types of saleable regulatory credits in the United States and abroad, including greenhouse gas, fuel economy and clean fuels credits. Payments for regulatory credits are typically received at the point control transfers to the customer, or in accordance with payment terms customary to the business. We recognize revenue on the sale of automotive regulatory credits at the time control of the regulatory credits is transferred to the purchasing party as automotive revenue in the consolidated statements of operations. Revenue from the sale of automotive regulatory credits totaled $594 million, $419 million and $360 million for the years ended December 31, 2019, 2018 and 2017, respectively. Deferred revenue related to sales of automotive regulatory credits was $140 million and $0 as of and 2018, respectively. We expect to recognize the deferred revenue as of December 31, 2019 in the next 12 months. Automotive Leasing Revenue Automotive leasing revenue includes revenue recognized under lease accounting guidance for our direct leasing programs as well as the two programs with resale value guarantees which continue to qualify for operating lease treatment. Prior to the adoption of the new revenue standard, all programs with resale value guarantees were accounted for as operating leases Direct Vehicle Leasing Program We have outstanding leases under our direct vehicle leasing programs in the U.S., Canada and in certain countries in Europe. As of December 31, 2019, the direct vehicle leasing program is offered for all new Model S, Model X and Model 3 vehicles in the U.S. and for new Model S and Model X vehicles in Canada. Qualifying customers are permitted to lease a vehicle directly from Tesla for up to 48 months. At the end of the lease term, customers are required to return the vehicles to us or for Model S and Model X leases, may opt to purchase the vehicles for a pre-determined residual value. We account for these leasing transactions as operating leases. We record leasing revenues to on a straight-line basis over the contractual term, and we record the depreciation of these vehicles to cost of automotive leasing revenue. For the years ended December 31, 2019, 2018 and 2017 , we recognized $532 million, $393 million and $221 million of direct vehicle leasing revenue, respectively . As of December 31, 2019 and 2018, we had deferred $218 million and $110 million, respectively, of lease-related upfront payments, which will be recognized on a straight-line basis over the contractual terms of the individual leases. We capitalize shipping costs and initial direct costs such as the incremental cost of referral fees and sales commissions from the origination of automotive lease agreements as an element of operating lease vehicles, net, and subsequently amortize these costs over the term of the related lease agreement. Our policy is to exclude taxes collected from a customer from the transaction price of automotive contracts. Total capitalized costs were immaterial as of December 31, 2019 and 2018. Vehicle Sales to Leasing Partners with a Resale Value Guarantee and a Buyback Option We offer buyback options in connection with automotive sales with resale value guarantees with certain leasing partner sales in the United States. These transactions entail a transfer of leases, which we have originated with an end-customer, to our leasing partner. As control of the vehicles has not been transferred in accordance with the new revenue standard Leases At the end of the lease term, we settle our liability in cash by either purchasing the vehicle from the leasing partner for the buyback option amount or paying a shortfall to the option amount the leasing partner may realize on the sale of the vehicle. Any remaining balances within deferred revenue and resale value guarantee will be settled to automotive leasing revenue. The end customers can extend the lease for a period of up to 6 months. . The maximum amount we could be required to pay under this program, should we decide to repurchase all vehicles, was $214 million and $480 million as of December 31, 2019 and 2018, respectively, including $178 million within a 12-month period from December 31, 2019. As of December 31, 2019 and 2018 we had $238 and $558 million, respectively, of such borrowings recorded in resale value guarantees and $29 million and $93 million, respectively, recorded in deferred revenue liability. Vehicle S ales to Customers with a Resale Value Guarantee where Exercise is Probable For certain international programs where we have offered resale value guarantees to certain customers who purchased vehicles and where we expect the customer has a significant economic incentive to exercise the resale value guarantee provided to them, we continue to recognize these transactions as operating leases. The process to determine whether there is a significant economic incentive includes a comparison of a vehicle’s estimated market value at the time the option is exercisable with the guaranteed resale value to determine the customer’s economic incentive to exercise. We have not sold any vehicles under this program since the first half of 2017 and all current period activity relates to the exercise or cancellation of active transactions. The amount of sale proceeds equal to the resale value guarantee is deferred until the guarantee expires or is exercised. The remaining sale proceeds are deferred and recognized on a straight-line basis over the stated guarantee period to automotive leasing revenue. The guarantee period expires at the earlier of the end of the guarantee period or the pay-off of the initial loan. We capitalize the cost of these vehicles on the consolidated balance sheet as operating lease vehicles, net, and depreciate their value, less salvage value, to cost of automotive leasing revenue over the same period. In cases where a customer retains ownership of a vehicle at the end of the guarantee period, the resale value guarantee liability and any remaining deferred revenue balances related to the vehicle are settled to automotive leasing revenue, and the net book value of the leased vehicle is expensed to cost of automotive leasing revenue. If a customer returns the vehicle to us during the guarantee period, we purchase the vehicle from the customer in an amount equal to the resale value guarantee and settle any remaining deferred balances to automotive leasing revenue, and we reclassify the net book value of the vehicle on the consolidated balance sheets to used vehicle inventory. As of December 31, 2019 and 2018, $115 million and $150 million, respectively, of the guarantees were exercisable by customers within the next 12 months. For the year ended December 31, 2019 and 2018, we recognized $150 million and $158 million, respectively, of leasing revenue related to this program. The net carrying amount of operating lease vehicles under this program was $83 million and $212 million, respectively, as of December 31, 2019 and 2018. Services and Other Revenue Services and other revenue consists of non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by our acquired subsidiaries to third party customers, and vehicle insurance revenue. There were no significant changes to the timing or amount of revenue recognition as a result of our adoption of the new revenue standard. Revenues related to repair and maintenance services are recognized over time as services are provided and extended service plans are recognized over the performance period of the service contract as the obligation represents a stand-ready obligation to the customer. We sell used vehicles, services, service plans, vehicle components and merchandise separately and thus use standalone selling prices as the basis for revenue allocation to the extent that these items are sold in transactions with other performance obligations. Payment for used vehicles, services, and merchandise are typically received at the point when control transfers to the customer or in accordance with payment terms customary to the business. Payments received for prepaid plans are refundable upon customer cancellation of the related contracts and are included within customer deposits on the consolidated balance sheet. Deferred revenue related to services and other revenue was immaterial as of December 31, 2019 and 2018. Energy Generation and Storage Segment Energy Generation and Storage Sales Energy generation and storage sales revenue consists of the sale of solar energy systems and energy storage systems to residential, small commercial, and large commercial and utility grade customers. Upon adoption of the new lease standard (refer to Leases Sales of energy storage systems to residential and small scale commercial customers consist of the installation of the energy storage system and revenue is recognized when control transfers, which is when the product has been delivered or, if we are performing installation, when installed and commissioned. Payment for such storage systems is made upon invoice or in accordance with payment terms customary to the business. For large commercial and utility grade solar energy system and energy storage system sales which consist of the engineering, design, and installation of the system, customers make milestone payments that are consistent with contract-specific phases of a project. Revenue from such contracts is recognized over time using the percentage of completion method based on cost incurred as a percentage of total estimated contract costs for energy storage system sales and as a percentage of total estimated labor hours for solar energy system sales revenue is recognized when control transfers, which is when the product has been delivered to the customer and commissioned for energy storage systems and when the project has received permission to operate from the utility for solar energy systems. for solar energy system sales and upon delivery of the service for energy storage system sales In instances where there are multiple performance obligations in a single contract, we allocate the consideration to the various obligations in the contract based on the relative standalone selling price method. Standalone selling prices are estimated based on estimated costs plus margin or using market data for comparable products. Costs incurred on the sale of residential installations before the solar energy systems are completed are included as work in process within inventory in the consolidated balance sheets. However, any fees that are paid or payable by us to a solar loan lender would be recognized as an offset against revenue. Costs to obtain a contract relate mainly to commissions paid to our sales personnel related to the sale of solar energy systems and energy storage systems. As our contract costs related to solar energy system and energy storage system sales are typically fulfilled within one year, the costs to obtain a contract are expensed as incurred. As part of our solar energy system and energy storage system contracts, we may provide the customer with performance guarantees that warrant that the underlying system will meet or exceed the minimum energy generation or retention requirements specified in the contract. In certain instances, we may receive a bonus payment if the system performs above a specified level. Conversely, if a solar energy system or energy storage system does not meet the performance guarantee requirements, we may be required to pay liquidated damages. Other forms of variable consideration related to our large commercial and utility grade solar energy system and energy storage system contracts include variable customer payments that will be made based on our energy market participation activities. Such guarantees and variable customer payments represent a form of variable consideration and are estimated at contract inception at their most likely amount and updated at the end of each reporting period as additional performance data becomes available. Such estimates are included in the transaction price only to the extent that it is probable a significant reversal of revenue will not occur. We record as deferred revenue any non-refundable amounts that are collected from customers related to fees charged for prepayments and remote monitoring service and operations and maintenance service, which is recognized as revenue ratably over the respective customer contract term. As of December 31, 2019 and 2018, deferred revenue related to such customer payments amounted to $156 million and $149 million, respectively. Revenue recognized from the deferred revenue balance as of December 31, 2018 was $41 million for the year ended December 31, 2019. Revenue recognized from the deferred revenue balance as of January 1, 2018 was $41 million for the year ended December 31, 2018. Energy Generation and Storage Leasing For revenue arrangements where we are the lessor under operating lease agreements for energy generation and storage products For solar energy systems where customers purchase electricity from us under PPAs prior to January 1, 2019, we have determined that these agreements should be accounted for as operating leases pursuant to ASC 840. Revenue is recognized based on the amount of electricity delivered at rates specified under the contracts, assuming all other revenue recognition criteria are met. We record as deferred revenue any amounts that are collected from customers, including lease prepayments, in excess of revenue recognized and operations and maintenance service, which is recognized as revenue ratably over the respective customer contract term. As of December 31, 2019 and 2018, deferred revenue related to such customer payments amounted to $226 million and $225 million, respectively. Deferred revenue also includes the portion of rebates and incentives received from utility companies and various local and state government agencies, which is recognized as revenue over the lease term. As of December 31, 2019 and December 31, 2018, deferred revenue from rebates and incentives amounted to $36 million and $37 million, respectively. We capitalize initial direct costs from the execution of agreements for solar energy systems and PPAs, which include the referral fees and sales commissions, as an element of solar energy systems, net, and subsequently amortize these costs over the term of the related agreements. Revenue by source The following table disaggregates our revenue by major source (in millions): Year Ended December 31, 2019 2018 Automotive sales without resale value guarantee $ 19,212 $ 15,810 Automotive sales with resale value guarantee (1) 146 1,403 Automotive regulatory credits 594 419 Energy generation and storage sales (2) 1,000 1,056 Services and other 2,226 1,391 Total revenues from sales and services 23,178 20,079 Automotive leasing 869 883 Energy generation and storage leasing (2) 531 499 Total revenues $ 24,578 $ 21,461 (1) We made pricing adjustments to our vehicle offerings in 2019, which resulted in a reduction of automotive sales with resale value guarantee revenues. Refer to Automotive Sales with Resale Value Guarantee (2) Under ASC 842, Leases Leases Cost of Revenues Automotive Segment Automotive Sales Cost of automotive sales revenue includes direct parts, material and labor costs, manufacturing overhead, including depreciation costs of tooling and machinery, shipping and logistic costs, vehicle connectivity costs, allocations of electricity and infrastructure costs related to our Supercharger network, and reserves for estimated warranty expenses. Cost of automotive sales revenues also includes adjustments to warranty expense and charges to write down the carrying value of our inventory when it exceeds its estimated net realizable value and to provide for obsolete and on-hand inventory in excess of forecasted demand . Automotive Leasing Cost of automotive leasing revenue includes primarily the amortization of operating lease vehicles over the lease term, as well as warranty expenses recognized as incurred. Cost of automotive leasing revenue also includes vehicle connectivity costs and allocations of electricity and infrastructure costs related to our Supercharger network for vehicles under our leasing programs . Services and Other Costs of services and other revenue includes costs associated with providing non-warranty after-sales services . Energy Generation and Storage Segment Energy Generation and Storage Energy generation and storage cost of revenue includes direct and indirect material and labor costs, warehouse rent, freight, warranty expense, other overhead costs and amortization of certain acquired intangible assets. In addition, where arrangements are accounted for as operating leases, the cost of revenue is primarily comprised of depreciation of the cost of leased solar energy systems, maintenance costs associated with those systems and amortization of any initial direct costs. Leases In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to lease accounting under ASC 840. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. We adopted ASC 842 as of January 1, 2019 using the cumulative effect adjustment approach (“adoption of the new lease standard”). In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. Agreements for solar energy system leases and PPAs (solar leases) that commence after January 1, 2019, where we are the lessor and were previously accounted for as operating leases no longer meet the definition of a lease upon the adoption of ASC 842 and are instead accounted for in accordance with the revenue standard. Under these two types of arrangements, the customer is not responsible for the design of the energy system but rather approved the energy system benefits in terms of energy capacity and production to be received over the term. Accordingly, the revenue from solar leases commencing after January 1, 2019 are now recognized as earned, based on the amount of capacity provided or electricity delivered at the contractual billing rates, assuming all other revenue recognition criteria have been met. Under the practical expedient available under ASC 606-10-55-18, we recognize revenue based on the value of the service which is consistent with the billing amount. We have lease agreements with lease and non-lease components, and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease. Additionally, leases previously identified as build-to-suit leasing arrangements under legacy lease accounting (ASC 840), were derecognized pursuant to the transition guidance provided for build-to-suit leases in ASC 842. Accordingly, these leases have been reassessed as operating leases as of the adoption date under ASC 842, and are included on the consolidated balance sheet as of December 31, 2019. Operating lease assets are included within operating lease right-of-use assets, and the corresponding operating lease liabilities are included within accrued liabilities and other ong-term debt and finance leases, net of current portion We have elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2019 had a material impact on our consolidated financial statements. The most significant impacts related to the (i) recognition of right-of-use ("ROU") assets of $1.29 billion and lease liabilities of $1.24 billion for operating leases on the consolidated balance sheet, and (ii) de-recognition of build-to-suit lease assets and liabilities of $1.62 billion and $1.74 billion, respectively, with the net impact of $97 million recorded to accum |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Note 3 – Business Combinations Maxwell Acquisition On May 16, 2019 (the “Acquisition Date”), we completed our strategic acquisition of Maxwell Technologies, Inc. (“Maxwell”), an energy storage and power delivery products company, for its complementary technology and workforce. Pursuant to the related Agreement and Plan of Merger (the “Merger Agreement”), each issued and outstanding share of Maxwell common stock was converted into 0.0193 (the “Exchange Ratio”) shares of our common stock. In addition, Maxwell’s stock option awards and restricted stock unit awards were assumed by us and converted into corresponding equity awards in respect of our common stock based on the Exchange Ratio, with the awards retaining the same vesting and other terms and conditions as in effect immediately prior to the acquisition. Fair Value of Purchase Consideration The Acquisition Date fair value of the purchase consideration was $207 million (902,968 shares issued at $229.49 per share, the opening price of our common stock on the Acquisition Date). Fair Value of Assets Acquired and Liabilities Assumed We accounted for the acquisition using the purchase method of accounting for business combinations under ASC 805, Business Combinations Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives and the expected future cash flows and related discount rates, can materially impact our consolidated financial statements. Significant inputs used for the model included the amount of cash flows, the expected period of the cash flows and the discount rates. In 2019, we finalized our estimate of the Acquisition Date fair values of the assets acquired and the liabilities assumed and there were no changes to the fair values of the assets acquired and the liabilities assumed. The allocation of the purchase price is based on management’s estimate of the Acquisition Date fair values of the assets acquired and liabilities assumed, as follows (in millions): Assets acquired: Cash and cash equivalents $ 32 Accounts receivable 24 Inventory 32 Property, plant and equipment, net 27 Operating lease right-of-use assets 10 Intangible assets 105 Prepaid expenses and other assets, current and non-current 3 Total assets acquired 233 Liabilities and equity assumed: Accounts payable (10 ) Accrued liabilities and other (28 ) Debt and finance leases, current and non-current (44 ) Deferred revenue, current (1 ) Other long-term liabilities (14 ) Additional paid-in capital (8 ) Total liabilities and equity assumed (105 ) Net assets acquired 128 Goodwill 79 Total purchase price $ 207 Goodwill represented the excess of the purchase price over the fair value of the net assets acquired and was primarily attributable to the expected synergies from integrating Maxwell’s technology into our automotive segment as well as the acquired talent. Goodwill is not deductible for U.S. income tax purposes and is not amortized. Identifiable Intangible Assets Acquired The determination of the fair value of identified intangible assets and their respective useful lives are as follows (in millions, except for estimated useful life): Fair Value Useful Life (in years) Developed technology $ 102 9 Customer relations 2 9 Trade name 1 10 Total intangible assets $ 105 Maxwell’s results of operations since the Acquisition Date have been included within the automotive segment. Standalone and pro forma results of operations have not been presented because they were not material to the consolidated financial statements. Other Acquisitions During the year ended December 31, 2019, we completed various other acquisitions generally for the related technology and workforce. Total consideration for these acquisitions was $96 million, of which $80 million was paid in cash. In aggregate, $36 million was attributed to intangible assets, $51 million was attributed to goodwill within the automotive segment, and $9 million was attributed to net assets assumed. Goodwill is not deductible for U.S. income tax purposes. The identifiable intangible assets were related to purchased technology, with estimated useful lives of one to nine years. Standalone and pro forma results of operations have not been presented because they were not material to the consolidated financial statements, either individually or in aggregate. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 4 – Goodwill and Intangible Assets Goodwill increased $130 million from $68 million as of December 31, 2018 to $198 million as of December 31, 2019 primarily due to completed business combinations during the year ended December 31, 2019 (see Note 3, Business Combinations ). There were no accumulated impairment losses as of December 31, 2019 and 2018. Information regarding our intangible assets including assets recognized from our acquisitions December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Other Net Carrying Amount Gross Carrying Amount Accumulated Amortization Other Net Carrying Amount Finite-lived intangible assets: Developed technology $ 291 $ (72 ) $ 1 $ 220 $ 152 $ (40 ) $ 1 $ 113 Trade names 3 (1 ) 1 3 45 (44 ) — 1 Favorable contracts and leases, net 113 (24 ) — 89 113 (17 ) — 96 Other 38 (16 ) — 22 36 (12 ) 1 25 Total finite-lived intangible assets 445 (113 ) 2 334 346 (113 ) 2 235 Indefinite-lived intangible assets: Gigafactory Nevada water rights 5 — — 5 — — — — In-process research and development (“IPR&D”) 60 — (60 ) — 60 — (13 ) 47 Total indefinite-lived intangible assets 65 — (60 ) 5 60 — (13 ) 47 Total intangible assets $ 510 $ (113 ) $ (58 ) $ 339 $ 406 $ (113 ) $ (11 ) $ 282 During 2019, the Company determined to abandon further development efforts on the IPR&D and therefore impaired the remaining $47 million in restructuring and other expenses in the consolidated statement of operations Total future amortization expense for finite-lived intangible assets was estimated as follows (in millions): 2020 $ 50 2021 49 2022 48 2023 42 2024 27 Thereafter 118 Total $ 334 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5 – Fair Value of Financial Instruments ASC 820 , Fair Value Measurements . The three-tiered fair value hierarchy, which prioritizes which inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputs for which there is little or no market data. The fair value hierarchy requires the use of observable market data when available in determining fair value. Our assets and liabilities that were measured at fair value on a recurring basis were as follows (in millions): December 31, 2019 December 31, 2018 Fair Value Level I Level II Level III Fair Value Level I Level II Level III Money market funds (cash and cash equivalents & restricted cash) $ 1,632 $ 1,632 $ — $ — $ 1,813 $ 1,813 $ — $ — Interest rate swap asset 1 — 1 — 12 — 12 — Interest rate swap liability (27 ) — (27 ) — (1 ) — (1 ) — Total $ 1,606 $ 1,632 $ (26 ) $ — $ 1,824 $ 1,813 $ 11 $ — All of our money market funds were classified within Level I of the fair value hierarchy because they were valued using quoted prices in active markets. Our interest rate swaps were classified within Level II of the fair value hierarchy because they were valued using alternative pricing sources or models that utilized market observable inputs, including current and forward interest rates. During the year ended December 31, 2019, there were no transfers between the levels of the fair value hierarchy. Interest Rate Swaps We enter into fixed-for-floating interest rate swap agreements to swap variable interest payments on certain debt for fixed interest payments, as required by certain of our lenders. We do not designate our interest rate swaps as hedging instruments. Accordingly, our interest rate swaps are recorded at fair value on the consolidated balance sheets within other assets or other long-term liabilities, with any changes in their fair values recognized as other income (expense), net, in the consolidated statements of operations and with any cash flows recognized as investing activities in the consolidated statements of cash flows. Our interest rate swaps outstanding were as follows (in millions): December 31, 2019 December 31, 2018 Aggregate Notional Amount Gross Asset at Fair Value Gross Liability at Fair Value Aggregate Notional Amount Gross Asset at Fair Value Gross Liability at Fair Value Interest rate swaps $ 821 $ 1 $ 27 $ 800 $ 12 $ 1 Our interest rate swaps activity was as follows (in millions): Year Ended December 31, 2019 2018 2017 Gross gains $ 11 $ 22 $ 7 Gross losses $ 51 $ 12 $ 13 Disclosure of Fair Values Our financial instruments that are not re-measured at fair value include accounts receivable, MyPower customer notes receivable, rebates receivable, accounts payable, accrued liabilities, customer deposits, participation interest and debt. The carrying values of these financial instruments other than our 1.25% Convertible Senior Notes due in 2021, 2.375% Convertible Senior Notes due in 2022 and 2.00% Convertible Senior Notes due in 2024 and our subsidiary’s Zero-Coupon Convertible Senior Notes due in 2020 (collectively referred to as “Convertible Senior Notes” below), 5.30% Senior Notes due in 2025, solar asset-backed notes and solar loan-backed notes approximate their fair values. We estimate the fair value of the Convertible Senior Notes and the 5.30% Senior Notes due in 2025 using commonly accepted valuation methodologies and market-based risk measurements that are indirectly observable, such as credit risk (Level II) In addition, December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Convertible Senior Notes $ 3,686 $ 6,067 $ 3,661 $ 4,347 5.30% $ 1,782 $ 1,748 $ 1,779 $ 1,575 Solar asset-backed notes $ 1,155 $ 1,211 $ 1,183 $ 1,207 Solar loan-backed notes $ 175 $ 189 $ 203 $ 212 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 6 – Inventory Our inventory consisted of the following (in millions): December 31, December 31, 2019 2018 Raw materials $ 1,428 $ 932 Work in process 362 297 Finished goods (1) 1,356 1,581 Service parts 406 303 Total $ 3,552 $ 3,113 (1) Finished goods inventory includes vehicles in transit to fulfill customer orders, new vehicles available for sale, used vehicles and energy storage products. For solar energy systems, we commence transferring component parts from inventory to construction in progress, a component of solar energy systems, once a lease or PPA contract with a customer has been executed and installation has been initiated. Additional costs incurred on the leased solar energy systems, including labor and overhead, are recorded within construction in progress. We write-down inventory for any excess or obsolete inventories or when we believe that the net realizable value of inventories is less than the carrying value. During the years ended December 31, 2019, 2018 and 2017, we recorded write-downs of $138 million, $78 million and $124 million, respectively, in cost of revenues. |
Solar Energy Systems, Net
Solar Energy Systems, Net | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Solar Energy Systems, Net | Note 7 – Solar Energy Systems, Net Solar energy systems, net, consisted of the following (in millions): December 31, December 31, 2019 2018 Solar energy systems in service $ 6,682 $ 6,431 Initial direct costs related to customer solar energy system lease acquisition costs 102 99 6,784 6,530 Less: accumulated depreciation and amortization (1) (723 ) (496 ) 6,061 6,034 Solar energy systems under construction 18 68 Solar energy systems pending interconnection 59 169 Solar energy systems, net (2) $ 6,138 $ 6,271 (1) Depreciation and amortization expense during the years ended December 31, 2019, 2018 and 2017 was $227 million, $276 million, and $213 million, respectively. (2) As of December 31, 2019 and 2018, solar energy systems, net, included $36 million of gross finance leased assets with accumulated depreciation and amortization of $6 million and $4 million, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 8 – Property, Plant and Equipment, Net Our property, plant and equipment, net, consisted of the following (in millions): December 31, December 31, 2019 2018 Machinery, equipment, vehicles and office furniture $ 7,167 $ 6,329 Tooling 1,493 1,398 Leasehold improvements 1,087 961 Land and buildings 3,024 4,047 Computer equipment, hardware and software 595 487 Construction in progress 764 807 14,130 14,029 Less: Accumulated depreciation (3,734 ) (2,699 ) Total $ 10,396 $ 11,330 As of December 31, 2018, the table above included $1.69 billion of gross build-to-suit lease assets. As a result of the adoption of the new lease standard on January 1, 2019, we have de-recognized all build-to-suit lease assets and have reassessed these leases to be operating lease right-of-use assets within the consolidated balance sheet as of December 31, 2019 (see Note 2, Summary of Significant Accounting Policies Construction in progress is primarily comprised of tooling and equipment related to the manufacturing of our products and Gigafactory Shanghai construction. Completed assets are transferred to their respective asset classes, and depreciation begins when an asset is ready for its intended use. Interest on outstanding debt is capitalized during periods of significant capital asset construction and amortized over the useful lives of the related assets. During the years ended December 31, 2019 and 2018, we capitalized $31 million and $55 million, respectively, of interest. Depreciation expense during the years ended December 31, 2019, 2018 and 2017 was $1.37 billion, $1.11 billion and $769 million, respectively. Gross property plant and equipment under finance leases as of December 31, 2019 and 2018 was $2.08 billion and $1.52 billion, respectively. Accumulated depreciation on property, plant and equipment under finance leases as of these dates was $483 million and $232 million, respectively. Panasonic has partnered with us on Gigafactory Nevada with investments in the production equipment that it uses to manufacture and supply us with battery cells. Under our arrangement with Panasonic, we plan to purchase the full output from their production equipment at negotiated prices. As the terms of the arrangement convey a finance lease under ASC 842, Leases and 2018, we had cumulatively capitalized costs of $1.73 billion and $1.24 billion, respectively, We had cumulatively capitalized total costs for Gigafactory Nevada, including costs under our Panasonic arrangement, of $5.27 billion and $4.62 billion as of December 31, 2019 and 2018, respectively. In 2019, the Shanghai government agreed to provide $85 million of certain incentives in connection with us making certain manufacturing equipment investments at Gigafactory Shanghai, of which $46 million was received in cash and the remaining $39 million was in the form of assets and services contributed by the government. These incentives were taken as a reduction to property, plant and equipment, net, on the consolidated balance sheet. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities and Other | Note 9 – Accrued Liabilities and Other As of December 31, 2019 and 2018, accrued liabilities and other current liabilities consisted of the following (in millions): December 31, December 31, 2019 2018 Accrued purchases (1) $ 638 $ 394 Payroll and related costs 466 449 Taxes payable (2) 611 348 Accrued interest 86 78 Financing obligation, current portion 57 62 Accrued warranty, current portion 344 201 Sales return reserve, current portion 272 108 Build-to-suit lease liability, current portion — 82 Operating lease right-of-use liabilities, current portion 228 — Other current liabilities 203 372 Total $ 2,905 $ 2,094 (1) Accrued purchases primarily reflects receipts of goods and services that we had not been invoiced yet. As we are invoiced for these goods and services, this balance will reduce and accounts payable will increase. (2) Taxes payable includes value added tax, sales tax, property tax, use tax and income tax payables. Due to price adjustments we made to our vehicle offerings during 2019, we increased our sales return reserve significantly on vehicles previously sold under our buyback options program. See Note 2, Summary of Significant Accounting Policies for details. As of December 31, 2018, the table above included $82 million of current build-to-suit lease liabilities. As a result of the adoption of the new lease standard on January 1, 2019, we have de-recognized all build-to-suit lease liabilities and have reassessed these leases to be operating lease right-of-use liabilities as of December 31, 2019. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities [Abstract] | |
Other Long-term Liabilities | Note 10 – Other Long-Term Liabilities As of December 31, 2019 and 2018, other long-term liabilities consisted of the following (in millions): December 31, December 31, 2019 2018 Accrued warranty reserve $ 745 $ 547 Build-to-suit lease liability — 1,662 Operating lease right-of-use liabilities 956 — Deferred rent expense — 59 Financing obligation 37 50 Sales return reserve 545 84 Other noncurrent liabilities 372 308 Total other long-term liabilities $ 2,655 $ 2,710 As of December 31, 2018, the table above included $1.66 billion of non-current build-to-suit lease liabilities. As a result of the adoption of the new lease standard on January 1, 2019, we have de-recognized all build-to-suit lease liabilities and have reassessed these leases to be operating lease right-of-use liabilities as of December 31, 2019. Due to price adjustments we made to our vehicle offerings during 2019, we increased our sales return reserve significantly on vehicles previously sold under our buyback options program. Refer to Note 2, Summary of Significant Accounting Policies |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Customer Deposits Disclosure [Abstract] | |
Customer Deposits | Note 11 – Customer Deposits Customer deposits primarily consisted of cash payments from customers at the time they place an order or reservation for a vehicle or an energy product and any additional payments up to the point of delivery or the completion of installation, including the fair values of any customer trade-in vehicles that are applicable toward a new vehicle purchase. Customer deposits also include prepayments on contracts that can be cancelled without significant penalties, such as vehicle maintenance plans. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 12 –Debt The following is a summary of our debt as of December 31, 2019 (in millions): Unpaid Unused Principal Net Carrying Value Committed Contractual Contractual Balance Current Long-Term Amount (1) Interest Rates Maturity Date Recourse debt: 1.25% Convertible Senior Notes due in 2021 ("2021 Notes") $ 1,380 $ — $ 1,304 $ — 1.25 % March 2021 2.375% Convertible Senior Notes due in 2022 ("2022 Notes") 978 — 902 — 2.375 % March 2022 2.00% Convertible Senior Notes due in 2024 ("2024 Notes") 1,840 — 1,383 — 2.00 % May 2024 5.30% Senior Notes due in 2025 ("2025 Notes") 1,800 — 1,782 — 5.30 % August 2025 Credit Agreement 1,727 141 1,586 499 2.7%-4.8% June 2020-July 2023 Zero-Coupon Convertible Senior Notes due in 2020 103 97 — — 0.0 % December 2020 Solar Bonds and other Loans 70 15 53 — 3.6%-5.8% March 2020-January 2031 Total recourse debt 7,898 253 7,010 499 Non-recourse debt: Automotive Asset-backed Notes 1,577 573 997 — 2.0%-7.9% February 2020- May 2023 Solar Asset-backed Notes 1,183 32 1,123 — 4.0%-7.7% September 2024-February 2048 China Loan Agreements 741 444 297 1,542 3.7%-4.0% September 2020-December 2024 Cash Equity Debt 454 10 430 — 5.3%-5.8% July 2033-January 2035 Solar Loan-backed Notes 182 11 164 — 4.8%-7.5% September 2048-September 2049 Warehouse Agreements 167 21 146 933 3.1%-3.6% September 2021 Solar Term Loans 161 8 152 — 5.4 % January 2021 Canada Credit Facility 40 24 16 — 4.2%-5.9% November 2022 Solar Renewable Energy Credit and other Loans 89 23 67 6 4.5%-7.4% March 2020-June 2022 Total non-recourse debt 4,594 1,146 3,392 2,481 Total debt $ 12,492 $ 1,399 $ 10,402 $ 2,980 The following is a summary of our debt as of December 31, 2018 (in millions): Unpaid Unused Principal Net Carrying Value Committed Contractual Contractual Balance Current Long-Term Amount (1) Interest Rates Maturity Date Recourse debt: 0.25% Convertible Senior Notes due in 2019 ("2019 Notes") $ 920 $ 913 $ — $ — 0.25 % March 2019 2021 Notes 1,380 — 1,244 — 1.25 % March 2021 2022 Notes 978 — 871 — 2.375 % March 2022 2025 Notes 1,800 — 1,779 — 5.30 % August 2025 Credit Agreement 1,540 — 1,540 231 1% plus LIBOR June 2020 1.625% Convertible Senior Notes due in 2019 566 541 — — 1.625 % November 2019 Zero-Coupon Convertible Senior Notes due in 2020 103 — 92 — 0.0 % December 2020 Vehicle, Solar Bonds and other Loans 101 1 100 — 1.8%-7.6% January 2019-January 2031 Total recourse debt 7,388 1,455 5,626 231 Non-recourse debt: Solar Asset-backed Notes 1,214 28 1,155 — 4.0%-7.7% September 2024-February 2048 Automotive Asset-backed Notes 1,178 468 704 — 2.3%-7.9% December 2019-June 2022 Cash Equity Debt 467 11 442 — 5.3%-5.8% July 2033-January 2035 Solar Term Loans 350 188 162 — 6.0%-6.1% January 2019-January 2021 Solar Loan-backed Notes 210 10 193 — 4.8%-7.5% September 2048-September 2049 Warehouse Agreements 92 14 78 1,008 3.9%-4.2% September 2020 Canada Credit Facility 73 32 41 — 3.6%-5.9% November 2022 Solar Renewable Energy Credit and other Loans 27 16 10 18 5.1%-7.9% December 2019-July 2021 Total non-recourse debt 3,611 767 2,785 1,026 Total debt $ 10,999 $ 2,222 $ 8,411 $ 1,257 (1) Unused committed amounts under some of our credit facilities and financing funds are subject to satisfying specified conditions prior to draw-down (such as pledging to our lenders sufficient amounts of qualified receivables, inventories, leased vehicles and our interests in those leases, solar energy systems and the associated customer contracts, our interests in financing funds or various other assets). Upon draw-down of any unused committed amounts, there are no restrictions on use of available funds for general corporate purposes. Recourse debt refers to debt that is recourse to our general assets. Non-recourse debt refers to debt that is recourse to only assets of our subsidiaries. The differences between the unpaid principal balances and the net carrying values are due to convertible senior note conversion features, debt discounts or deferred financing costs. As of December 31, 2019, we were in material compliance with all financial debt covenants, which include minimum liquidity and expense-coverage balances and ratios. 2019 Notes, 2021 Notes, Bond Hedges and Warrant Transactions In March 2014, we issued $800 million in aggregate principal amount of 0.25% Convertible Senior Notes due in March 2019 and $1.20 billion in aggregate principal amount of 1.25% Convertible Senior Notes due in March 2021 in a public offering. In April 2014, we issued an additional $120 million in aggregate principal amount of the 2019 Notes and $180 million in aggregate principal amount of the 2021 Notes, pursuant to the exercise in full of the overallotment options by the underwriters. The total net proceeds from the issuances, after deducting transaction costs, were $906 million for the 2019 Notes and $1.36 billion for the 2021 Notes. Each $1,000 of principal of these notes is initially convertible into 2.7788 shares of our common stock, which is equivalent to an initial conversion price of $359.87 per share, subject to adjustment upon the occurrence of specified events. Holders of these notes had the option to convert on or after December 1, 2018 for the 2019 Notes and may elect to convert on or after December 1, 2020 for the 2021 Notes. The settlement of such an election to convert the 2019 Notes was in cash and/or shares of our common stock, which we settled in cash on the maturity date. The settlement of such an election to convert the 2021 Notes would be in cash for the principal amount and, if applicable, cash and/or shares of our common stock for any conversion premium at our election. Further, holders of these notes may convert, at their option, prior to the respective dates above only under the following circumstances: (1) during a quarter in which the closing price of our common stock for at least 20 trading days (whether or not consecutive) during the last 30 consecutive trading days immediately preceding the quarter is greater than or equal to 130% of the conversion price; (2) during the five-business day period following any five-consecutive trading day period in which the trading price of these notes is less than 98% of the product of the closing price of our common stock and the applicable conversion rate for each day during such five-consecutive trading day period, or (3) if we make specified distributions to holders of our common stock or if specified corporate transactions occur. Upon such a conversion of the 2019 Notes, we would pay or deliver (as applicable) cash, shares of our common stock or a combination thereof, at our election. Upon such a conversion of the 2021 Notes, we would pay cash for the principal amount and, if applicable, deliver shares of our common stock (subject to our right to deliver cash in lieu of all or a portion of such shares of our common stock) based on a daily conversion value. If a fundamental change occurs prior to the applicable maturity date, holders of these notes may require us to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the applicable maturity date, we would increase the conversion rate for a holder who elects to convert their notes in connection with such an event in certain circumstances. As of December 31, 2019, none of the conditions permitting the holders of 2021 to early convert had been met. Therefore, the 2021 Notes are classified as long-term. In accordance with GAAP relating to embedded conversion features, we initially valued and bifurcated the conversion features associated with these notes. We recorded to stockholders’ equity $188 million for the 2019 Notes’ conversion feature and $369 million for the 2021 Notes’ conversion feature. The resulting debt discounts are being amortized to interest expense at an effective interest rate of 4.89% and 5.96%, respectively. In connection with the offering of these notes in March and April 2014, we entered into convertible note hedge transactions whereby we had the option to purchase 2.6 million shares of our common stock for the 2019 Notes and have the option to purchase initially (subject to adjustment for certain specified events) 3.8 million shares of our common stock for the 2021 Notes at a price of $359.87 per share. The total cost of the convertible note hedge transactions was $604 million. In addition, we sold warrants whereby the holders of the warrants had the option to purchase 2.6 million shares of our common stock at a price of $512.66 per share for the 2019 Notes and have the option to purchase initially (subject to adjustment for certain specified events) 3.8 million shares of our common stock at a price of $560.64 per share for the 2021 Notes. We received $389 million in total cash proceeds from the sales of these warrants. Taken together, the purchases of the convertible note hedges and the sales of the warrants are intended to reduce potential dilution and/or cash payments from the conversion of these notes and to effectively increase the overall conversion price from $359.87 to $512.66 per share for the 2019 Notes and from $359.87 to $560.64 per share for the 2021 Notes. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost incurred in connection with the convertible note hedge and warrant transactions was recorded as a reduction to additional paid-in capital on the consolidated balance sheet. During the first quarter of 2019, we repaid the $920 million in aggregate principal amount of the 2019 Notes. As of December 31, 2019, the convertible note hedges and warrants associated with the 2019 Notes have expired. As of December 31, 2019, the if-converted value of the 2021 Notes exceeds the outstanding principal amount by $224 million. 2022 Notes, Bond Hedges and Warrant Transactions In March 2017, we issued $978 million in aggregate principal amount of 2.375% Convertible Senior Notes due in March 2022 in a public offering. The net proceeds from the issuance, after deducting transaction costs, were $966 million. Each $1,000 of principal of the 2022 Notes is initially convertible into 3.0534 shares of our common stock, which is equivalent to an initial conversion price of $327.50 per share, subject to adjustment upon the occurrence of specified events. Holders of the 2022 Notes may convert, at their option, on or after December 15, 2021. Further, holders of the 2022 Notes may convert, at their option, prior to December 15, 2021 only under the following circumstances: (1) during any quarter beginning after June 30, 2017, if the closing price of our common stock for at least 20 trading days (whether or not consecutive) during the last 30 consecutive trading days immediately preceding the quarter is greater than or equal to 130% of the conversion price; (2) during the five-business day period following any five-consecutive trading day period in which the trading price of the 2022 Notes is less than 98% of the product of the closing price of our common stock and the applicable conversion rate for each day during such five-consecutive trading day period or (3) if we make specified distributions to holders of our common stock or if specified corporate transactions occur. Upon a conversion, we would pay cash for the principal amount and, if applicable, deliver shares of our common stock (subject to our right to deliver cash in lieu of all or a portion of such shares of our common stock) based on a daily conversion value. If a fundamental change occurs prior to the maturity date, holders of the 2022 Notes may require us to repurchase all or a portion of their 2022 Notes for cash at a repurchase price equal to 100% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date, we would increase the conversion rate for a holder who elects to convert its 2022 Notes in connection with such an event in certain circumstances. As of December 31, 2019, none of the conditions permitting the holders of the 2022 Notes to early convert had been met. Therefore, the 2022 Notes are classified as long-term. In accordance with GAAP relating to embedded conversion features, we initially valued and bifurcated the conversion feature associated with the 2022 Notes. We recorded to stockholders’ equity $146 million for the conversion feature. The resulting debt discount is being amortized to interest expense at an effective interest rate of 6.00%. In connection with the offering of the 2022 Notes, we entered into convertible note hedge transactions whereby we have the option to purchase initially (subject to adjustment for certain specified events) 3.0 million shares of our common stock at a price of $327.50 per share. The cost of the convertible note hedge transactions was $204 million. In addition, we sold warrants whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) 3.0 million shares of our common stock at a price of $655.00 per share. We received $53 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and the sale of the warrants are intended to reduce potential dilution from the conversion of the 2022 Notes and to effectively increase the overall conversion price from $327.50 to $655.00 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost incurred in connection with the convertible note hedge and warrant transactions was recorded as a reduction to additional paid-in capital on the consolidated balance sheet. As of December 31, 2019, the if-converted value of the notes exceeds the outstanding principal amount by $271 million. 2024 Notes, Bond Hedges and Warrant Transactions In May 2019, we issued $1.84 billion in aggregate principal amount of 2.00% Convertible Senior Notes due in May 2024 Each $1,000 of principal of the 2024 Notes is initially convertible into 3.2276 shares of our common stock, which is equivalent to an initial conversion price of $309.83 per share, subject to adjustment upon the occurrence of specified events. Holders of the 2024 Notes may convert, at their option, on or after February 15, 2024. Further, holders of the 2024 Notes may convert, at their option, prior to February 15, 2024 only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2019 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each trading day; (2) during the five-business day period after any five-consecutive trading day period in which the trading price per $1,000 principal amount of the 2024 Notes for each trading day of such period is less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day, or (3) if specified corporate events occur. Upon conversion, the 2024 Notes will be settled in cash, shares of our common stock or a combination thereof, at our election. If a fundamental change occurs prior to the maturity date, holders of the 2024 Notes may require us to repurchase all or a portion of their 2024 Notes for cash at a repurchase price equal to 100% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date, we would increase the conversion rate for a holder who elects to convert its 2024 Notes in connection with such an event in certain circumstances. As of December 31, 2019, none of the conditions permitting the holders of the 2024 Notes to early convert had been met. Therefore, the 2024 Notes are classified as long-term. In accordance with GAAP relating to embedded conversion features, we initially valued and bifurcated the conversion feature associated with the 2024 Notes. We recorded to stockholders’ equity $491 million for the conversion feature. The resulting debt discount is being amortized to interest expense at an effective interest rate of 8.68%. In connection with the offering of the 2024 Notes, we entered into convertible note hedge transactions whereby we have the option to purchase initially (subject to adjustment for certain specified events) 5.9 million shares of our common stock at a price of $309.83 per share. The cost of the convertible note hedge transactions was $476 million. In addition, we sold warrants whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) 5.9 million shares of our common stock at a price of $607.50 per share. We received $174 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and the sale of the warrants are intended to reduce potential dilution from the conversion of the 2024 Notes and to effectively increase the overall conversion price from $309.83 to $607.50 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost incurred in connection with the convertible note hedge and warrant transactions was recorded as a reduction to additional paid-in capital on the consolidated balance sheet. As of December 31, 2019, the if-converted value of the notes exceeds the outstanding principal amount by $644 million. 2025 Notes In August 2017, we issued $1.80 billion in aggregate principal amount of unsecured 5.30% Senior Notes due in August 2025 pursuant to Rule 144A and Regulation S under the Securities Act. The net proceeds from the issuance, after deducting transaction costs, were $1.77 billion. Credit Agreement In June 2015, we entered into a senior asset-based revolving credit agreement (as amended from time to time, the “Credit Agreement”) with a syndicate of banks. Borrowed funds bear interest, at our option, at an annual rate of (a) 1% plus LIBOR or (b) the highest of (i) the federal funds rate plus 0.50%, (ii) the lenders’ “prime rate” or (iii) 1% plus LIBOR. The fee for undrawn amounts is 0.25% per annum. The Credit Agreement is secured by certain of our accounts receivable, inventory and equipment. Availability under the Credit Agreement is based on the value of such assets, as reduced by certain reserves. In March 2019, we amended and restated the Credit Agreement to increase the total lender commitments by $500 million to $2.425 billion and extend the term of substantially all of the total commitments to July 2023. 1.625% Convertible Senior Notes due in 2019 In 2014, SolarCity issued $566 million in aggregate principal amount of 1.625% Convertible Senior Notes due on November 1, 2019 in a private placement. Each $1,000 of principal of the convertible senior notes was convertible into 1.3169 shares of our common stock, which is equivalent to a conversion price of $759.36 per share (subject to adjustment upon the occurrence of specified events related to dividends, tender offers or exchange offers). The maximum conversion rate was capped at 1.7449 shares for each $1,000 of principal of the convertible senior notes, which is equivalent to a minimum conversion price of $573.10 per share. The convertible senior notes did not have a cash conversion option and the convertible senior note holders could require us to repurchase their convertible senior notes for cash only under certain defined fundamental changes. In November 2019, we fully repaid $566 million in aggregate principal amount of the Notes. Zero-Coupon Convertible Senior Notes due in 2020 In December 2015, SolarCity issued $113 million in aggregate principal amount of Zero-Coupon Convertible Senior Notes due on December 1, 2020 in a private placement. $13 million of the convertible senior notes were issued to related parties (see Note 20, Related Party Transactions Each $1,000 of principal of the convertible senior notes is now convertible into 3.3333 shares of our common stock, which is equivalent to a conversion price of $300.00 per share (subject to adjustment upon the occurrence of specified events related to dividends, tender offers or exchange offers). The maximum conversion rate is capped at 4.2308 shares for each $1,000 of principal of the convertible senior notes, which is equivalent to a minimum conversion price of $236.36 per share. The convertible senior notes do not have a cash conversion option. The convertible senior note holders may require us to repurchase their convertible senior notes for cash only under certain defined fundamental changes. On or after June 30, 2017, the convertible senior notes are redeemable by us in the event that the closing price of our common stock exceeds 200% of the conversion price for 45 consecutive trading days ending within three trading days of such redemption notice at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. As of December 31, 2019, the if-converted value of the notes exceeds the outstanding principal amount by $41 million. Solar Bonds and other Loans Solar Bonds are senior unsecured obligations that are structurally subordinate to the indebtedness and other liabilities of our subsidiaries. Solar Bonds were issued under multiple series with various terms and interest rates. Additionally, we have assumed the 5.50% Convertible Senior Notes due in 2022 issued by Maxwell, which are convertible into shares of our common stock as a result of our acquisition of Maxwell. Automotive Asset-backed Notes From time to time, we transfer receivables or beneficial interests related to certain leased vehicles into SPEs and issue Automotive Asset-backed Notes, backed by these automotive assets to investors. The SPEs are consolidated in the financial statements. The cash flows generated by these automotive assets are used to service the principal and interest payments on the Automotive Asset-backed Notes and satisfy the SPEs’ expenses, and any remaining cash is distributed to the owners of the SPEs. We recognize revenue earned from the associated customer lease contracts in accordance with our revenue recognition policy. The SPEs’ assets and cash flows are not available to our other creditors, and the creditors of the SPEs, including the Automotive Asset-backed Note holders, have no recourse to our other assets. A third-party contracted with us to provide administrative and collection services for these automotive assets. In November 2019, we issued $861 million in aggregate principal amount of Automotive Asset-backed Notes. The proceeds from the issuance, net of discounts and fees, were $857 million. Solar Asset-backed Notes From time to time, our subsidiaries pool and transfer either qualifying solar energy systems and the associated customer contracts or our interests in certain financing funds into Special Purpose Entities (“SPEs”) and issue Solar Asset-backed Notes backed by these solar assets or interests to investors. The SPEs are wholly owned by us and are consolidated in the financial statements. The cash flows generated by these solar assets or distributed by the underlying financing funds to certain SPEs are used to service the principal and interest payments on the Solar Asset-backed Notes and satisfy the SPEs’ expenses, and any remaining cash is distributed to us. We recognize revenue earned from the associated customer contracts in accordance with our revenue recognition policy. The SPEs’ assets and cash flows are not available to our other creditors, and the creditors of the SPEs, including the Solar Asset-backed Note holders, have no recourse to our other assets. We contracted with the SPEs to provide operations & maintenance and administrative services for the solar energy systems. As of December 31, 2019, solar assets pledged as collateral for Solar Asset-backed Notes had a carrying value of $690 million and are included within solar energy systems, net, on the consolidated balance sheets. China Loan Agreements In March 2019, one of our subsidiaries entered into a loan agreement with a syndicate of lenders in China for a bridge loan to be used for expenditures related to the construction of and production at our Gigafactory Shanghai. The loan agreement was terminated in December 2019. In September 2019, one of our subsidiaries entered into a loan agreement with a lender in China for an unsecured 12-month revolving facility of up to RMB 5.0 billion (or the equivalent drawn in U.S. dollars), to finance vehicles in-transit to China In December 2019, one of our subsidiaries entered into loan agreements with a syndicate of lenders in China for: (i) a secured term loan facility of up to RMB 9.0 billion or the equivalent amount drawn in U.S. dollars (the “Fixed Asset Facility”) and (ii) an unsecured revolving loan facility of up to RMB 2.25 billion or the equivalent amount drawn in U.S. dollars (the “Working Capital Facility”), in each case to be used in connection with our construction of and production at our Gigafactory Shanghai. Outstanding borrowings pursuant to the Fixed Asset Facility accrue interest at a rate equal to: (i) for RMB-denominated loans, the market quoted interest rate published by the People’s Bank of China minus 0.7625%, and (ii) for U.S. dollar-denominated loans, the sum of one-year LIBOR plus 1.3%. Outstanding borrowings pursuant to the Working Capital Facility accrue interest at a rate equal to: (i) for RMB-denominated loans, the market quoted interest rate published by the People’s Bank of China minus 0.4525%, and (ii) for U.S. dollar-denominated loans, the sum of one-year LIBOR plus 0.8%. The Fixed Asset Facility is secured by the land and buildings at Gigafactory Shanghai and both facilities are non-recourse to our other assets. Cash Equity Debt In connection with the cash equity financing deals closed in 2016, our subsidiaries issued $502 million in aggregate principal amount of debt that bears interest at fixed rates. This debt is secured by, among other things, our interests in certain financing funds and is non-recourse to our other assets. Solar Loan-backed Notes In January 2016 and January 2017, our subsidiaries pooled and transferred certain MyPower customer notes receivable into two SPEs and issued $330 million in aggregate principal amount of Solar Loan-backed Notes, backed by these notes receivable to investors. Accordingly, we did not recognize a gain or loss on the transfer of these notes receivable. Warehouse Agreements In August 2016, our subsidiaries entered into a loan and security agreement (the “2016 Warehouse Agreement”) for borrowings secured by the future cash flows arising from certain leases and the associated leased vehicles. On August 17, 2017, the 2016 Warehouse Agreement was amended to modify the interest rates and extend the availability period and the maturity date, and our subsidiaries entered into another loan and security agreement (the “2017 Warehouse Agreement”) with substantially the same terms as and that shares the same committed amount with the 2016 Warehouse Agreement. On August 16, 2018, the 2016 Warehouse Agreement and 2017 Warehouse Agreement were amended to extend the availability period from August 17, 2018 to August 16, 2019 and extend the maturity date from September 2019 to September 2020 Pursuant to the Warehouse Agreements, an undivided beneficial interest in the future cash flows arising from certain leases and the related leased vehicles has been sold for legal purposes but continues to be reported in the consolidated financial statements. The interest in the future cash flows arising from these leases and the related vehicles is not available to pay the claims of our creditors other than pursuant to obligations to the lenders under the Warehouse Agreements. In August 2019, our subsidiaries amended the Warehouse Agreements to extend the availability period from August 16, 2019 to August 14, 2020 and extend the maturity date from September 2020 to September 2021 In November 2019, we repaid $723 million of the principal outstanding under the Warehouse Agreements. Solar Term Loans Our subsidiaries have entered into agreements for term loans with various financial institutions. The term loans are secured by substantially all of the assets of the subsidiaries, including its interests in certain financing funds, and are non-recourse to our other assets. During the fourth quarter of 2019, we fully repaid the $159 million in aggregate principal of one term loan. Canada Credit Facility In December 2016, one of our subsidiaries entered into a credit agreement (the “Canada Credit Facility”) with a bank for borrowings secured by our interests in certain vehicle leases. In December 2017 and December 2018, the Canada Credit Facility was amended to add our interests in additional vehicle leases as collateral, allowing us to draw additional funds. Amounts drawn under the Canada Credit Facility bear interest at fixed rates. The Canada Credit Facility is non-recourse to our other assets. Solar Renewable Energy Credit and other Loans We have entered into various solar renewable energy credit and other loan agreements with various financial institutions, including a solar revolving credit facility. The solar renewable energy credit loan facility is secured by substantially all of the assets of one of our wholly owned subsidiaries, including its rights under forward contracts to sell SRECs, and is non-recourse to our other assets. The solar revolving credit facility is secured by certain assets of the subsidiary and is non-recourse to our other assets. Interest Expense The following table presents the interest expense related to the contractual interest coupon, the amortization of debt issuance costs and the amortization of debt discounts on our convertible senior notes with cash conversion features, which include the 1.50% Convertible Senior Notes due in 2018, the 2019 Notes, the 2021 Notes, the 2022 Notes and the 2024 Notes (in millions): Year Ended December 31, 2019 2018 2017 Contractual interest coupon $ 65 $ 43 $ 39 Amortization of debt issuance costs 7 7 7 Amortization of debt discounts 148 123 114 Total $ 220 $ 173 $ 160 Pledged Assets As of December 31, 2019 and 2018, we had pledged or restricted $5.72 Schedule of Principal Maturities of Debt The future scheduled principal maturities of debt as of December 31, 2019 were as follows (in millions): Recourse debt Non-recourse debt Total 2020 $ 259 $ 1,155 $ 1,414 2021 1,382 909 2,291 2022 1,024 1,013 2,037 2023 1,586 199 1,785 2024 1,840 558 2,398 Thereafter 1,807 760 2,567 Total $ 7,898 $ 4,594 $ 12,492 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 13 – Leases We have entered into various non-cancellable operating and finance lease agreements for certain of our offices, manufacturing and warehouse facilities, retail and service locations, equipment, vehicles, and solar energy systems, worldwide. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our leases, where we are the lessee, often include options to extend the lease term for up to 10 years Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Certain operating leases provide for annual increases to lease payments based on an index or rate. We calculate the present value of future lease payments based on the index or rate at the lease commencement date for new leases commencing after January 1, 2019. For historical leases, we used the index or rate as of the adoption date. Differences between the calculated lease payment and actual payment are expensed as incurred. Lease expense for finance lease payments is recognized as amortization expense of the finance lease ROU asset and interest expense on the finance lease liability over the lease term. The balances for the operating and finance leases where we are the lessee are presented as follows (in millions) within our consolidated balance sheet: December 31, 2019 Operating leases: Operating lease right-of-use assets $ 1,218 Accrued liabilities and other $ 228 Other long-term liabilities 956 Total operating lease liabilities $ 1,184 Finance leases: Solar energy systems, net $ 30 Property, plant and equipment, net 1,600 Total finance lease assets $ 1,630 Current portion of long-term debt and finance leases $ 386 Long-term debt and finance leases, net of current portion 1,232 Total finance lease liabilities $ 1,618 The components of lease expense are as follows (in millions) within our consolidated statements of operations: Year Ended December 31, 2019 Operating lease expense: Operating lease expense (1) $ 426 Finance lease expense: Amortization of leased assets $ 299 Interest on lease liabilities 104 Total finance lease expense $ 403 Total lease expense $ 829 (1) Includes short-term leases and variable lease costs, which are immaterial. Other information related to leases where we are the lessee is as follows: December 31, 2019 Weighted-average remaining lease term: Operating leases 6.2 years Finance leases 3.9 years Weighted-average discount rate: Operating leases 6.5 % Finance leases 6.5 % Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. Supplemental cash flow information related to leases where we are the lessee is as follows (in millions) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 396 Operating cash outflows from finance leases (interest payments) $ 104 Financing cash outflows from finance leases $ 321 Leased assets obtained in exchange for finance lease liabilities $ 616 Leased assets obtained in exchange for operating lease liabilities $ 202 As of December 31, 2019 (in millions): Operating Finance Leases Leases 2020 $ 296 $ 474 2021 262 478 2022 210 600 2023 174 224 2024 146 5 Thereafter 372 13 Total minimum lease payments 1,460 1,794 Less: Interest 276 176 Present value of lease obligations 1,184 1,618 Less: Current portion 228 386 Long-term portion of lease obligations $ 956 $ 1,232 Under legacy lease accounting (ASC 840), future minimum lease payments under non-cancellable leases as of December 31, 2018 are as follows (in millions): Operating Finance Leases Leases 2019 $ 276 $ 417 2020 257 503 2021 230 506 2022 183 24 2023 158 5 Thereafter 524 6 Total minimum lease payments $ 1,628 1,461 Less: Interest 122 Present value of lease obligations 1,339 Less: Current portion 346 Long-term portion of lease obligations $ 993 Non-cancellable Operating Lease Receivables Under the new lease standard, we are the lessor of certain vehicle arrangements as described in Note 2, Summary of Significant Accounting Policies Following the adoption of the new lease standard, solar energy system leases and PPAs that commenced after January 1, 2019, where we are the lessor and were previously accounted for as leases, no longer meet the definition of a lease and are therefore not included in the table as of December 31, 2019 (refer to Note 2, Summary of Significant Accounting Policies ). As of December 31, 2019, maturities of our operating lease receivables from customers for each of the next five years and thereafter were as follows (in millions): 2020 $ 644 2021 494 2022 317 2023 190 2024 191 Thereafter 2,294 Total $ 4,130 U nder legacy lease accounting (ASC 840), future minimum lease payments to be received from customers under non-cancellable leases as of December 31, 2018 are as follows (in millions): 2019 $ 502 2020 418 2021 271 2022 187 2023 189 Thereafter 2,469 Total $ 4,036 The above tables do not include vehicle sales to customers or leasing partners with a resale value guarantee as the cash payments were received upfront. For our solar PPA arrangements, customers are charged solely based on actual power produced by the installed solar energy system at a predefined rate per kilowatt-hour of power produced. The future payments from such arrangements are not included in the above table as they are a function of the power generated by the related solar energy systems in the future. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plans | Note 14 – Equity Incentive Plans In June 2019, we adopted the 2019 Equity Incentive Plan (the “2019 Plan”), and simultaneously terminated the 2010 Equity Incentive Plan (the “2010 Plan”). No new awards have been granted under the 2010 Plan following the adoption of the 2019 Plan, but such termination did not affect outstanding awards under the 2010 Plan. The 2019 Plan has similar terms as the 2010 Plan and provides for the granting of stock options, restricted stock, RSUs, stock appreciation rights, performance units and performance shares to our employees, directors and consultants. Stock options granted under the 2019 Plan may be either incentive stock options or nonstatutory stock options. Incentive stock options may only be granted to our employees. Nonstatutory stock options may be granted to our employees, directors and consultants. Generally, our stock options and RSUs vest over four years and our stock options are exercisable over a maximum period of 10 years from their grant dates. Vesting typically terminates when the employment or consulting relationship ends. As of December 31, 2019, 11 million shares were reserved and available for issuance under the 2019 Plan. The following table summarizes our stock option and RSU activity: Stock Options RSUs Weighted- Weighted- Weighted- Average Aggregate Average Number of Average Remaining Intrinsic Number Grant Options Exercise Contractual Value of RSUs Date Fair (in Price Life (years) (in billions) (in Value Balance, December 31, 2018 31,208 $ 273.40 4,659 $ 294.63 Granted 1,473 $ 265.26 3,752 $ 282.74 Exercised or released (1,441 ) $ 106.68 (1,949 ) $ 277.13 Cancelled (1,245 ) $ 310.57 (1,656 ) $ 295.05 Balance, December 29,995 $ 279.49 6.89 $ 4.17 4,806 $ 291.06 Vested and expected December 31, 2019 15,860 $ 228.29 6.05 $ 3.02 4,804 $ 291.05 Exercisable and vested, December 31, 2019 7,025 $ 94.07 3.39 $ 2.28 The weighted-average grant date fair value of RSUs in the years ended December 31, 2019, 2018, and 2017 was $282.74, $316.46 and $308.71, respectively. The aggregate release date fair value of RSUs in the years ended December 31, 2019, 2018 and 2017 was $502 million, $546 million and $491 million, respectively. The aggregate intrinsic value of options exercised in the years ended December 31, 2019, 2018, and 2017 was $237 million, $293 million and $544 million, respectively. Fair Value Assumptions We use the fair value method in recognizing stock-based compensation expense. Under the fair value method, we estimate the fair value of each stock option award with service or service and performance conditions and the ESPP on the grant date generally using the Black-Scholes option pricing model and the weighted-average assumptions in the following table: Year Ended December 31, 2019 2018 2017 Risk-free interest rate: Stock options 2.4 % 2.5 % 1.8 % ESPP 2.2 % 2.0 % 1.1 % Expected term (in years): Stock options 4.5 4.7 5.1 ESPP 0.5 0.5 0.5 Expected volatility: Stock options 48 % 42 % 42 % ESPP 53 % 43 % 35 % Dividend yield: Stock options 0.0 % 0.0 % 0.0 % ESPP 0.0 % 0.0 % 0.0 % Grant date fair value per share: Stock options $ 111.59 $ 121.92 $ 122.25 ESPP $ 78.25 $ 84.37 $ 75.05 The fair value of RSUs with service or service and performance conditions is measured on the grant date based on the closing fair market value of our common stock. The risk-free interest rate is based on the U.S. Treasury yield for zero-coupon U.S. Treasury notes with maturities approximating each grant’s expected life. Prior to the fourth quarter of 2017, given our then limited history with employee grants, we used the “simplified” method in estimating the expected term of our employee grants; the simplified method utilizes the average of the time-to-vesting and the contractual life of the employee grant. Beginning with the fourth quarter of 2017, we use our historical data in estimating the expected term of our employee grants. The expected volatility is based on the average of the implied volatility of publicly traded options for our common stock and the historical volatility of our common stock. 2018 CEO Performance Award In March 2018, our stockholders approved the Board of Directors’ grant of 20,264,042 stock option awards to our CEO (the “2018 CEO Performance Award”). The 2018 CEO Performance Award consists of 12 vesting tranches with a vesting schedule based entirely on the attainment of both operational milestones (performance conditions) and market conditions, assuming continued employment either as the CEO or as both Executive Chairman and Chief Product Officer and service through each vesting date. Each of the 12 vesting tranches of the 2018 CEO Performance Award will vest upon certification by the Board of Directors that both (i) the market capitalization milestone for such tranche, which begins at $100 billion for the first tranche and increases by increments of $50 billion thereafter, and (ii) any one of the following eight operational milestones focused on revenue or eight operational milestones focused on Adjusted EBITDA have been met for the previous four consecutive fiscal quarters on an annualized basis. Adjusted EBITDA is defined as net income (loss) attributable to common stockholders before interest expense, provision (benefit) for income taxes, depreciation and amortization and stock-based compensation. Total Annualized Revenue Annualized Adjusted EBITDA (in billions) $20.0 $1.5 $35.0 $3.0 $55.0 $4.5 $75.0 $6.0 $100.0 $8.0 $125.0 $10.0 $150.0 $12.0 $ 175.0 $14.0 As of December 31, 2019, two operational milestones have been achieved: (i) $20.0 billion total annualized revenue and (ii) $1.5 billion annualized adjusted EBITDA, each subject to the formal certification by our Board of Directors, while no market capitalization milestones have been achieved. Consequently, no shares subject to the 2018 CEO Performance Award have vested as of the date of this filing. As of December 31, 2019, the following operational milestones were considered probable of achievement: • Adjusted EBITDA of $3.0 billion • Total revenue of $35.0 billion Stock-based compensation expense associated with each tranche under the 2018 CEO Performance Award is recognized over the longer of (i) the expected achievement period for the operational milestone for such tranche and (ii) the expected achievement period for the related market capitalization milestone determined on the grant date, beginning at the point in time when the relevant operational milestone is considered probable of being met. If such operational milestone becomes probable any time after the grant date, we will recognize a cumulative catch-up expense from the grant date to that point in time. If the related market capitalization milestone is achieved earlier than its expected achievement period and the achievement of the related operational milestone, then the stock-based compensation expense will be recognized over the expected achievement period for the operational milestone, which may accelerate the rate at which such expense is recognized. The market capitalization milestone period and the valuation of each tranche are determined using a Monte Carlo simulation and is used as the basis for determining the expected achievement period. The probability of meeting an operational milestone is based on a subjective assessment of our future financial projections. tranches of the 2018 CEO Performance Award will vest unless a market capitalization and a matching operational milestone are both achieved. The first tranche of the 2018 CEO Performance Award will not vest unless our market capitalization were to approximately double from the initial level at the time the award was approved, based on both a six calendar month trailing average and a 30 calendar day trailing average (counting only trading days). Upon vesting of a tranche, all unamortized expense for the tranche will be recognized immediately. Additionally, stock-based compensation represents a non-cash expense and is recorded as a selling, general, and administrative operating expense in our consolidated statement of operations. As of December 31, 2019, we had $527 million of total unrecognized stock-based compensation expense for the operational milestones that were considered probable of achievement, which will be recognized over a weighted-average period of 2.72 years. As of December 31, 2019, we had unrecognized stock-based compensation expense of $1.29 billion for the operational milestones that were considered not probable of achievement. For the year ended December 31, 2019, we recorded stock-based compensation expense of $296 million related to the 2018 CEO Performance Award. From March 21, 2018, when the grant was approved by our stockholders, through December 31, 2018, we recorded stock-based compensation expense of $175 million related to this award. The increase in stock-based compensation expense was primarily related to a $72 million cumulative catch-up expense for the service provided from the grant date when an additional operational milestone was considered probable of being met in the fourth quarter of 2019 and a shorter expense period in the prior year. 2014 Performance-Based Stock Option Awards In 2014, to create incentives for continued long-term success beyond the Model S program and to closely align executive pay with our stockholders’ interests in the achievement of significant milestones by us, the Compensation Committee of our Board of Directors granted stock option awards to certain employees (excluding our CEO) to purchase an aggregate of 1,073,000 shares of our common stock. Each award consisted of the following four vesting tranches with the vesting schedule based entirely on the attainment of the future performance milestones, assuming continued employment and service through each vesting date: • 1/4 • 1/4th • 1/4th • 1/4th As of December 31, 2019, the following performance milestones had been achieved: • Completion of the first Model X production vehicle; • Completion of the first Model 3 production vehicle; and • Aggregate production of 100,000 vehicles in a trailing 12-month period. We begin recognizing stock-based compensation expense as each performance milestone becomes probable of achievement. As of December 31, 2019, we had unrecognized stock-based compensation expense of $5 million for the performance milestone that was considered not probable of achievement. For the years ended December 31, 2019 and 2018, we did not record any additional stock-based compensation related to these awards. For the year ended December 2017, we recorded stock-based compensation expense of $7 million related to these awards. 2012 CEO Performance Award In August 2012, our Board of Directors granted 5,274,901 stock option awards to our CEO (the “2012 CEO Performance Award”). The 2012 CEO Performance Award consists of 10 vesting tranches with a vesting schedule based entirely on the attainment of both performance conditions and market conditions, assuming continued employment and service through each vesting date. Each vesting tranche requires a combination of a pre-determined performance milestone and an incremental increase in our market capitalization of $4.00 billion, as compared to our initial market capitalization of $3.20 billion at the time of grant. As of December 31, 2019 • Successful completion of the Model X alpha prototype; • Successful completion of the Model X beta prototype; • Completion of the first Model X production vehicle; • Aggregate production of 100,000 vehicles; • Successful completion of the Model 3 alpha prototype; • Successful completion of the Model 3 beta prototype; • Completion of the first Model 3 production vehicle; • Aggregate production of 200,000 vehicles; and • Aggregate production of 300,000 vehicles. We begin recognizing stock-based compensation expense as each milestone becomes probable of achievement. As of December 31, 2019, we had unrecognized stock-based compensation expense of $6 million for the performance milestone that was considered not probable of achievement. For the year ended December 31, 2019, we recorded no stock-based compensation expense related to the 2012 CEO Performance Award. For the year ended December 31, 2018, the stock-based compensation we recorded related to this award was immaterial. For the year ended December 31, 2017, we recorded stock-based compensation expense of $5 million related to this award. Our CEO his Summary Stock-Based Compensation Information The following table summarizes our stock-based compensation expense by line item in the consolidated statements of operations (in millions): Year Ended December 31, 2019 2018 2017 Cost of revenues $ 128 $ 109 $ 64 Research and development 285 261 218 Selling, general and administrative 482 375 185 Restructuring and other 3 4 — Total $ 898 $ 749 $ 467 We realized no income tax benefit from stock option exercises in each of the periods presented due to cumulative losses and valuation allowances. As of December 31, 2019, we had $1.57 billion of total unrecognized stock-based compensation expense related to non-performance awards, which will be recognized over a weighted-average period of 2.91 years. ESPP Our employees are eligible to purchase our common stock through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The purchase price would be 85% of the lower of the fair market value on the first and last trading days of each six-month offering period. During the years ended December 31, 2019, 2018 and 2017, we issued 0.5 million, 0.4 million and 0.4 million shares under the ESPP with an associated expense of $40 million, $109 million and $71 million, respectively. There were 7 million shares available for issuance under the ESPP as of December 31, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15 – Income Taxes A provision for income taxes of $110 million, $58 million and $32 million has been recognized for the years ended December 31, 2019, 2018 and 2017, respectively, related primarily to our subsidiaries located outside of the U.S. Our loss before provision for income taxes for the years ended December 31, 2019, 2018 and 2017 was as follows (in millions): Year Ended December 31, 2019 2018 2017 Domestic $ 287 $ 412 $ 993 Noncontrolling interest and redeemable noncontrolling interest (87 ) 87 279 Foreign 465 506 937 Loss before income taxes $ 665 $ 1,005 $ 2,209 The components of the provision for income taxes for the years ended December 31, 2019, 2018 and 2017 consisted of the following (in millions): Year Ended December 31, 2019 2018 2017 Current: Federal $ — $ (1 ) $ (10 ) State 5 3 2 Foreign 86 24 43 Total current 91 26 35 Deferred: Federal (4 ) — — State — — — Foreign 23 32 (3 ) Total deferred 19 32 (3 ) Total provision for income taxes $ 110 $ 58 $ 32 On December 22, 2017, the 2017 Tax Cuts and Jobs Act (“Tax Act”) was enacted into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. We were required to recognize the effect of the tax law changes in the period of enactment, such as re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. The Tax Act did not give rise to any material impact on the consolidated balance sheets and consolidated statements of operations due to our historical worldwide loss position and the full valuation allowance on our net U.S. deferred tax assets. Deferred tax assets (liabilities) as of December 31, 2019 and 2018 consisted of the following (in millions): December 31, December 31, 2019 2018 Deferred tax assets: Net operating loss carry-forwards $ 1,846 $ 1,760 Research and development credits 486 377 Other tax credits 126 128 Deferred revenue 301 156 Inventory and warranty reserves 243 165 Stock-based compensation 102 102 Operating lease right-of-use liabilities 290 — Accruals and others 16 28 Total deferred tax assets 3,410 2,716 Valuation allowance (1,956 ) (1,806 ) Deferred tax assets, net of valuation allowance 1,454 910 Deferred tax liabilities: Depreciation and amortization (1,185 ) (861 ) Investment in certain financing funds (17 ) (33 ) Operating lease right-of-use assets (263 ) — Other (24 ) (24 ) Total deferred tax liabilities (1,489 ) (918 ) Deferred tax liabilities, net of valuation allowance and deferred tax assets $ (35 ) $ (8 ) As of December 31, 2019, we recorded a valuation allowance of $1.96 billion for the portion of the deferred tax asset that we do not expect to be realized. The valuation allowance on our net deferred taxes increased by $150 million, decreased by $38 million, and increased by $821 million during the years ended December 31, 2019, 2018 and 2017, respectively. The changes in valuation allowance are primarily due to additional U.S. deferred tax assets and liabilities incurred in the respective year. We have net $151 million of deferred tax assets in foreign jurisdictions, which management believes are more-likely-than-not to be fully realized given the expectation of future earnings in these jurisdictions. We continue to monitor the realizability of the U.S. deferred tax assets taking into account multiple factors, including the results of operations and magnitude of excess tax deductions for stock-based compensation. We intend to continue maintaining a full valuation allowance on our U.S. deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. Release of all, or a portion, of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2019, 2018 and 2017 was as follows (in millions): Year Ended December 31, 2019 2018 2017 Tax at statutory federal rate $ (139 ) $ (211 ) $ (773 ) State tax, net of federal benefit 5 3 2 Nondeductible expenses 94 65 30 Excess tax benefits related to stock based compensation (1) (7 ) (44 ) (1,013 ) Foreign income rate differential 189 161 365 U.S. tax credits (107 ) (80 ) (110 ) Noncontrolling interests and redeemable noncontrolling interests adjustment (29 ) 32 66 Effect of U.S. tax law change — — 723 Bargain in purchase gain — — 20 Convertible debt (4 ) — — Unrecognized tax benefits 17 1 3 Change in valuation allowance 91 131 719 Provision for income taxes $ 110 $ 58 $ 32 (1) As of January 1, 2017, upon the adoption of ASU No. 2016-09, Improvements to Employee Share-based Payment Accounting, excess tax benefits from share-based award activity incurred from the prior and current years are reflected as a reduction of the provision for income taxes. The excess tax benefits result in an increase to our gross U.S. deferred tax assets that is offset by a corresponding increase to our valuation allowance. As of December 31, 2019, we had $7.51 billion of federal and $6.16 billion of state net operating loss carry-forwards available to offset future taxable income, which will not begin to significantly expire until 2024 for federal and 2028 for state purposes. A portion of these losses were generated by SolarCity prior to our acquisition in 2016 and, therefore, are subject to change of control provisions, which limit the amount of acquired tax attributes that can be utilized in a given tax year. We do not expect these change of control limitations to significantly impact our ability to utilize these attributes. As of December 31, 2019, we had research and development tax credits of $320 million and $284 million for federal and state income tax purposes, respectively. If not utilized, the federal research and development tax credits will expire in various amounts beginning in 2024. However, the state research and development tax credits can be carried forward indefinitely. In addition, we have other general business tax credits of $125 million for federal income tax purposes, which will not begin to significantly expire until 2033. No deferred tax liabilities for foreign withholding taxes have been recorded relating to the earnings of our foreign subsidiaries since all such earnings are intended to be indefinitely reinvested. The amount of the unrecognized deferred tax liability associated with these earnings is immaterial. Federal and state laws can impose substantial restrictions on the utilization of net operating loss and tax credit carry-forwards in the event of an “ownership change,” as defined in Section 382 of the Internal Revenue Code. We have determined that no significant limitation would be placed on the utilization of our net operating loss and tax credit carry-forwards due to prior ownership changes. Uncertain Tax Positions The changes to our gross unrecognized tax benefits were as follows (in millions): December 31, 2016 $ 204 Decreases in balances related to prior year tax positions (31 ) Increases in balances related to current year tax positions 84 Changes in balances related to effect of U.S. tax law change (58 ) December 31, 2017 199 Decreases in balances related to prior year tax positions (6 ) Increases in balances related to current year tax positions 60 December 31, 2018 253 Decreases in balances related to prior year tax positions (39 ) Increases in balances related to current year tax positions 59 December 31, 2019 $ 273 As of December 31, 2019, accrued interest and penalties related to unrecognized tax benefits are classified as income tax expense and were immaterial. Unrecognized tax benefits of $247 million, if recognized, would not affect our effective tax rate since the tax benefits would increase a deferred tax asset that is currently fully offset by a full valuation allowance. We file income tax returns in the U.S., California and various state and foreign jurisdictions. We are currently under examination by the IRS for the years 2015 and 2016. Additional tax years within the period 2004 to 2018 remain subject to examination for federal income tax purposes, and tax years 2004 to 2018 remain subject to examination for California income tax purposes. All net operating losses and tax credits generated to date are subject to adjustment for U.S. federal and California income tax purposes. Tax years 2008 to 2018 remain subject to examination in other U.S. state and foreign jurisdictions. The potential outcome of the current examination could result in a change to unrecognized tax benefits within the next twelve months. However, we cannot reasonably estimate possible adjustments at this time. The U.S. Tax Court issued a decision in Altera Corp v. Commissioner |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16 – Commitments and Contingencies Operating Lease Arrangement in Buffalo, New York We have an operating lease through the Research Foundation for the State University of New York (the “SUNY Foundation”) for a manufacturing facility constructed on behalf of the SUNY Foundation and which was substantially completed in April 2018. We use this facility, referred to as Gigafactory New York Following the adoption of ASC 842, we no longer recognize the build-to-suit asset and related depreciation expense or the corresponding financing liability and related amortization for Gigafactory New York in our consolidated financial statements. Under the terms of the operating lease arrangement, we are required to achieve specific operational milestones during the initial lease term; which include employing a certain number of employees at the manufacturing facility, within western New York and within the State of New York within specified periods following the completion of the manufacturing facility. We are also required to spend or incur $5.00 billion in combined capital, operational expenses and other costs in the State of New York within 10 years following the achievement of full production. On an annual basis during the initial lease term, as measured on each anniversary of the commissioning of the manufacturing facility, if we fail to meet these specified investment and job creation requirements, then we would be obligated to pay a $41 million “program payment” to the SUNY Foundation for each year that we fail to meet these requirements. Furthermore, if the arrangement is terminated due to a material breach by us, then additional amounts might become payable by us. As of December 31, 2019, we have met the targets as of the applicable measurement dates and anticipate meeting the remaining obligations through our operations at this facility and other operations within the State of New York. Operating Lease Arrangement in Shanghai, China We have an operating lease arrangement for an initial term of 50 years with the local government of Shanghai for land use rights where we are constructing Gigafactory Shanghai. Under the terms of the arrangement, we are required to spend RMB 14.08 billion in capital expenditures, and to generate RMB 2.23 billion of annual tax revenues starting at the end of 2023. If we are unwilling or unable to meet such target or obtain periodic project approvals, in accordance with the Chinese government’s standard terms for such arrangements, we would be required to revert the site to the local government and receive compensation for the remaining value of the land lease, buildings and fixtures. We believe the capital expenditure requirement and the tax revenue target will be attainable even if our actual vehicle production was far lower than the volumes we are forecasting. Legal Proceedings Securities Litigation Relating to the SolarCity Acquisition Between September 1, 2016 and October 5, 2016, seven lawsuits were filed in the Delaware Court of Chancery by purported stockholders of Tesla challenging our acquisition of SolarCity. Following consolidation, the lawsuit names as defendants the members of Tesla’s board of directors as then constituted and alleges, among other things, that board members breached their fiduciary duties in connection with the acquisition. The complaint asserts both derivative claims and direct claims on behalf of a purported class and seeks, among other relief, unspecified monetary damages, attorneys’ fees, and costs. On January 27, 2017, defendants filed a motion to dismiss the operative complaint. Rather than respond to the defendants’ motion, the plaintiffs filed an amended complaint. On March 17, 2017, defendants filed a motion to dismiss the amended complaint. On December 13, 2017, the Court heard oral argument on the motion. On March 28, 2018, the Court denied defendants’ motion to dismiss. Defendants filed a request for interlocutory appeal, but the Delaware Supreme Court denied that request without ruling on the merits but electing not to hear an appeal at this early stage of the case. Defendants filed their answer on May 18, 2018, and mediations were held on June 10, 2019. Plaintiffs and defendants filed respective motions for summary judgment on August 25, 2019, and further mediations were held on October 3, 2019. The Court held a hearing on the motions for summary judgment on November 4, 2019. On January 22, 2020, all of the director defendants except Elon Musk reached a tentative settlement to resolve the lawsuit against them for an amount that would be paid entirely under the applicable insurance policy. The settlement does not involve an admission of any wrongdoing by any party. Tesla will receive such amount, which would be recognized as a gain in its financial statements, if the settlement is finally approved by the Court. On February 4, 2020, the Court issued a ruling that denied plaintiffs’ previously-filed motion and granted in part and denied in part defendants’ previously-filed motion. Fact and expert discovery is complete, and the case is set for trial in March 2020. These plaintiffs and others filed parallel actions in the U.S. District Court for the District of Delaware on or about April We believe that claims challenging the SolarCity acquisition are without merit and intend to defend against them vigorously. We are unable to estimate the possible loss or range of loss, if any, associated with these claims. Securities Litigation Relating to Production of Model 3 Vehicles On On October 26, 2018, in a similar action, a purported stockholder class action was filed in the Superior Court of California in Santa Clara County against Tesla, Elon Musk and seven initial purchasers in an offering of debt securities by Tesla in August 2017. The complaint alleges misrepresentations made by Tesla regarding the number of Model 3 vehicles Tesla expected to produce by the end of 2017 in connection with such offering and seeks unspecified compensatory damages and other relief on behalf of a purported class of purchasers of Tesla securities in such offering. Tesla thereafter removed the case to federal court. On January 22, 2019, plaintiff abandoned its effort to proceed in state court, instead filing an amended complaint against Tesla, Elon Musk and seven initial purchasers in the debt offering before the same judge in the U.S. District Court for the Northern District of California who is hearing the above-referenced earlier filed federal case. On February 5, 2019, the Court stayed this new case pending a ruling on the motion to dismiss the complaint in such earlier filed federal case. After such earlier filed federal case was dismissed, defendants filed a motion on July 2, 2019 to dismiss this case as well. This case is now stayed pending a ruling from the appellate court on such earlier filed federal case with an agreement that if defendants prevail on appeal in such case, this case will be dismissed. We believe that the claims are without merit and intend to defend against this lawsuit vigorously. We are unable to estimate the possible loss or range of loss, if any, associated with this lawsuit. Litigation Relating to 2018 CEO Performance Award On June 4, 2018, a purported Tesla stockholder filed a putative class and derivative action in the Delaware Court of Chancery against Elon Musk and the members of Tesla’s board of directors as then constituted, alleging corporate waste, unjust enrichment and that such board members breached their fiduciary duties by approving the stock-based compensation plan. The complaint seeks, among other things, monetary damages and rescission or reformation of the stock-based compensation plan. On August 31, 2018, defendants filed a motion to dismiss the complaint; plaintiff filed its opposition brief on November 1, 2018 and defendants filed a reply brief on December 13, 2018. The hearing on the motion to dismiss was held on May 9, 2019. On September 20, 2019, the Court granted the motion to dismiss as to the corporate waste claim but denied the motion as to the breach of fiduciary duty and unjust enrichment claims. Our answer was filed on December 3, 2019, and trial is set for June 2021. We believe the claims asserted in this lawsuit are without merit and intend to defend against them vigorously. Securities Litigation Relating to Potential Going Private Transaction Between August 10, 2018 and September 6, 2018, nine purported stockholder class actions were filed against Tesla and Elon Musk in connection with Elon Musk’s August 7, 2018 Twitter post that he was considering taking Tesla private. All of the suits are now pending in the U.S. District Court for the Northern District of California. Although the complaints vary in certain respects, they each purport to assert claims for violations of federal securities laws related to Mr. Musk’s statement and seek unspecified compensatory damages and other relief on behalf of a purported class of purchasers of Tesla’s securities. Plaintiffs filed their consolidated complaint on January 16, 2019 and added as defendants the members of Tesla’s board of directors. The now-consolidated purported stockholder class action was stayed while the issue of selection of lead counsel was briefed and argued before the U.S. Court of Appeals for the Ninth Circuit. The Ninth Circuit ruled regarding lead counsel. Defendants filed a motion to dismiss the complaint on November 22, 2019. The hearing on the motion is set for March 6, 2020. We believe that the claims have no merit and intend to defend against them vigorously. We are unable to estimate the potential loss, or range of loss, associated with these claims. Between October 17, 2018 and November 9, 2018, five derivative lawsuits were filed in the Delaware Court of Chancery against Mr. Musk and the members of Tesla’s board of directors as then constituted in relation to statements made and actions connected to a potential going private transaction. In addition to these cases, on October 25, 2018, another derivative lawsuit was filed in the U.S. District Court for the District of Delaware against Mr. Musk and the members of the Tesla board of directors as then constituted. The Courts in both the Delaware federal court and Delaware Court of Chancery actions have consolidated their respective actions and stayed each consolidated action pending resolution of the above-referenced consolidated purported stockholder class action. We believe that the claims have no merit and intend to defend against them vigorously. We are unable to estimate the potential loss, or range of loss, associated with these claims. On March 7, 2019, various stockholders filed a derivative suit in the Delaware Court of Chancery, purportedly on behalf of the Company, naming Elon Musk and Tesla’s board of directors, also related to Mr. Musk’s August 7, 2018 Twitter post that is the basis of the above-referenced consolidated purported stockholder class action as well as Mr. Musk’s February 19, 2019 Twitter post regarding Tesla’s vehicle production. The suit asserts claims for breach of fiduciary duty and seeks declaratory and injunctive relief, unspecified damages, and other relief. Plaintiffs moved for expedited proceedings in connection with the declaratory and injunctive relief. Briefs were filed on March 13, 2019 and the hearing held on March 18, 2019. Defendants prevailed, with the Court denying plaintiffs’ request for an expedited trial and granting defendants’ request to stay this action pending the outcome of the above-referenced consolidated purported stockholder class action. Settlement with SEC related to Potential Going Private Transaction On October 16, 2018, the U.S. District Court for the Southern District of New York entered a final judgment approving the terms of a settlement filed with the Court on September 29, 2018, in connection with the actions taken by the U.S. Securities and Exchange Commission (the “SEC”) relating to Elon Musk’s prior statement that he was considering taking Tesla private. Without admitting or denying any of the SEC’s allegations, and with no restriction on Mr. Musk’s ability to serve as an officer or director on the Board (other than as its Chair), among other things, we and Mr. Musk paid civil penalties of $20 million each and agreed that an independent director will serve as Chair of the Board for at least three years, and we appointed such an Certain Investigations and Other Matters We receive requests for information from regulators and governmental authorities, such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC, the Department of Justice (“DOJ”) and various state, federal and international agencies. We routinely cooperate with such regulatory and governmental requests. In particular, the SEC had issued subpoenas to Tesla in connection with (a) Elon Musk’s prior statement that he was considering taking Tesla private and (b) certain projections that we made for Model 3 production rates during 2017 and other public statements relating to Model 3 production. The take-private investigation was resolved and closed with the settlement with the SEC described above. On December 4, 2019, the SEC (i) closed the investigation into the projections and other public statements regarding Model 3 production rates and (ii) issued a subpoena seeking information concerning certain financial data and contracts including Tesla’s regular financing arrangements Aside from the settlement, as amended, with the SEC relating to Mr. Musk’s statement that he was considering taking Tesla private, there have not been any developments in these matters that we deem to be material, and to our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred. As is our normal practice, we have been cooperating and will continue to cooperate with government authorities. We cannot predict the outcome or impact of any ongoing matters. Should the government decide to pursue an enforcement action, there exists the possibility of a material adverse impact on our business, results of operation, prospects, cash flows, and financial position. We are also subject to various other legal proceedings and claims that arise from the normal course of business activities. If an unfavorable ruling or development were to occur, there exists the possibility of a material adverse impact on our business, results of operations, prospects, cash flows, financial position and brand. Indemnification and Guaranteed Returns We are contractually obligated to compensate certain fund investors for any losses that they may suffer in certain limited circumstances resulting from reductions in U.S. Treasury grants or investment tax credits (“ITC”s). Generally, such obligations would arise as a result of reductions to the value of the underlying solar energy systems as assessed by the U.S. Treasury Department for purposes of claiming U.S. Treasury grants or as assessed by the IRS for purposes of claiming ITCs or U.S. Treasury grants. For each balance sheet date, we assess and recognize, when applicable, a distribution payable for the potential exposure from this obligation based on all the information available at that time, including any guidelines issued by the U.S. Treasury Department on solar energy system valuations for purposes of claiming U.S. Treasury grants and any audits undertaken by the IRS. We believe that any payments to the fund investors in excess of the amounts already recognized by us for this obligation are not probable or material based on the facts known at the filing date. The maximum potential future payments that we could have to make under this obligation would depend on the difference between the fair values of the solar energy systems sold or transferred to the funds as determined by us and the values that the U.S. Treasury Department would determine as fair value for the systems for purposes of claiming U.S. Treasury grants or the values the IRS would determine as the fair value for the systems for purposes of claiming ITCs or U.S. Treasury grants. We claim U.S. Treasury grants based on guidelines provided by the U.S. Treasury department and the statutory regulations from the IRS. We use fair values determined with the assistance of independent third-party appraisals commissioned by us as the basis for determining the ITCs that are passed-through to and claimed by the fund investors. Since we cannot determine future revisions to U.S. Treasury Department guidelines governing solar energy system values or how the IRS will evaluate system values used in claiming ITCs or U.S. Treasury grants, we are unable to reliably estimate the maximum potential future payments that it could have to make under this obligation as of each balance sheet date. We are eligible to receive certain state and local incentives that are associated with renewable energy generation. The amount of incentives that can be claimed is based on the projected or actual solar energy system size and/or the amount of solar energy produced. We also currently participate in one state’s incentive program that is based on either the fair market value or the tax basis of solar energy systems placed in service. State and local incentives received are allocated between us and fund investors in accordance with the contractual provisions of each fund. We are not contractually obligated to indemnify any fund investor for any losses they may incur due to a shortfall in the amount of state or local incentives actually received. Our lease pass-through financing funds have a one-time lease payment reset mechanism that occurs after the installation of all solar energy systems in a fund. As a result of this mechanism, we may be required to refund master lease prepayments previously received from investors. Any refunds of master lease prepayments would reduce the lease pass-through financing obligation. Letters of Credit As of December 31, 2019, we had $282 million of unused letters of credit outstanding |
Variable Interest Entity Arrang
Variable Interest Entity Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entity Disclosure [Abstract] | |
Variable Interest Entity Arrangements | Note 17 – Variable Interest Entity Arrangements We have entered into various arrangements with investors to facilitate the funding and monetization of our solar energy systems and vehicles. In particular, our wholly owned subsidiaries and fund investors have formed and contributed cash and assets into various financing funds and entered into related agreements. Consolidation As the primary beneficiary of these VIEs, we consolidate in the financial statements the financial position, results of operations and cash flows of these VIEs, and all intercompany balances and transactions between us and these VIEs are eliminated in the consolidated financial statements. Cash distributions of income and other receipts by a fund, net of agreed upon expenses, estimated expenses, tax benefits and detriments of income and loss and tax credits, are allocated to the fund investor and our subsidiary as specified in the agreements. Generally, our subsidiary has the option to acquire the fund investor’s interest in the fund for an amount based on the market value of the fund or the formula specified in the agreements. Upon the sale or liquidation of a fund, distributions would occur in the order and priority specified in the agreements. Pursuant to management services, maintenance and warranty arrangements, we have been contracted to provide services to the funds, such as operations and maintenance support, accounting, lease servicing and performance reporting. In some instances, we have guaranteed payments to the fund investors as specified in the agreements. A fund’s creditors have no recourse to our general credit or to that of other funds. None of the assets of the funds had been pledged as collateral for their obligations. The aggregate carrying values of the VIEs’ assets and liabilities, after elimination of any intercompany transactions and balances, in the consolidated balance sheets were as follows (in millions): December 31, December 31, 2019 2018 Assets Current assets Cash and cash equivalents $ 106 $ 75 Restricted cash 90 131 Accounts receivable, net 27 19 Prepaid expenses and other current assets 10 10 Total current assets 233 235 Operating lease vehicles, net 1,183 155 Solar energy systems, net 5,030 5,117 Restricted cash, net of current portion 69 65 Other assets 87 56 Total assets $ 6,602 $ 5,628 Liabilities Current liabilities Accrued liabilities and other 80 133 Deferred revenue 78 21 Customer deposits 9 — Current portion of long-term debt and finance leases 608 663 Total current liabilities 775 817 Deferred revenue, net of current portion 264 178 Long-term debt and finance leases, net of current portion 1,516 1,238 Other long-term liabilities 22 26 Total liabilities $ 2,577 $ 2,259 |
Lease Pass-Through Financing Ob
Lease Pass-Through Financing Obligation | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Pass-Through Financing Obligation | Note 18 – Lease Pass-Through Financing Obligation Through December 31, 2019, we had entered into eight transactions referred to as “lease pass-through fund arrangements”. Under these arrangements, our wholly owned subsidiaries finance the cost of solar energy systems with investors through arrangements contractually structured as master leases for an initial term ranging between 10 and 25 years The cost of the solar energy systems under lease pass-through fund arrangements as of December 31, 2019 and 2018 was $1.05 Under a lease pass-through fund arrangement, the investor makes a large upfront payment to the lessor, which is one of our subsidiaries, and in some cases, subsequent periodic payments. We allocate a portion of the aggregate investor payments to the fair value of the assigned ITCs, which is estimated by discounting the projected cash flow impact of the ITCs using a market interest rate and is accounted for separately (see Note 2, Summary of Significant Accounting Policies The lease pass-through financing obligation is non-recourse once the associated solar energy systems have been placed in-service and the associated customer arrangements have been assigned to the investors. However, we are required to comply with certain financial covenants specified in the contractual agreements, which we had met as of December 31, 2019. In addition, we are responsible for any warranties, performance guarantees, accounting and performance reporting. Furthermore, we continue to account for the customer arrangements and any incentive rebates in the consolidated financial statements, regardless of whether the cash is received by us or directly by the investors. As of December 31, 2019, the future minimum master lease payments to be received from investors, for each of the next five years and thereafter, were as follows (in millions): 2020 $ 42 2021 41 2022 33 2023 26 2024 18 Thereafter 450 Total $ 610 For two of the lease pass-through fund arrangements, our subsidiaries have pledged its assets to the investors as security for its obligations under the contractual agreements. Each lease pass-through fund arrangement has a one-time master lease prepayment adjustment mechanism that occurs when the capacity and the placed-in-service dates of the associated solar energy systems are finalized or on an agreed-upon date. As part of this mechanism, the master lease prepayment amount is updated, and we may be obligated to refund a portion of a master lease prepayment or entitled to receive an additional master lease prepayment. Any additional master lease prepayments are recorded as an additional lease pass-through financing obligation while any master lease prepayment refunds would reduce the lease pass-through financing obligation. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plan | Note 19 – Defined Contribution Plan We have a 401(k) savings plan that is intended to qualify as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) savings plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. Participants are fully vested in their contributions. We did not make any contributions to the 401(k) savings plan during the years ended December 31, 2019, 2018 and 2017 (other than employee deferrals of eligible compensation). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20 – Related Party Transactions Related party balances were comprised of the following (in millions): December 31, December 31, 2019 2018 Convertible senior notes due to related parties $ 3 $ 3 Our convertible senior notes are not re-measured at fair value (refer to Note 5, Fair Value of Financial Instruments In March 2017, our CEO purchased from us 95,420 shares of our common stock in a public offering at the public offering price for an aggregate $25 million. In April 2017, our CEO exercised his right under the indenture to convert all of his Zero-Coupon Convertible Senior Notes due in 2020, which had an aggregate principal amount of $10 million. As a result, on April 26, 2017, we issued 33,333 shares we recorded an increase to additional paid-in capital of $10 million. In November 2018, our CEO purchased from us 56,915 shares of our common stock in a private placement at a per share price equal to the last closing price of our stock prior to the execution of the purchase agreement for an aggregate $20 million. In May 2019, our CEO purchased from us 102,880 shares of our common stock in a public offering at the public offering price for an aggregate $25 million. |
Segment Reporting and Informati
Segment Reporting and Information about Geographic Areas | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting and Information about Geographic Areas | Note 21 – Segment Reporting and Information about Geographic Areas We have two operating and reportable segments: (i) automotive and (ii) energy generation and storage. The automotive segment includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits. Additionally, the automotive segment is also comprised of services and other, which includes non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by our acquired subsidiaries to third party customers, and vehicle insurance revenue. The energy generation and storage segment includes the design, manufacture, installation, sales, and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Our CODM does not evaluate operating segments using asset or liability information. The following table presents revenues and gross profit by reportable segment (in millions): Year Ended December 31, 2019 2018 2017 Automotive segment Revenues $ 23,047 $ 19,906 $ 10,643 Gross profit $ 3,879 $ 3,852 $ 1,981 Energy generation and storage segment Revenues $ 1,531 $ 1,555 $ 1,116 Gross profit $ 190 $ 190 $ 242 The following table presents revenues by geographic area based on the sales location of our products (in millions): Year Ended December 31, 2019 2018 2017 United States $ 12,653 $ 14,872 $ 6,221 China 2,979 1,757 2,027 Netherlands 1,590 965 331 Norway 1,201 813 823 Other 6,155 3,054 2,357 Total $ 24,578 $ 21,461 $ 11,759 The revenues in certain geographic areas were impacted by the price adjustments we made to our vehicle offerings during 2019 . Refer to Note 2, Summary of Significant Accounting Policies The following table presents long-lived assets by geographic area (in millions): December 31, December 31, 2019 2018 United States $ 15,644 $ 16,741 International 890 860 Total $ 16,534 $ 17,601 |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other | Note 22 – Restructuring and Other During the year ended December 31, 2019, we carried out certain restructuring actions in order to reduce costs and improve efficiency. As a result, we recognized $50 million of costs primarily related to employee termination expenses and losses from closing certain stores impacting both segments. We recognized $47 million in impairment related to the IPR&D intangible asset as we abandoned further development efforts (refer to Note 4, Goodwill and Intangible Assets During the year ended December 31, 2018, we carried-out certain restructuring actions in order to reduce costs and improve efficiency and recognized $37 million of employee termination expenses and estimated losses from sub-leasing a certain facility. The employee termination cash expenses of $27 million were substantially paid by the end of 2018, while the remaining amounts were non-cash. Also included within restructuring and other activities was $55 million of expenses (materially all of which were non-cash) from restructuring the energy generation and storage segment, which comprised of disposals of certain tangible assets, the shortening of the useful life of a trade name intangible asset and a contract termination penalty. In addition, we concluded that a small portion of the IPR&D asset is not commercially feasible. Consequently, we recognized an impairment loss of $13 million. We recognized settlement and legal expenses of $30 million in the year ended December 31, 2018 for the settlement with the SEC relating to a take-private proposal for Tesla. These expenses were substantially paid by the end of 2018 . |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | Note 23 – Quarterly Results of Operations (Unaudited) The following table presents selected quarterly results of operations data for the years ended December 31, 2019 and 2018 (in millions, except per share amounts): Three Months Ended March 31 June 30 September 30 December 31 2019 Total revenues $ 4,541 $ 6,350 $ 6,303 $ 7,384 Gross profit $ 566 $ 921 $ 1,191 $ 1,391 Net (loss) income attributable to common stockholders $ (702 ) $ (408 ) $ 143 $ 105 Net (loss) income per share of common stock attributable to common stockholders, basic $ (4.10 ) $ (2.31 ) $ 0.80 $ 0.58 Net (loss) income per share of common stock attributable to common stockholders, diluted $ (4.10 ) $ (2.31 ) $ 0.78 $ 0.56 2018 Total revenues $ 3,409 $ 4,002 $ 6,824 $ 7,226 Gross profit $ 456 $ 619 $ 1,524 $ 1,443 Net (loss) income attributable to common stockholders $ (709 ) $ (718 ) $ 311 $ 140 Net (loss) income per share of common stock attributable to common stockholders, basic $ (4.19 ) $ (4.22 ) $ 1.82 $ 0.81 Net (loss) income per share of common stock attributable to common stockholders, diluted $ (4.19 ) $ (4.22 ) $ 1.75 $ 0.78 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and reflect our accounts and operations and those of our subsidiaries in which we have a controlling financial interest. In accordance with the provisions of Accounting Standards Codification (“ASC”) 810, Consolidation 17 Variable Interest Entity Arrangements |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures in the accompanying notes. Estimates are used for, but not limited to, determining the transaction price of products and services in arrangements with multiple performance obligations and determining the amortization period of these obligations, significant economic incentive for residual value guarantee arrangements, sales return reserves, the collectability of accounts receivable, inventory valuation, fair value of long-lived assets, goodwill, fair value of financial instruments, residual value of operating lease vehicles, depreciable lives of property and equipment and solar energy systems, fair value and residual value of solar energy systems subject to leases, warranty liabilities, income taxes, contingencies, determining lease pass-through financing obligations, the valuation of build-to-suit lease assets, fair value of interest rate swaps and inputs used to value stock-based compensation. In addition, estimates and assumptions are used for the accounting for business combinations, including the fair values and useful lives of acquired assets, assumed liabilities and noncontrolling interests. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Adoption of new accounting standards ASU 2014-09, Revenue - Revenue from Contracts with Custome A majority of our automotive sales revenue is recognized when control transfers upon delivery to customers. For certain vehicle sales where revenue was previously deferred as an in-substance operating lease, such as certain vehicle sales to customers or leasing partners with a resale value guarantee, we recognize revenue when the vehicles are delivered as a sale with a right of return. As a result, the corresponding operating lease asset, deferred revenue, and resale value guarantee balances as of December 31, 2017, were reclassified to accumulated deficit as part of our adoption entry. Furthermore, the warranty liability related to such vehicles has been accrued as a result of the change from in-substance operating leases to vehicle sales. Prepayments on contracts that can be cancelled without significant penalties, such as vehicle maintenance plans, have been reclassified from deferred revenue to customer deposits. Refer to the Automotive Sales Revenue Automotive Leasing Revenue Automotive Segment Automotive Sales Revenue Automotive Sales without Resale Value Guarantee Automotive sales revenue includes revenues related to deliveries of new vehicles and pay-per-use charges, and specific other features and services that meet the definition of a performance obligation under the new revenue standard, including access to our Supercharger network, internet connectivity, Autopilot, Full Self-Driving (“FSD”) features and over-the-air software updates. We recognize revenue on automotive sales upon delivery to the customer, which is when the control of a vehicle transfers. Payments are typically received at the point control transfers or in accordance with payment terms customary to the business. Other features and services such as access to our Supercharger network, internet connectivity and over-the-air software updates are provisioned upon control transfer of a vehicle and recognized over time on a straight-line basis as we have a stand-ready obligation to deliver such services to the customer. We recognize revenue related to these other features and services over the performance period, which is generally the expected ownership life of the vehicle or the eight-year life of the vehicle. Revenue related to Autopilot and FSD features is recognized when functionality is delivered to the customer. For our obligations related to automotive sales, we estimate standalone selling price by considering costs used to develop and deliver the service, third-party pricing of similar options and other information that may be available. At the time of revenue recognition, we reduce the transaction price and record a sales return reserve against revenue for estimated variable consideration related to future product returns. Such estimates are based on historical experience and are immaterial in all periods presented. In addition, any fees that are paid or payable by us to a customer’s lender when we arrange the financing are recognized as an offset against automotive sales revenue. Costs to obtain a contract mainly relate to commissions paid to our sales personnel for the sale of vehicles. Commissions are not paid on other obligations such as access to our Supercharger network, internet connectivity, Autopilot, FSD features and over-the-air software updates. Automotive Sales with Resale Value Guarantee or a Buyback Option We offer resale value guarantees or similar buy-back terms to certain international customers who purchase vehicles and who finance their vehicles through one of our specified commercial banking partners. We also offer resale value guarantees in connection with automotive sales to certain leasing partners. Under these programs, we receive full payment for the vehicle sales price at the time of delivery and our counterparty has the option of selling their vehicle back to us during the guarantee period, which currently is generally at the end of the term of the applicable loan or financing program, for a pre-determined resale value. With the exception of two programs which are discussed within the Automotive Leasing in accordance with the new revenue standard On a quarterly basis, we assess the estimated market values of vehicles under our buyback options program to determine whether there have been changes to the likelihood of future product returns. As we accumulate more data related to the buyback values of our vehicles or as market conditions change, there may be material changes to their estimated values. Due to price adjustments we made to our vehicle offerings during 2019, we estimated that there is a greater likelihood that customers will exercise their buyback options that were provided prior to such adjustments. As a result, along with the estimated variable consideration related to normal future product returns for vehicles sold under the buyback options program, we adjusted our sales return reserve on vehicles previously sold under our buyback options program resulting in a reduction of automotive sales revenues of $ million for the year ended December 31, 2019. If customers elect to exercise the buyback option, we expect to be able to subsequently resell the returned vehicles, which resulted in a corresponding reduction in cost of automotive sales of $451 million for the year ended December 31, 2019. The net impact was $ million reduction in gross profit for the year ended December 31, 2019. The total sales return reserve on vehicles previously sold under our buyback options program was $639 million as of December 31, 2019, of which $93 million was short term. Vehicle Sales to Leasing Partners with a Resale Value Guarantee and a Buyback Option Vehicle Sales to Customers with a Resale Value Guarantee where Exercise is Probable. Prior to the adoption of the new revenue standard, all transactions with resale value guarantees were recorded as operating leases. The amount of sale proceeds equal to the resale value guarantee was deferred until the guarantee expired or was exercised. For certain transactions that were considered interest bearing collateralized borrowings as required under ASC 840, Leases prior to January 1, 2019, we also accrued interest expense based on our borrowing rate. In cases where our counterparty retained ownership of the vehicle at the end of the guarantee period, the resale value guarantee liability and any remaining deferred revenue balances related to the vehicle were settled to automotive leasing revenue, and the net book value of the leased vehicle was expensed to cost of automotive leasing revenue. If our counterparty returned the vehicle to us during the guarantee period, we purchased the vehicle from our counterparty in an amount equal to the resale value guarantee and settled any remaining deferred balances to automotive leasing revenue, and we reclassified the net book value of the vehicle on the consolidated balance sheet to used vehicle inventory. Deferred revenue activity related to the access to our Supercharger network, internet connectivity, Autopilot, FSD features and over-the-air software updates on automotive sales with and without resale value guarantee consisted of the following (in millions): Year ended December 31, 2019 2018 Deferred revenue on automotive sales with and without resale value guarantee— beginning of period $ 883 $ 476 Additions 880 532 Net changes in liability for pre-existing contracts 9 (13 ) Revenue recognized (300 ) (112 ) Deferred revenue on automotive sales with and without resale value guarantee— end of period $ 1,472 $ 883 Deferred revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, as of December 31, 2019. From the deferred revenue balance as of December 31, 2018, revenue recognized during the year ended December 31, 2019 was $220 million. From the deferred revenue balance as of January 1, 2018, revenue recognized during the year ended December 31, 2018 was $81 million. Automotive Sales without Resale Value Guarantee Automotive Regulatory Credits In connection with the production and delivery of our zero emission vehicles in global markets, we have earned and will continue to earn various tradable automotive regulatory credits. We have sold these credits, and will continue to sell future credits, to automotive companies and other regulated entities who can use the credits to comply with emission standards and other regulatory requirements. For example, under California’s Zero Emission Vehicle Regulation and those of states that have adopted California’s standard, vehicle manufacturers are required to earn or purchase credits, referred to as ZEV credits, for compliance with their annual regulatory requirements. These laws provide that automakers may bank or sell to other regulated parties their excess credits if they earn more credits than the minimum quantity required by those laws. We also earn other types of saleable regulatory credits in the United States and abroad, including greenhouse gas, fuel economy and clean fuels credits. Payments for regulatory credits are typically received at the point control transfers to the customer, or in accordance with payment terms customary to the business. We recognize revenue on the sale of automotive regulatory credits at the time control of the regulatory credits is transferred to the purchasing party as automotive revenue in the consolidated statements of operations. Revenue from the sale of automotive regulatory credits totaled $594 million, $419 million and $360 million for the years ended December 31, 2019, 2018 and 2017, respectively. Deferred revenue related to sales of automotive regulatory credits was $140 million and $0 as of and 2018, respectively. We expect to recognize the deferred revenue as of December 31, 2019 in the next 12 months. Automotive Leasing Revenue Automotive leasing revenue includes revenue recognized under lease accounting guidance for our direct leasing programs as well as the two programs with resale value guarantees which continue to qualify for operating lease treatment. Prior to the adoption of the new revenue standard, all programs with resale value guarantees were accounted for as operating leases Direct Vehicle Leasing Program We have outstanding leases under our direct vehicle leasing programs in the U.S., Canada and in certain countries in Europe. As of December 31, 2019, the direct vehicle leasing program is offered for all new Model S, Model X and Model 3 vehicles in the U.S. and for new Model S and Model X vehicles in Canada. Qualifying customers are permitted to lease a vehicle directly from Tesla for up to 48 months. At the end of the lease term, customers are required to return the vehicles to us or for Model S and Model X leases, may opt to purchase the vehicles for a pre-determined residual value. We account for these leasing transactions as operating leases. We record leasing revenues to on a straight-line basis over the contractual term, and we record the depreciation of these vehicles to cost of automotive leasing revenue. For the years ended December 31, 2019, 2018 and 2017 , we recognized $532 million, $393 million and $221 million of direct vehicle leasing revenue, respectively . As of December 31, 2019 and 2018, we had deferred $218 million and $110 million, respectively, of lease-related upfront payments, which will be recognized on a straight-line basis over the contractual terms of the individual leases. We capitalize shipping costs and initial direct costs such as the incremental cost of referral fees and sales commissions from the origination of automotive lease agreements as an element of operating lease vehicles, net, and subsequently amortize these costs over the term of the related lease agreement. Our policy is to exclude taxes collected from a customer from the transaction price of automotive contracts. Total capitalized costs were immaterial as of December 31, 2019 and 2018. Vehicle Sales to Leasing Partners with a Resale Value Guarantee and a Buyback Option We offer buyback options in connection with automotive sales with resale value guarantees with certain leasing partner sales in the United States. These transactions entail a transfer of leases, which we have originated with an end-customer, to our leasing partner. As control of the vehicles has not been transferred in accordance with the new revenue standard Leases At the end of the lease term, we settle our liability in cash by either purchasing the vehicle from the leasing partner for the buyback option amount or paying a shortfall to the option amount the leasing partner may realize on the sale of the vehicle. Any remaining balances within deferred revenue and resale value guarantee will be settled to automotive leasing revenue. The end customers can extend the lease for a period of up to 6 months. . The maximum amount we could be required to pay under this program, should we decide to repurchase all vehicles, was $214 million and $480 million as of December 31, 2019 and 2018, respectively, including $178 million within a 12-month period from December 31, 2019. As of December 31, 2019 and 2018 we had $238 and $558 million, respectively, of such borrowings recorded in resale value guarantees and $29 million and $93 million, respectively, recorded in deferred revenue liability. Vehicle S ales to Customers with a Resale Value Guarantee where Exercise is Probable For certain international programs where we have offered resale value guarantees to certain customers who purchased vehicles and where we expect the customer has a significant economic incentive to exercise the resale value guarantee provided to them, we continue to recognize these transactions as operating leases. The process to determine whether there is a significant economic incentive includes a comparison of a vehicle’s estimated market value at the time the option is exercisable with the guaranteed resale value to determine the customer’s economic incentive to exercise. We have not sold any vehicles under this program since the first half of 2017 and all current period activity relates to the exercise or cancellation of active transactions. The amount of sale proceeds equal to the resale value guarantee is deferred until the guarantee expires or is exercised. The remaining sale proceeds are deferred and recognized on a straight-line basis over the stated guarantee period to automotive leasing revenue. The guarantee period expires at the earlier of the end of the guarantee period or the pay-off of the initial loan. We capitalize the cost of these vehicles on the consolidated balance sheet as operating lease vehicles, net, and depreciate their value, less salvage value, to cost of automotive leasing revenue over the same period. In cases where a customer retains ownership of a vehicle at the end of the guarantee period, the resale value guarantee liability and any remaining deferred revenue balances related to the vehicle are settled to automotive leasing revenue, and the net book value of the leased vehicle is expensed to cost of automotive leasing revenue. If a customer returns the vehicle to us during the guarantee period, we purchase the vehicle from the customer in an amount equal to the resale value guarantee and settle any remaining deferred balances to automotive leasing revenue, and we reclassify the net book value of the vehicle on the consolidated balance sheets to used vehicle inventory. As of December 31, 2019 and 2018, $115 million and $150 million, respectively, of the guarantees were exercisable by customers within the next 12 months. For the year ended December 31, 2019 and 2018, we recognized $150 million and $158 million, respectively, of leasing revenue related to this program. The net carrying amount of operating lease vehicles under this program was $83 million and $212 million, respectively, as of December 31, 2019 and 2018. Services and Other Revenue Services and other revenue consists of non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by our acquired subsidiaries to third party customers, and vehicle insurance revenue. There were no significant changes to the timing or amount of revenue recognition as a result of our adoption of the new revenue standard. Revenues related to repair and maintenance services are recognized over time as services are provided and extended service plans are recognized over the performance period of the service contract as the obligation represents a stand-ready obligation to the customer. We sell used vehicles, services, service plans, vehicle components and merchandise separately and thus use standalone selling prices as the basis for revenue allocation to the extent that these items are sold in transactions with other performance obligations. Payment for used vehicles, services, and merchandise are typically received at the point when control transfers to the customer or in accordance with payment terms customary to the business. Payments received for prepaid plans are refundable upon customer cancellation of the related contracts and are included within customer deposits on the consolidated balance sheet. Deferred revenue related to services and other revenue was immaterial as of December 31, 2019 and 2018. Energy Generation and Storage Segment Energy Generation and Storage Sales Energy generation and storage sales revenue consists of the sale of solar energy systems and energy storage systems to residential, small commercial, and large commercial and utility grade customers. Upon adoption of the new lease standard (refer to Leases Sales of energy storage systems to residential and small scale commercial customers consist of the installation of the energy storage system and revenue is recognized when control transfers, which is when the product has been delivered or, if we are performing installation, when installed and commissioned. Payment for such storage systems is made upon invoice or in accordance with payment terms customary to the business. For large commercial and utility grade solar energy system and energy storage system sales which consist of the engineering, design, and installation of the system, customers make milestone payments that are consistent with contract-specific phases of a project. Revenue from such contracts is recognized over time using the percentage of completion method based on cost incurred as a percentage of total estimated contract costs for energy storage system sales and as a percentage of total estimated labor hours for solar energy system sales revenue is recognized when control transfers, which is when the product has been delivered to the customer and commissioned for energy storage systems and when the project has received permission to operate from the utility for solar energy systems. for solar energy system sales and upon delivery of the service for energy storage system sales In instances where there are multiple performance obligations in a single contract, we allocate the consideration to the various obligations in the contract based on the relative standalone selling price method. Standalone selling prices are estimated based on estimated costs plus margin or using market data for comparable products. Costs incurred on the sale of residential installations before the solar energy systems are completed are included as work in process within inventory in the consolidated balance sheets. However, any fees that are paid or payable by us to a solar loan lender would be recognized as an offset against revenue. Costs to obtain a contract relate mainly to commissions paid to our sales personnel related to the sale of solar energy systems and energy storage systems. As our contract costs related to solar energy system and energy storage system sales are typically fulfilled within one year, the costs to obtain a contract are expensed as incurred. As part of our solar energy system and energy storage system contracts, we may provide the customer with performance guarantees that warrant that the underlying system will meet or exceed the minimum energy generation or retention requirements specified in the contract. In certain instances, we may receive a bonus payment if the system performs above a specified level. Conversely, if a solar energy system or energy storage system does not meet the performance guarantee requirements, we may be required to pay liquidated damages. Other forms of variable consideration related to our large commercial and utility grade solar energy system and energy storage system contracts include variable customer payments that will be made based on our energy market participation activities. Such guarantees and variable customer payments represent a form of variable consideration and are estimated at contract inception at their most likely amount and updated at the end of each reporting period as additional performance data becomes available. Such estimates are included in the transaction price only to the extent that it is probable a significant reversal of revenue will not occur. We record as deferred revenue any non-refundable amounts that are collected from customers related to fees charged for prepayments and remote monitoring service and operations and maintenance service, which is recognized as revenue ratably over the respective customer contract term. As of December 31, 2019 and 2018, deferred revenue related to such customer payments amounted to $156 million and $149 million, respectively. Revenue recognized from the deferred revenue balance as of December 31, 2018 was $41 million for the year ended December 31, 2019. Revenue recognized from the deferred revenue balance as of January 1, 2018 was $41 million for the year ended December 31, 2018. Energy Generation and Storage Leasing For revenue arrangements where we are the lessor under operating lease agreements for energy generation and storage products For solar energy systems where customers purchase electricity from us under PPAs prior to January 1, 2019, we have determined that these agreements should be accounted for as operating leases pursuant to ASC 840. Revenue is recognized based on the amount of electricity delivered at rates specified under the contracts, assuming all other revenue recognition criteria are met. We record as deferred revenue any amounts that are collected from customers, including lease prepayments, in excess of revenue recognized and operations and maintenance service, which is recognized as revenue ratably over the respective customer contract term. As of December 31, 2019 and 2018, deferred revenue related to such customer payments amounted to $226 million and $225 million, respectively. Deferred revenue also includes the portion of rebates and incentives received from utility companies and various local and state government agencies, which is recognized as revenue over the lease term. As of December 31, 2019 and December 31, 2018, deferred revenue from rebates and incentives amounted to $36 million and $37 million, respectively. We capitalize initial direct costs from the execution of agreements for solar energy systems and PPAs, which include the referral fees and sales commissions, as an element of solar energy systems, net, and subsequently amortize these costs over the term of the related agreements. Revenue by source The following table disaggregates our revenue by major source (in millions): Year Ended December 31, 2019 2018 Automotive sales without resale value guarantee $ 19,212 $ 15,810 Automotive sales with resale value guarantee (1) 146 1,403 Automotive regulatory credits 594 419 Energy generation and storage sales (2) 1,000 1,056 Services and other 2,226 1,391 Total revenues from sales and services 23,178 20,079 Automotive leasing 869 883 Energy generation and storage leasing (2) 531 499 Total revenues $ 24,578 $ 21,461 (1) We made pricing adjustments to our vehicle offerings in 2019, which resulted in a reduction of automotive sales with resale value guarantee revenues. Refer to Automotive Sales with Resale Value Guarantee (2) Under ASC 842, Leases Leases |
Cost of Revenues | Cost of Revenues Automotive Segment Automotive Sales Cost of automotive sales revenue includes direct parts, material and labor costs, manufacturing overhead, including depreciation costs of tooling and machinery, shipping and logistic costs, vehicle connectivity costs, allocations of electricity and infrastructure costs related to our Supercharger network, and reserves for estimated warranty expenses. Cost of automotive sales revenues also includes adjustments to warranty expense and charges to write down the carrying value of our inventory when it exceeds its estimated net realizable value and to provide for obsolete and on-hand inventory in excess of forecasted demand . Automotive Leasing Cost of automotive leasing revenue includes primarily the amortization of operating lease vehicles over the lease term, as well as warranty expenses recognized as incurred. Cost of automotive leasing revenue also includes vehicle connectivity costs and allocations of electricity and infrastructure costs related to our Supercharger network for vehicles under our leasing programs . Services and Other Costs of services and other revenue includes costs associated with providing non-warranty after-sales services . Energy Generation and Storage Segment Energy Generation and Storage Energy generation and storage cost of revenue includes direct and indirect material and labor costs, warehouse rent, freight, warranty expense, other overhead costs and amortization of certain acquired intangible assets. In addition, where arrangements are accounted for as operating leases, the cost of revenue is primarily comprised of depreciation of the cost of leased solar energy systems, maintenance costs associated with those systems and amortization of any initial direct costs. |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to lease accounting under ASC 840. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. We adopted ASC 842 as of January 1, 2019 using the cumulative effect adjustment approach (“adoption of the new lease standard”). In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. Agreements for solar energy system leases and PPAs (solar leases) that commence after January 1, 2019, where we are the lessor and were previously accounted for as operating leases no longer meet the definition of a lease upon the adoption of ASC 842 and are instead accounted for in accordance with the revenue standard. Under these two types of arrangements, the customer is not responsible for the design of the energy system but rather approved the energy system benefits in terms of energy capacity and production to be received over the term. Accordingly, the revenue from solar leases commencing after January 1, 2019 are now recognized as earned, based on the amount of capacity provided or electricity delivered at the contractual billing rates, assuming all other revenue recognition criteria have been met. Under the practical expedient available under ASC 606-10-55-18, we recognize revenue based on the value of the service which is consistent with the billing amount. We have lease agreements with lease and non-lease components, and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease. Additionally, leases previously identified as build-to-suit leasing arrangements under legacy lease accounting (ASC 840), were derecognized pursuant to the transition guidance provided for build-to-suit leases in ASC 842. Accordingly, these leases have been reassessed as operating leases as of the adoption date under ASC 842, and are included on the consolidated balance sheet as of December 31, 2019. Operating lease assets are included within operating lease right-of-use assets, and the corresponding operating lease liabilities are included within accrued liabilities and other ong-term debt and finance leases, net of current portion We have elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2019 had a material impact on our consolidated financial statements. The most significant impacts related to the (i) recognition of right-of-use ("ROU") assets of $1.29 billion and lease liabilities of $1.24 billion for operating leases on the consolidated balance sheet, and (ii) de-recognition of build-to-suit lease assets and liabilities of $1.62 billion and $1.74 billion, respectively, with the net impact of $97 million recorded to accumulated deficit, as of January 1, 2019. We also reclassified prepaid expenses and other current asset balances of $142 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $70 million relating to our existing lease arrangements as of December 31, 2018, into the ROU asset balance as of January 1, 2019. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The standard did not materially impact our consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2019 for the adoption of the new lease standard was as Balances at December 31, 2018 Adjustments from Adoption of New Lease Standard Balances at January 1, 2019 Assets Prepaid expenses and other current assets $ 366 $ — $ 366 Property, plant and equipment, net 11,330 (1,617 ) 9,713 Operating lease right-of-use assets — 1,286 1,286 Other assets 572 (141 ) 431 Liabilities Accrued liabilities and other 2,094 118 2,212 Current portion of long-term debt and finance leases 2,568 — 2,568 Long-term debt and finance leases, net of current portion 9,404 — 9,404 Other long-term liabilities 2,710 (687 ) 2,023 Equity Accumulated deficit (5,318 ) 97 (5,221 ) |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. |
Marketing, Promotional and Advertising Costs | Marketing, Promotional and Advertising Costs Marketing, promotional and advertising costs are expensed as incurred and are included as an element of selling, general and administrative expense in the consolidated statement of operations. We incurred marketing, promotional and advertising costs of $27 million, $32 million and $37 million in the years ended December 31, 2019, 2018 and 2017, respectively, of which the majority is related to promotional activities. |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method, under which deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We record liabilities related to uncertain tax positions when, despite our belief that our tax return positions are supportable, we believe that it is more likely than not that those positions may not be fully sustained upon review by tax authorities. Accrued interest and penalties related to unrecognized tax benefits are classified as income tax expense. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income |
Stock-Based Compensation | Stock-Based Compensation We recognize compensation expense for costs related to all share-based payments, including stock options, restricted stock units (“RSUs”) and our employee stock purchase plan (the “ESPP”). The fair value of stock option awards with only service and/or performance conditions and the ESPP is estimated on the grant or offering date using the Black-Scholes option-pricing model. The fair value of RSUs is measured on the grant date based on the closing fair market value of our common stock. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, net of actual forfeitures in the period. For performance-based awards, stock-based compensation expense is recognized over the expected performance achievement period of individual performance milestones when the achievement of each individual performance milestone becomes probable. For performance-based awards with a vesting schedule based entirely on the attainment of both performance and market conditions, stock-based compensation expense associated with each tranche is recognized over the longer of (i) the expected achievement period for the operational milestone for such tranche and (ii) the expected achievement period for the related market capitalization milestone determined on the grant date, beginning at the point in time when the relevant operational milestone is considered probable of being met. If such operational milestone becomes probable any time after the grant date, we will recognize a cumulative catch-up expense from the grant date to that point in time. If the related market capitalization milestone is achieved earlier than its expected achievement period and the achievement of the related operational milestone, then the stock-based compensation expense will be recognized over the expected achievement period for the operational milestone, which may accelerate the rate at which such expense is recognized. The fair value of such awards is estimated on the grant date using Monte Carlo simulations (see Note 14, Equity Incentive Plans As we accumulate additional employee stock-based awards data over time and as we incorporate market data related to our common stock, we may calculate significantly different volatilities and expected lives, which could materially impact the valuation of our stock-based awards and the stock-based compensation expense that we will recognize in future periods. Stock-based compensation expense is recorded in cost of revenues, research and development expense and selling, general and administrative expense in the consolidated statements of operations. |
Noncontrolling Interests and Redeemable Noncontrolling Interests | Noncontrolling Interests and Redeemable Noncontrolling Interests Noncontrolling interests and redeemable noncontrolling interests represent third-party interests in the net assets under certain funding arrangements, or funds, that we enter into to finance the costs of solar energy systems and vehicles under operating leases. We have determined that the contractual provisions of the funds represent substantive profit sharing arrangements. We have further determined that the appropriate methodology for calculating the noncontrolling interest and redeemable noncontrolling interest balances that reflects the substantive profit sharing arrangements is a balance sheet approach using the hypothetical liquidation at book value (“HLBV”) method. We, therefore, determine the amount of the noncontrolling interests and redeemable noncontrolling interests in the net assets of the funds at each balance sheet date using the HLBV method, which is presented on the consolidated balance sheet as noncontrolling interests in subsidiaries and redeemable noncontrolling interests in subsidiaries. Under the HLBV method, the amounts reported as noncontrolling interests and redeemable noncontrolling interests in the consolidated balance sheet represent the amounts the third-parties would hypothetically receive at each balance sheet date under the liquidation provisions of the funds, assuming the net assets of the funds were liquidated at their recorded amounts determined in accordance with GAAP and with tax laws effective at the balance sheet date and distributed to the third-parties. The third-parties’ interests in the results of operations of the funds are determined as the difference in the noncontrolling interest and redeemable noncontrolling interest balances in the consolidated balance sheets between the start and end of each reporting period, after taking into account any capital transactions between the funds and the third-parties. However, the redeemable noncontrolling interest balance is at least equal to the redemption amount. The redeemable noncontrolling interest balance is presented as temporary equity in the mezzanine section of the consolidated balance sheet since these third-parties have the right to redeem their interests in the funds for cash or other assets. |
Net Income (Loss) per Share of Common Stock Attributable to Common Stockholders | Net Income (Loss) per Share of Common Stock Attributable to Common Stockholders Basic net income (loss) per share of common stock attributable to common stockholders is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average shares of common stock outstanding for the period. During the year ended December 31, 2019, we increased net loss attributable to common stockholders by $8 million to arrive at the numerator used to calculate net loss per share. This adjustment represents the difference between the cash we paid to a financing fund investor for their noncontrolling interest in one of our subsidiaries and the carrying amount of the noncontrolling interest on our consolidated balance sheet, in accordance with ASC 260, Earnings per Share Debt The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income (loss) per share of common stock attributable to common stockholders, because their effect was anti-dilutive (in millions): Year Ended December 31, 2019 2018 2017 Stock-based awards 10 10 10 Convertible senior notes 1 1 2 Warrants — — 1 |
Business Combinations | Business Combinations We account for business acquisitions under ASC 805, Business Combinations |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less at the date of purchase are considered cash equivalents. Our cash equivalents are primarily comprised of money market funds. |
Restricted Cash | Restricted Cash We maintain certain cash balances restricted as to withdrawal or use. Our restricted cash is comprised primarily of cash as collateral for our sales to lease partners with a resale value guarantee, letters of credit, real estate leases, insurance policies, credit card borrowing facilities and certain operating leases. In addition, restricted cash includes cash received from certain fund investors that have not been released for use by us and cash held to service certain payments under various secured debt facilities. The following table totals cash and cash equivalents and restricted cash as reported on the consolidated balance sheets; the sums are presented in the consolidated statements of cash flows (in millions): December 31, December 31, December 31, December 31, 2019 2018 2017 2016 Cash and cash equivalents $ 6,268 $ 3,686 $ 3,368 $ 3,393 Restricted cash, current portion 246 193 155 106 Restricted cash, net of current portion 269 398 442 268 Total as presented in the consolidated statements of cash flows $ 6,783 $ 4,277 $ 3,965 $ 3,767 |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts receivable primarily include amounts related to receivables from financial institutions and leasing companies offering various financing products to our customers, sales of energy generation and storage products, sales of regulatory credits to other automotive manufacturers and maintenance services on vehicles owned by leasing companies. We provide an allowance against accounts receivable to the amount we reasonably believe will be collected. We write-off accounts receivable when they are deemed uncollectible. We typically do not carry significant accounts receivable related to our vehicle and related sales as customer payments are due prior to vehicle delivery, except for amounts due from commercial financial institutions for approved financing arrangements between our customers and the financial institutions. |
MyPower Customer Notes Receivable | MyPower Customer Notes Receivable We have customer notes receivable under the legacy MyPower loan program. MyPower was offered by SolarCity to provide residential customers with the option to finance the purchase of a solar energy system through a 30-year loan. The outstanding balances, net of any allowance for potentially uncollectible amounts, are presented on the consolidated balance sheet as a component of prepaid expenses and other current assets for the current portion and as MyPower customer notes receivable, net of current portion, for the long-term portion. In determining the allowance and credit quality for customer notes receivable, we identify significant customers with known disputes or collection issues and also consider our historical level of credit losses and current economic trends that might impact the level of future credit losses. Customer notes receivable that are individually impaired are charged-off as a write-off of the allowance for losses. Since acquisition, there have been no new significant customers with known disputes or collection issues, and the amount of potentially uncollectible amounts has been insignificant. In addition, there were no material non-accrual or past due customer notes receivable as of December 31, 2019. |
Concentration of Risk | Concentration of Risk Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist of cash, cash equivalents, restricted cash, accounts receivable, convertible note hedges, and interest rate swaps. Our cash balances are primarily invested in money market funds or on deposit at high credit quality financial institutions in the U.S. These deposits are typically in excess of insured limits. As of December 31, 2019 and 2018, no entity represented 10% or more of our total accounts receivable balance . The risk of concentration for our interest rate swaps is mitigated by transacting with several highly-rated multinational banks. Supply Risk We are dependent on our suppliers, the majority of which are single source suppliers, and the inability of these suppliers to deliver necessary components of our products in a timely manner at prices, quality levels and volumes acceptable to us, or our inability to efficiently manage these components from these suppliers, could have a material adverse effect on our business, prospects, financial condition and operating results. |
Inventory Valuation | Inventory Valuation Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost for vehicles and energy storage products, which approximates actual cost on a first-in, first-out basis. In addition, cost for solar energy systems is recorded using actual cost. We record inventory write-downs for excess or obsolete inventories based upon assumptions about current and future demand forecasts. If our inventory on-hand is in excess of our future demand forecast, the excess amounts are written-off. We also review our inventory to determine whether its carrying value exceeds the net amount realizable upon the ultimate sale of the inventory. This requires us to determine the estimated selling price of our vehicles less the estimated cost to convert the inventory on-hand into a finished product. Once inventory is written-down, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Should our estimates of future selling prices or production costs change, additional and potentially material increases to this reserve may be required. A small change in our estimates may result in a material charge to our reported financial results. |
Operating Lease Vehicles | Operating Lease Vehicles Vehicles that are leased as part of our direct vehicle leasing program, vehicles delivered to leasing partners with a resale value guarantee and a buyback option, and vehicles delivered to customers with resale value guarantee where exercise is probable are classified as operating lease vehicles as the related revenue transactions are treated as operating leases under ASC 842 ( refer to the Automotive Leasing Revenue section above for details Solar Energy Systems, Net We are the lessor of solar energy systems. Prior to January 1, 2019, these leases were accounted for as operating leases in accordance with ASC 840. Under ASC 840, to determine lease classification, we evaluated the lease terms to determine whether there was a transfer of ownership or bargain purchase option at the end of the lease, whether the lease term was greater than 75% of the useful life or whether the present value of the minimum lease payments exceeded 90% of the fair value at lease inception. As discussed in the Leases Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the respective assets, as follows: Solar energy systems in service 30 to 35 years Initial direct costs related to customer solar energy system lease acquisition costs Lease term (up to 25 years) Solar energy systems pending interconnection will be depreciated as solar energy systems in service when they have been interconnected and placed in-service. Solar energy systems under construction represents systems that are under installation, which will be depreciated as solar energy systems in service when they are completed, interconnected and placed in service. Initial direct costs related to customer solar energy system agreement acquisition costs are capitalized and amortized over the term of the related customer agreements. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net, including leasehold improvements, are recognized at cost less accumulated depreciation. Depreciation is generally computed using the straight-line method over the estimated useful lives of the respective assets, as follows: Machinery, equipment, vehicles and office furniture 2 to 12 years Building and building improvements 15 to 30 years Computer equipment and software 3 to 10 years Leasehold improvements are depreciated on a straight-line basis over the shorter of their estimated useful lives or the terms of the related leases. Upon the retirement or sale of our property, plant and equipment, the cost and associated accumulated depreciation are removed from the consolidated balance sheet, and the resulting gain or loss is reflected on the consolidated statement of operations. Maintenance and repair expenditures are expensed as incurred while major improvements that increase the functionality, output or expected life of an asset are capitalized and depreciated ratably over the identified useful life. Interest expense on outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest on construction-in-progress is included within property, plant and equipment and is amortized over the life of the related assets. Prior to the adoption of the new lease standard, we were deemed to be the owner, for accounting purposes, during the construction phase of certain long-lived assets under build-to-suit lease arrangements because of our involvement with the construction, our exposure to any potential cost overruns or our other commitments under the arrangements. In accordance with ASC 840, we recognized build-to-suit lease assets under construction and corresponding build-to-suit lease liabilities on the consolidated balance sheet. Once construction was completed, if a lease met certain “sale-leaseback” criteria, we removed the asset and liability and accounted for the lease as an operating lease. Otherwise, the lease was accounted for as a capital lease. As a result of the adoption of the new lease standard on January 1, 2019, we have de-recognized all build-to-suit lease assets and have reassessed these leases to be operating lease right-of-use assets within the consolidated balance sheet as of December 31, 2019 (refer to Leases section above for details). |
Long-Lived Assets Including Acquired Intangible Assets | Long-Lived Assets Including Acquired Intangible Assets We review our property, plant and equipment, long-term prepayments and intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. We measure recoverability by comparing the carrying amount to the future undiscounted cash flows that the asset is expected to generate. If the asset is not recoverable, its carrying amount would be adjusted-down to its fair value. For the years ended December 31, 2019 and 2018, we have recognized certain impairments of our long-lived assets (refer to Note 4, Goodwill and Intangible Assets Restructuring and Other Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives, which range from one to thirty years Goodwill We assess goodwill for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that it might be impaired, by comparing its carrying value to the reporting unit’s fair value. For the years ended December 31, 2019, 2018, and 2017, we had not recognized any impairment of goodwill. |
Capitalization of Software Costs | Capitalization of Software Costs For costs incurred in development of internal use software, we capitalize costs incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life of three to ten years. We evaluate the useful lives of these assets on an annual basis, and we test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Foreign Currency | Foreign Currency We determine the functional and reporting currency of each of our international subsidiaries and their operating divisions based on the primary currency in which they operate. In cases where the functional currency is not the U.S. dollar, we recognize a cumulative translation adjustment created by the different rates we apply to accumulated deficits, including current period income or loss and the balance sheet. For each subsidiary, we apply the monthly average functional exchange rate to its monthly income or loss and the month-end functional currency rate to translate the balance sheet. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Transaction gains and losses are recognized in other income (expense), net, in the consolidated statements of operations. For the years ended December 31, 2019, 2018 and 2017, we recorded foreign currency transaction gains of $48 million, gains of $2 million and losses of $52 million, respectively. |
Warranties | Warranties We provide a manufacturer’s warranty on all new and used vehicles and production powertrain components and systems we sell. In addition, we also provide a warranty on the installation and components of the energy generation and storage systems we sell for periods typically between 10 to 25 years. We accrue a warranty reserve for the products sold by us, which includes our best estimate of the projected costs to repair or replace items under warranties and recalls when identified. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. These estimates are inherently uncertain given our relatively short history of sales, and changes to our historical or projected warranty experience may cause material changes to the warranty reserve in the future. The warranty reserve does not include projected warranty costs associated with our vehicles subject to lease accounting and our solar energy systems under lease contracts or PPAs, as the costs to repair these warranty claims are expensed as incurred. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other, while the remaining balance is included within other long-term liabilities on the consolidated balance sheets. Warranty expense is recorded as a component of cost of revenues in the consolidated statements of operations. Due to the magnitude of our automotive business, accrued warranty balance as of December 31, 2019 was primarily related to our automotive segment. Accrued warranty activity consisted of the following (in millions): Year Ended December 31, 2019 2018 2017 Accrued warranty—beginning of period $ 748 $ 402 $ 267 Assumed warranty liability from acquisition — — 5 Warranty costs incurred (250 ) (209 ) (123 ) Net changes in liability for pre-existing warranties, including expirations and foreign exchange impact 36 (26 ) 4 Additional warranty accrued from adoption of the new revenue standard — 37 — Provision for warranty 555 544 249 Accrued warranty—end of period $ 1,089 $ 748 $ 402 For the years ended December 31, 2019 and 2018 , and 2017, warranty costs incurred for vehicles accounted for as operating leases were $20 million, $22 million and $36 million, respectively . |
Solar Renewable Energy Credits | Solar Renewable Energy Credits We account for solar renewable energy credits (“SRECs”) when they are purchased by us or sold to third-parties. For SRECs generated by solar energy systems owned by us and minted by government agencies, we do not recognize any specifically identifiable costs as there are no specific incremental costs incurred to generate the SRECs. We recognize revenue within the energy generation and storage segment from the sale of an SREC when the SREC is transferred to the buyer, and the cost of the SREC, if any, is then recorded to energy generation and storage cost of revenue. |
Deferred Investment Tax Credit Revenue | Deferred Investment Tax Credit Revenue We have solar energy systems that are eligible for ITCs that accrue to eligible property under the Internal Revenue Code (“IRC”). Under Section 50(d)(5) of the IRC and the related regulations, a lessor of qualifying property may elect to treat the lessee as the owner of such property for the purposes of claiming the ITCs associated with such property. These regulations enable the ITCs to be separated from the ownership of the property and allow the transfer of the ITCs. Under our lease pass-through fund arrangements, we can make a tax election to pass-through the ITCs to the investors, who are the legal lessee of the property. Therefore, we are able to monetize these ITCs to the investors who can utilize them in return for cash payments. We consider the monetization of ITCs to constitute one of the key elements of realizing the value associated with solar energy systems. Consequently, we consider the proceeds from the monetization of ITCs to be a component of revenue generated from solar energy systems. Under the new revenue standard, we recognize revenue upon the delivery of ITCs to investors under our lease pass-through fund arrangements as this is the point in time that control of ITCs has transferred We indemnify the investors for any recapture of ITCs due to our non-compliance. We have concluded that the likelihood of a recapture event is remote, and consequently, we have not recognized a liability for this indemnification on the consolidated balance sheets. |
Nevada Tax Incentive | Nevada Tax Incentives We had entered into agreements with the State of Nevada and Storey County in Nevada that provide abatements for sales, use, real property, personal property and employer excise taxes, discounts to the base tariff energy rates and transferable tax credits. These incentives are available for the applicable periods beginning on October 17, 2014 and ending on either June 30, 2024 or June 30, 2034 (depending on the incentive). Under these agreements, we were eligible for a maximum of $195 million of transferable tax credits, subject to capital investments by us and our partners for Gigafactory Nevada of at least $3.50 billion, which we exceeded during 2017, and specified hiring targets for Gigafactory Nevada, which we exceeded during 2018. We recorded these credits as earned when we had evidence there was a market for their sale. Credits were applied as a cost offset to either employee expense or to capital assets, depending on the source of the credits. Credits earned from employee hires or capital spending by our partners at Gigafactory Nevada were recorded as a reduction to operating expenses. As of December 31, 2019 and 2018, we had earned the maximum of $195 million of transferable tax credits under these agreements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019-04, ASU No. 2019-05, ASU 2019-10 and ASU 2019-11 to provide additional guidance on the credit losses standard. The ASUs are effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We plan to adopt the ASUs on January 1, 2020. The ASUs are currently not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, to simplify the test for goodwill impairment by removing Step 2. An entity will, therefore, perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to the reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. The ASU is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Adoption of the ASU is prospective. We plan to adopt the ASU prospectively on January 1, 2020. The ASU is currently not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Adoption of the ASU is either retrospective or prospective. We plan to adopt the ASU prospectively on January 1, 2020. The ASU is currently not expected to have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. We have not early adopted this ASU for 2019. The ASU is currently not expected to have a material impact on our consolidated financial statements. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases, to require lessees to recognize all leases, with limited exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to legacy lease accounting, ASC 840. The ASU also eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. Subsequently, the FASB issued ASU No. 2018-10 , Codification Improvements to Topic 842 Targeted Improvements Narrow-Scope Improvements for Lessors Codification Improvements In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities In January 2018, the FASB issued ASU No. 2018-01, Land Easement Practical Expedient Transition to Topic 842 Leases |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Deferred Revenue Activity | Deferred revenue activity related to the access to our Supercharger network, internet connectivity, Autopilot, FSD features and over-the-air software updates on automotive sales with and without resale value guarantee consisted of the following (in millions): Year ended December 31, 2019 2018 Deferred revenue on automotive sales with and without resale value guarantee— beginning of period $ 883 $ 476 Additions 880 532 Net changes in liability for pre-existing contracts 9 (13 ) Revenue recognized (300 ) (112 ) Deferred revenue on automotive sales with and without resale value guarantee— end of period $ 1,472 $ 883 |
Schedule of Disaggregation of Revenue by Major Source | The following table disaggregates our revenue by major source (in millions): Year Ended December 31, 2019 2018 Automotive sales without resale value guarantee $ 19,212 $ 15,810 Automotive sales with resale value guarantee (1) 146 1,403 Automotive regulatory credits 594 419 Energy generation and storage sales (2) 1,000 1,056 Services and other 2,226 1,391 Total revenues from sales and services 23,178 20,079 Automotive leasing 869 883 Energy generation and storage leasing (2) 531 499 Total revenues $ 24,578 $ 21,461 (1) We made pricing adjustments to our vehicle offerings in 2019, which resulted in a reduction of automotive sales with resale value guarantee revenues. Refer to Automotive Sales with Resale Value Guarantee (2) Under ASC 842, Leases Leases |
Schedule of Potentially Dilutive Shares that were Excluded from Computation of Diluted Net Income (Loss) per Share of Common Stock | The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income (loss) per share of common stock attributable to common stockholders, because their effect was anti-dilutive (in millions): Year Ended December 31, 2019 2018 2017 Stock-based awards 10 10 10 Convertible senior notes 1 1 2 Warrants — — 1 |
Schedule of Cash and Cash Equivalents and Restricted Cash | The following table totals cash and cash equivalents and restricted cash as reported on the consolidated balance sheets; the sums are presented in the consolidated statements of cash flows (in millions): December 31, December 31, December 31, December 31, 2019 2018 2017 2016 Cash and cash equivalents $ 6,268 $ 3,686 $ 3,368 $ 3,393 Restricted cash, current portion 246 193 155 106 Restricted cash, net of current portion 269 398 442 268 Total as presented in the consolidated statements of cash flows $ 6,783 $ 4,277 $ 3,965 $ 3,767 |
Estimated Useful Lives of Respective Assets | Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the respective assets, as follows: Solar energy systems in service 30 to 35 years Initial direct costs related to customer solar energy system lease acquisition costs Lease term (up to 25 years) |
Schedule of Estimated Useful Lives of Related Assets | Depreciation is generally computed using the straight-line method over the estimated useful lives of the respective assets, as follows: Machinery, equipment, vehicles and office furniture 2 to 12 years Building and building improvements 15 to 30 years Computer equipment and software 3 to 10 years |
Schedule of Accrued Warranty Activity | Year Ended December 31, 2019 2018 2017 Accrued warranty—beginning of period $ 748 $ 402 $ 267 Assumed warranty liability from acquisition — — 5 Warranty costs incurred (250 ) (209 ) (123 ) Net changes in liability for pre-existing warranties, including expirations and foreign exchange impact 36 (26 ) 4 Additional warranty accrued from adoption of the new revenue standard — 37 — Provision for warranty 555 544 249 Accrued warranty—end of period $ 1,089 $ 748 $ 402 |
Adoption of ASU 2016-02 [Member] | |
Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption of New Lease Standard | The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2019 for the adoption of the new lease standard was as Balances at December 31, 2018 Adjustments from Adoption of New Lease Standard Balances at January 1, 2019 Assets Prepaid expenses and other current assets $ 366 $ — $ 366 Property, plant and equipment, net 11,330 (1,617 ) 9,713 Operating lease right-of-use assets — 1,286 1,286 Other assets 572 (141 ) 431 Liabilities Accrued liabilities and other 2,094 118 2,212 Current portion of long-term debt and finance leases 2,568 — 2,568 Long-term debt and finance leases, net of current portion 9,404 — 9,404 Other long-term liabilities 2,710 (687 ) 2,023 Equity Accumulated deficit (5,318 ) 97 (5,221 ) |
Business Combinations (Tables)
Business Combinations (Tables) - Maxwell Technologies, Inc. [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The allocation of the purchase price is based on management’s estimate of the Acquisition Date fair values of the assets acquired and liabilities assumed, as follows (in millions): Assets acquired: Cash and cash equivalents $ 32 Accounts receivable 24 Inventory 32 Property, plant and equipment, net 27 Operating lease right-of-use assets 10 Intangible assets 105 Prepaid expenses and other assets, current and non-current 3 Total assets acquired 233 Liabilities and equity assumed: Accounts payable (10 ) Accrued liabilities and other (28 ) Debt and finance leases, current and non-current (44 ) Deferred revenue, current (1 ) Other long-term liabilities (14 ) Additional paid-in capital (8 ) Total liabilities and equity assumed (105 ) Net assets acquired 128 Goodwill 79 Total purchase price $ 207 |
Schedule of Fair Value of the Identified Intangible Assets and their Useful Lives | The determination of the fair value of identified intangible assets and their respective useful lives are as follows (in millions, except for estimated useful life): Fair Value Useful Life (in years) Developed technology $ 102 9 Customer relations 2 9 Trade name 1 10 Total intangible assets $ 105 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Intangible Assets | Information regarding our intangible assets including assets recognized from our acquisitions December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Other Net Carrying Amount Gross Carrying Amount Accumulated Amortization Other Net Carrying Amount Finite-lived intangible assets: Developed technology $ 291 $ (72 ) $ 1 $ 220 $ 152 $ (40 ) $ 1 $ 113 Trade names 3 (1 ) 1 3 45 (44 ) — 1 Favorable contracts and leases, net 113 (24 ) — 89 113 (17 ) — 96 Other 38 (16 ) — 22 36 (12 ) 1 25 Total finite-lived intangible assets 445 (113 ) 2 334 346 (113 ) 2 235 Indefinite-lived intangible assets: Gigafactory Nevada water rights 5 — — 5 — — — — In-process research and development (“IPR&D”) 60 — (60 ) — 60 — (13 ) 47 Total indefinite-lived intangible assets 65 — (60 ) 5 60 — (13 ) 47 Total intangible assets $ 510 $ (113 ) $ (58 ) $ 339 $ 406 $ (113 ) $ (11 ) $ 282 |
Total Future Amortization Expense for Finite-lived Intangible Assets | Total future amortization expense for finite-lived intangible assets was estimated as follows (in millions): 2020 $ 50 2021 49 2022 48 2023 42 2024 27 Thereafter 118 Total $ 334 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Our assets and liabilities that were measured at fair value on a recurring basis were as follows (in millions): December 31, 2019 December 31, 2018 Fair Value Level I Level II Level III Fair Value Level I Level II Level III Money market funds (cash and cash equivalents & restricted cash) $ 1,632 $ 1,632 $ — $ — $ 1,813 $ 1,813 $ — $ — Interest rate swap asset 1 — 1 — 12 — 12 — Interest rate swap liability (27 ) — (27 ) — (1 ) — (1 ) — Total $ 1,606 $ 1,632 $ (26 ) $ — $ 1,824 $ 1,813 $ 11 $ — |
Schedule of Interest Rate Swaps Outstanding | Our interest rate swaps outstanding were as follows (in millions): December 31, 2019 December 31, 2018 Aggregate Notional Amount Gross Asset at Fair Value Gross Liability at Fair Value Aggregate Notional Amount Gross Asset at Fair Value Gross Liability at Fair Value Interest rate swaps $ 821 $ 1 $ 27 $ 800 $ 12 $ 1 Year Ended December 31, 2019 2018 2017 Gross gains $ 11 $ 22 $ 7 Gross losses $ 51 $ 12 $ 13 |
Schedule of Estimated Fair Values and Carrying Values | The following table presents the estimated fair values and the carrying values (in millions): December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Convertible Senior Notes $ 3,686 $ 6,067 $ 3,661 $ 4,347 5.30% $ 1,782 $ 1,748 $ 1,779 $ 1,575 Solar asset-backed notes $ 1,155 $ 1,211 $ 1,183 $ 1,207 Solar loan-backed notes $ 175 $ 189 $ 203 $ 212 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Our inventory consisted of the following (in millions): December 31, December 31, 2019 2018 Raw materials $ 1,428 $ 932 Work in process 362 297 Finished goods (1) 1,356 1,581 Service parts 406 303 Total $ 3,552 $ 3,113 (1) Finished goods inventory includes vehicles in transit to fulfill customer orders, new vehicles available for sale, used vehicles and energy storage products. |
Solar Energy Systems, Net (Tabl
Solar Energy Systems, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Solar Energy Systems [Member] | |
Property Plant And Equipment [Line Items] | |
Components of Solar Energy Systems, Net | Solar energy systems, net, consisted of the following (in millions): December 31, December 31, 2019 2018 Solar energy systems in service $ 6,682 $ 6,431 Initial direct costs related to customer solar energy system lease acquisition costs 102 99 6,784 6,530 Less: accumulated depreciation and amortization (1) (723 ) (496 ) 6,061 6,034 Solar energy systems under construction 18 68 Solar energy systems pending interconnection 59 169 Solar energy systems, net (2) $ 6,138 $ 6,271 (1) Depreciation and amortization expense during the years ended December 31, 2019, 2018 and 2017 was $227 million, $276 million, and $213 million, respectively. (2) As of December 31, 2019 and 2018, solar energy systems, net, included $36 million of gross finance leased assets with accumulated depreciation and amortization of $6 million and $4 million, respectively. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Our property, plant and equipment, net, consisted of the following (in millions): December 31, December 31, 2019 2018 Machinery, equipment, vehicles and office furniture $ 7,167 $ 6,329 Tooling 1,493 1,398 Leasehold improvements 1,087 961 Land and buildings 3,024 4,047 Computer equipment, hardware and software 595 487 Construction in progress 764 807 14,130 14,029 Less: Accumulated depreciation (3,734 ) (2,699 ) Total $ 10,396 $ 11,330 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | As of December 31, 2019 and 2018, accrued liabilities and other current liabilities consisted of the following (in millions): December 31, December 31, 2019 2018 Accrued purchases (1) $ 638 $ 394 Payroll and related costs 466 449 Taxes payable (2) 611 348 Accrued interest 86 78 Financing obligation, current portion 57 62 Accrued warranty, current portion 344 201 Sales return reserve, current portion 272 108 Build-to-suit lease liability, current portion — 82 Operating lease right-of-use liabilities, current portion 228 — Other current liabilities 203 372 Total $ 2,905 $ 2,094 (1) Accrued purchases primarily reflects receipts of goods and services that we had not been invoiced yet. As we are invoiced for these goods and services, this balance will reduce and accounts payable will increase. (2) Taxes payable includes value added tax, sales tax, property tax, use tax and income tax payables. |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities [Abstract] | |
Schedule of Other Long-term Liabilities | As of December 31, 2019 and 2018, other long-term liabilities consisted of the following (in millions): December 31, December 31, 2019 2018 Accrued warranty reserve $ 745 $ 547 Build-to-suit lease liability — 1,662 Operating lease right-of-use liabilities 956 — Deferred rent expense — 59 Financing obligation 37 50 Sales return reserve 545 84 Other noncurrent liabilities 372 308 Total other long-term liabilities $ 2,655 $ 2,710 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following is a summary of our debt as of December 31, 2019 (in millions): Unpaid Unused Principal Net Carrying Value Committed Contractual Contractual Balance Current Long-Term Amount (1) Interest Rates Maturity Date Recourse debt: 1.25% Convertible Senior Notes due in 2021 ("2021 Notes") $ 1,380 $ — $ 1,304 $ — 1.25 % March 2021 2.375% Convertible Senior Notes due in 2022 ("2022 Notes") 978 — 902 — 2.375 % March 2022 2.00% Convertible Senior Notes due in 2024 ("2024 Notes") 1,840 — 1,383 — 2.00 % May 2024 5.30% Senior Notes due in 2025 ("2025 Notes") 1,800 — 1,782 — 5.30 % August 2025 Credit Agreement 1,727 141 1,586 499 2.7%-4.8% June 2020-July 2023 Zero-Coupon Convertible Senior Notes due in 2020 103 97 — — 0.0 % December 2020 Solar Bonds and other Loans 70 15 53 — 3.6%-5.8% March 2020-January 2031 Total recourse debt 7,898 253 7,010 499 Non-recourse debt: Automotive Asset-backed Notes 1,577 573 997 — 2.0%-7.9% February 2020- May 2023 Solar Asset-backed Notes 1,183 32 1,123 — 4.0%-7.7% September 2024-February 2048 China Loan Agreements 741 444 297 1,542 3.7%-4.0% September 2020-December 2024 Cash Equity Debt 454 10 430 — 5.3%-5.8% July 2033-January 2035 Solar Loan-backed Notes 182 11 164 — 4.8%-7.5% September 2048-September 2049 Warehouse Agreements 167 21 146 933 3.1%-3.6% September 2021 Solar Term Loans 161 8 152 — 5.4 % January 2021 Canada Credit Facility 40 24 16 — 4.2%-5.9% November 2022 Solar Renewable Energy Credit and other Loans 89 23 67 6 4.5%-7.4% March 2020-June 2022 Total non-recourse debt 4,594 1,146 3,392 2,481 Total debt $ 12,492 $ 1,399 $ 10,402 $ 2,980 The following is a summary of our debt as of December 31, 2018 (in millions): Unpaid Unused Principal Net Carrying Value Committed Contractual Contractual Balance Current Long-Term Amount (1) Interest Rates Maturity Date Recourse debt: 0.25% Convertible Senior Notes due in 2019 ("2019 Notes") $ 920 $ 913 $ — $ — 0.25 % March 2019 2021 Notes 1,380 — 1,244 — 1.25 % March 2021 2022 Notes 978 — 871 — 2.375 % March 2022 2025 Notes 1,800 — 1,779 — 5.30 % August 2025 Credit Agreement 1,540 — 1,540 231 1% plus LIBOR June 2020 1.625% Convertible Senior Notes due in 2019 566 541 — — 1.625 % November 2019 Zero-Coupon Convertible Senior Notes due in 2020 103 — 92 — 0.0 % December 2020 Vehicle, Solar Bonds and other Loans 101 1 100 — 1.8%-7.6% January 2019-January 2031 Total recourse debt 7,388 1,455 5,626 231 Non-recourse debt: Solar Asset-backed Notes 1,214 28 1,155 — 4.0%-7.7% September 2024-February 2048 Automotive Asset-backed Notes 1,178 468 704 — 2.3%-7.9% December 2019-June 2022 Cash Equity Debt 467 11 442 — 5.3%-5.8% July 2033-January 2035 Solar Term Loans 350 188 162 — 6.0%-6.1% January 2019-January 2021 Solar Loan-backed Notes 210 10 193 — 4.8%-7.5% September 2048-September 2049 Warehouse Agreements 92 14 78 1,008 3.9%-4.2% September 2020 Canada Credit Facility 73 32 41 — 3.6%-5.9% November 2022 Solar Renewable Energy Credit and other Loans 27 16 10 18 5.1%-7.9% December 2019-July 2021 Total non-recourse debt 3,611 767 2,785 1,026 Total debt $ 10,999 $ 2,222 $ 8,411 $ 1,257 (1) Unused committed amounts under some of our credit facilities and financing funds are subject to satisfying specified conditions prior to draw-down (such as pledging to our lenders sufficient amounts of qualified receivables, inventories, leased vehicles and our interests in those leases, solar energy systems and the associated customer contracts, our interests in financing funds or various other assets). Upon draw-down of any unused committed amounts, there are no restrictions on use of available funds for general corporate purposes. |
Schedule of Interest Expense | The following table presents the interest expense related to the contractual interest coupon, the amortization of debt issuance costs and the amortization of debt discounts on our convertible senior notes with cash conversion features, which include the 1.50% Convertible Senior Notes due in 2018, the 2019 Notes, the 2021 Notes, the 2022 Notes and the 2024 Notes (in millions): Year Ended December 31, 2019 2018 2017 Contractual interest coupon $ 65 $ 43 $ 39 Amortization of debt issuance costs 7 7 7 Amortization of debt discounts 148 123 114 Total $ 220 $ 173 $ 160 |
Schedule of Future Principal Maturities of Debt | The future scheduled principal maturities of debt as of December 31, 2019 were as follows (in millions): Recourse debt Non-recourse debt Total 2020 $ 259 $ 1,155 $ 1,414 2021 1,382 909 2,291 2022 1,024 1,013 2,037 2023 1,586 199 1,785 2024 1,840 558 2,398 Thereafter 1,807 760 2,567 Total $ 7,898 $ 4,594 $ 12,492 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating and Financing Leases Presented in Balance Sheets | The balances for the operating and finance leases where we are the lessee are presented as follows (in millions) within our consolidated balance sheet: December 31, 2019 Operating leases: Operating lease right-of-use assets $ 1,218 Accrued liabilities and other $ 228 Other long-term liabilities 956 Total operating lease liabilities $ 1,184 Finance leases: Solar energy systems, net $ 30 Property, plant and equipment, net 1,600 Total finance lease assets $ 1,630 Current portion of long-term debt and finance leases $ 386 Long-term debt and finance leases, net of current portion 1,232 Total finance lease liabilities $ 1,618 |
Schedule of Components of Lease Expense and Other Information Related to Leases | The components of lease expense are as follows (in millions) within our consolidated statements of operations: Year Ended December 31, 2019 Operating lease expense: Operating lease expense (1) $ 426 Finance lease expense: Amortization of leased assets $ 299 Interest on lease liabilities 104 Total finance lease expense $ 403 Total lease expense $ 829 (1) Includes short-term leases and variable lease costs, which are immaterial. Other information related to leases where we are the lessee is as follows: December 31, 2019 Weighted-average remaining lease term: Operating leases 6.2 years Finance leases 3.9 years Weighted-average discount rate: Operating leases 6.5 % Finance leases 6.5 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases where we are the lessee is as follows (in millions) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 396 Operating cash outflows from finance leases (interest payments) $ 104 Financing cash outflows from finance leases $ 321 Leased assets obtained in exchange for finance lease liabilities $ 616 Leased assets obtained in exchange for operating lease liabilities $ 202 |
Schedule of Maturities of Operating and Finance Lease Liabilities | As of December 31, 2019 (in millions): Operating Finance Leases Leases 2020 $ 296 $ 474 2021 262 478 2022 210 600 2023 174 224 2024 146 5 Thereafter 372 13 Total minimum lease payments 1,460 1,794 Less: Interest 276 176 Present value of lease obligations 1,184 1,618 Less: Current portion 228 386 Long-term portion of lease obligations $ 956 $ 1,232 |
Future Minimum Lease Payments Under Non-Cancellable Leases | Under legacy lease accounting (ASC 840), future minimum lease payments under non-cancellable leases as of December 31, 2018 are as follows (in millions): Operating Finance Leases Leases 2019 $ 276 $ 417 2020 257 503 2021 230 506 2022 183 24 2023 158 5 Thereafter 524 6 Total minimum lease payments $ 1,628 1,461 Less: Interest 122 Present value of lease obligations 1,339 Less: Current portion 346 Long-term portion of lease obligations $ 993 |
Maturities of Operating Lease Receivables from Customers | As of December 31, 2019, maturities of our operating lease receivables from customers for each of the next five years and thereafter were as follows (in millions): 2020 $ 644 2021 494 2022 317 2023 190 2024 191 Thereafter 2,294 Total $ 4,130 |
Future Minimum Lease Payments to be Received from Customers under Non-cancellable Operating Leases ASC 840 | U nder legacy lease accounting (ASC 840), future minimum lease payments to be received from customers under non-cancellable leases as of December 31, 2018 are as follows (in millions): 2019 $ 502 2020 418 2021 271 2022 187 2023 189 Thereafter 2,469 Total $ 4,036 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option and RSU Activity | The following table summarizes our stock option and RSU activity: Stock Options RSUs Weighted- Weighted- Weighted- Average Aggregate Average Number of Average Remaining Intrinsic Number Grant Options Exercise Contractual Value of RSUs Date Fair (in Price Life (years) (in billions) (in Value Balance, December 31, 2018 31,208 $ 273.40 4,659 $ 294.63 Granted 1,473 $ 265.26 3,752 $ 282.74 Exercised or released (1,441 ) $ 106.68 (1,949 ) $ 277.13 Cancelled (1,245 ) $ 310.57 (1,656 ) $ 295.05 Balance, December 29,995 $ 279.49 6.89 $ 4.17 4,806 $ 291.06 Vested and expected December 31, 2019 15,860 $ 228.29 6.05 $ 3.02 4,804 $ 291.05 Exercisable and vested, December 31, 2019 7,025 $ 94.07 3.39 $ 2.28 |
Schedule of Fair Value of Stock Option Award and ESPP on Grant Date | We use the fair value method in recognizing stock-based compensation expense. Under the fair value method, we estimate the fair value of each stock option award with service or service and performance conditions and the ESPP on the grant date generally using the Black-Scholes option pricing model and the weighted-average assumptions in the following table: Year Ended December 31, 2019 2018 2017 Risk-free interest rate: Stock options 2.4 % 2.5 % 1.8 % ESPP 2.2 % 2.0 % 1.1 % Expected term (in years): Stock options 4.5 4.7 5.1 ESPP 0.5 0.5 0.5 Expected volatility: Stock options 48 % 42 % 42 % ESPP 53 % 43 % 35 % Dividend yield: Stock options 0.0 % 0.0 % 0.0 % ESPP 0.0 % 0.0 % 0.0 % Grant date fair value per share: Stock options $ 111.59 $ 121.92 $ 122.25 ESPP $ 78.25 $ 84.37 $ 75.05 |
Summary of Operational Milestone Based on Revenue or Adjusted EBITDA | Total Annualized Revenue Annualized Adjusted EBITDA (in billions) $20.0 $1.5 $35.0 $3.0 $55.0 $4.5 $75.0 $6.0 $100.0 $8.0 $125.0 $10.0 $150.0 $12.0 $ 175.0 $14.0 |
Summary of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense by line item in the consolidated statements of operations (in millions): Year Ended December 31, 2019 2018 2017 Cost of revenues $ 128 $ 109 $ 64 Research and development 285 261 218 Selling, general and administrative 482 375 185 Restructuring and other 3 4 — Total $ 898 $ 749 $ 467 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss before Provision For Income Taxes | Year Ended December 31, 2019 2018 2017 Domestic $ 287 $ 412 $ 993 Noncontrolling interest and redeemable noncontrolling interest (87 ) 87 279 Foreign 465 506 937 Loss before income taxes $ 665 $ 1,005 $ 2,209 |
Components of Provision for Income Taxes | The components of the provision for income taxes for the years ended December 31, 2019, 2018 and 2017 consisted of the following (in millions): Year Ended December 31, 2019 2018 2017 Current: Federal $ — $ (1 ) $ (10 ) State 5 3 2 Foreign 86 24 43 Total current 91 26 35 Deferred: Federal (4 ) — — State — — — Foreign 23 32 (3 ) Total deferred 19 32 (3 ) Total provision for income taxes $ 110 $ 58 $ 32 |
Schedule of Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) as of December 31, 2019 and 2018 consisted of the following (in millions): December 31, December 31, 2019 2018 Deferred tax assets: Net operating loss carry-forwards $ 1,846 $ 1,760 Research and development credits 486 377 Other tax credits 126 128 Deferred revenue 301 156 Inventory and warranty reserves 243 165 Stock-based compensation 102 102 Operating lease right-of-use liabilities 290 — Accruals and others 16 28 Total deferred tax assets 3,410 2,716 Valuation allowance (1,956 ) (1,806 ) Deferred tax assets, net of valuation allowance 1,454 910 Deferred tax liabilities: Depreciation and amortization (1,185 ) (861 ) Investment in certain financing funds (17 ) (33 ) Operating lease right-of-use assets (263 ) — Other (24 ) (24 ) Total deferred tax liabilities (1,489 ) (918 ) Deferred tax liabilities, net of valuation allowance and deferred tax assets $ (35 ) $ (8 ) |
Schedule of Reconciliation of Taxes at Federal Statutory Rate to Provision for Income Taxes | The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2019, 2018 and 2017 was as follows (in millions): Year Ended December 31, 2019 2018 2017 Tax at statutory federal rate $ (139 ) $ (211 ) $ (773 ) State tax, net of federal benefit 5 3 2 Nondeductible expenses 94 65 30 Excess tax benefits related to stock based compensation (1) (7 ) (44 ) (1,013 ) Foreign income rate differential 189 161 365 U.S. tax credits (107 ) (80 ) (110 ) Noncontrolling interests and redeemable noncontrolling interests adjustment (29 ) 32 66 Effect of U.S. tax law change — — 723 Bargain in purchase gain — — 20 Convertible debt (4 ) — — Unrecognized tax benefits 17 1 3 Change in valuation allowance 91 131 719 Provision for income taxes $ 110 $ 58 $ 32 |
Schedule of Changes to Gross Unrecognized Tax Benefits | The changes to our gross unrecognized tax benefits were as follows (in millions): December 31, 2016 $ 204 Decreases in balances related to prior year tax positions (31 ) Increases in balances related to current year tax positions 84 Changes in balances related to effect of U.S. tax law change (58 ) December 31, 2017 199 Decreases in balances related to prior year tax positions (6 ) Increases in balances related to current year tax positions 60 December 31, 2018 253 Decreases in balances related to prior year tax positions (39 ) Increases in balances related to current year tax positions 59 December 31, 2019 $ 273 |
Variable Interest Entity Arra_2
Variable Interest Entity Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entity Disclosure [Abstract] | |
Carrying Values of Assets and Liabilities of Subsidiary in Consolidated Balance Sheets | The aggregate carrying values of the VIEs’ assets and liabilities, after elimination of any intercompany transactions and balances, in the consolidated balance sheets were as follows (in millions): December 31, December 31, 2019 2018 Assets Current assets Cash and cash equivalents $ 106 $ 75 Restricted cash 90 131 Accounts receivable, net 27 19 Prepaid expenses and other current assets 10 10 Total current assets 233 235 Operating lease vehicles, net 1,183 155 Solar energy systems, net 5,030 5,117 Restricted cash, net of current portion 69 65 Other assets 87 56 Total assets $ 6,602 $ 5,628 Liabilities Current liabilities Accrued liabilities and other 80 133 Deferred revenue 78 21 Customer deposits 9 — Current portion of long-term debt and finance leases 608 663 Total current liabilities 775 817 Deferred revenue, net of current portion 264 178 Long-term debt and finance leases, net of current portion 1,516 1,238 Other long-term liabilities 22 26 Total liabilities $ 2,577 $ 2,259 |
Lease Pass-Through Financing _2
Lease Pass-Through Financing Obligation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease Pass Through Financing Obligation [Abstract] | |
Schedule of Future Minimum Lease Payments to be Received for Operating Leases | As of December 31, 2019, the future minimum master lease payments to be received from investors, for each of the next five years and thereafter, were as follows (in millions): 2020 $ 42 2021 41 2022 33 2023 26 2024 18 Thereafter 450 Total $ 610 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | Related party balances were comprised of the following (in millions): December 31, December 31, 2019 2018 Convertible senior notes due to related parties $ 3 $ 3 |
Segment Reporting and Informa_2
Segment Reporting and Information about Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Total Revenues and Gross Profit by Reportable Segment | The following table presents revenues and gross profit by reportable segment (in millions): Year Ended December 31, 2019 2018 2017 Automotive segment Revenues $ 23,047 $ 19,906 $ 10,643 Gross profit $ 3,879 $ 3,852 $ 1,981 Energy generation and storage segment Revenues $ 1,531 $ 1,555 $ 1,116 Gross profit $ 190 $ 190 $ 242 |
Schedule of Revenues by Geographic Area | The following table presents revenues by geographic area based on the sales location of our products (in millions): Year Ended December 31, 2019 2018 2017 United States $ 12,653 $ 14,872 $ 6,221 China 2,979 1,757 2,027 Netherlands 1,590 965 331 Norway 1,201 813 823 Other 6,155 3,054 2,357 Total $ 24,578 $ 21,461 $ 11,759 |
Schedule of Long-Lived Assets by Geographic Area | The following table presents long-lived assets by geographic area (in millions): December 31, December 31, 2019 2018 United States $ 15,644 $ 16,741 International 890 860 Total $ 16,534 $ 17,601 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Results of Operations | The following table presents selected quarterly results of operations data for the years ended December 31, 2019 and 2018 (in millions, except per share amounts): Three Months Ended March 31 June 30 September 30 December 31 2019 Total revenues $ 4,541 $ 6,350 $ 6,303 $ 7,384 Gross profit $ 566 $ 921 $ 1,191 $ 1,391 Net (loss) income attributable to common stockholders $ (702 ) $ (408 ) $ 143 $ 105 Net (loss) income per share of common stock attributable to common stockholders, basic $ (4.10 ) $ (2.31 ) $ 0.80 $ 0.58 Net (loss) income per share of common stock attributable to common stockholders, diluted $ (4.10 ) $ (2.31 ) $ 0.78 $ 0.56 2018 Total revenues $ 3,409 $ 4,002 $ 6,824 $ 7,226 Gross profit $ 456 $ 619 $ 1,524 $ 1,443 Net (loss) income attributable to common stockholders $ (709 ) $ (718 ) $ 311 $ 140 Net (loss) income per share of common stock attributable to common stockholders, basic $ (4.19 ) $ (4.22 ) $ 1.82 $ 0.81 Net (loss) income per share of common stock attributable to common stockholders, diluted $ (4.19 ) $ (4.22 ) $ 1.75 $ 0.78 |
Overview - Additional Informati
Overview - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Accounting Policies [Abstract] | |
Number of operating segment | 2 |
Number of reportable segment | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Oct. 17, 2014USD ($) | Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |||||
Reduction in automotive sales revenues from buyback options | $ 555,000,000 | ||||
Reduction in cost of automotive sales from buyback options | 451,000,000 | ||||
Reduction in gross profit from buyback options | 104,000,000 | ||||
Total sales return reserve from buyback options | 639,000,000 | ||||
Sales return reserve from short term buyback options | 93,000,000 | ||||
Deferred revenue recognized out of prior period balance | 220,000,000 | $ 81,000,000 | |||
Deferred revenue recognized in next 12 months | 751,000,000 | ||||
Deferred revenue recognized | (300,000,000) | (112,000,000) | |||
Deferred revenue | 1,472,000,000 | 883,000,000 | $ 476,000,000 | ||
Leasing revenue recognized | 869,000,000 | 883,000,000 | 1,107,000,000 | ||
Maximum repurchase price of vehicles under resale value arrangement | 214,000,000 | 480,000,000 | |||
Resale value exercisable by leasing partners | 178,000,000 | ||||
Resale value guarantees, current portion sales to customers | 115,000,000 | 150,000,000 | |||
Resale value guarantees, lease revenue recognized | 150,000,000 | $ 158,000,000 | |||
Right-of-use ("ROU") assets for operating leases | 1,218,000,000 | ||||
Lease liabilities for operating leases | 1,184,000,000 | ||||
Increase in net loss attributable to common stockholders | $ 8,000,000 | ||||
Number of customers with known disputes or collection issues | Customer | 0 | ||||
Number of customers with material non-accrual or past due notes receivable | Customer | 0 | ||||
Number of years for loans payable | 30 years | ||||
Number of customers representing more than ten percentage of accounts receivable | Customer | 0 | 0 | |||
Accounts receivable from OEM customers excess percentage | 10.00% | 10.00% | |||
Total cost of operating lease vehicles | $ 2,850,000,000 | $ 2,550,000,000 | |||
Accumulated depreciation related to leased vehicles | $ 406,000,000 | 458,000,000 | |||
Operating lease description | were accounted for as operating leases in accordance with ASC 840. Under ASC 840, to determine lease classification, we evaluated the lease terms to determine whether there was a transfer of ownership or bargain purchase option at the end of the lease, whether the lease term was greater than 75% of the useful life or whether the present value of the minimum lease payments exceeded 90% of the fair value at lease inception. As discussed in the Leases section above, | ||||
Minimum percentage of useful life for lease term | 75.00% | ||||
Percentage of minimum lease payment of fair value | 90.00% | ||||
Impairment of goodwill | $ 0 | 0 | 0 | ||
Gains (losses) from foreign currency transaction | 48,000,000 | 2,000,000 | (52,000,000) | ||
Assets | 34,309,000,000 | 29,740,000,000 | |||
Liabilities | $ 26,199,000,000 | $ 23,427,000,000 | |||
0.25% Convertible Senior Notes due in 2019 ("2019 Notes") [Member] | Recourse debt [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Interest Rate | 0.25% | 0.25% | |||
Maturity year | 2019 | ||||
1.25% Convertible Senior Notes due in 2021 ("2021 Notes") [Member] | Recourse debt [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Interest Rate | 1.25% | 1.25% | |||
Maturity year | 2021 | ||||
2.375% Convertible Senior Notes due in 2022 [Member] | Recourse debt [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Interest Rate | 2.375% | 2.375% | |||
Maturity year | 2022 | ||||
2.00% Convertible Senior Notes due in 2024 [Member] | Recourse debt [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Interest Rate | 2.00% | ||||
Maturity year | 2024 | ||||
5.50% Convertible Senior Notes due in 2022 [Member] | Recourse debt [Member] | Maxwell Technologies, Inc. [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Interest Rate | 5.50% | ||||
Maturity year | 2022 | ||||
Adoption of ASU 2016-02 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Right-of-use ("ROU") assets for operating leases | $ 1,286,000,000 | ||||
Lease liabilities for operating leases | 1,240,000,000 | ||||
De-recognition of build-to-suit lease assets | 1,620,000,000 | ||||
De-recognition of build-to-suit lease liabilities | 1,740,000,000 | ||||
Assets | 473,000,000 | ||||
Liabilities | 570,000,000 | ||||
Adoption of ASU 2016-02 [Member] | Build-to-suit Lease Arrangement [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Increase (decrease) in accumulated deficit and additional paid-in-capital | 97,000,000 | ||||
Adoption of ASU 2016-02 [Member] | Prepaid Expenses and Other Current Asset [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
New accounting pronouncement or change in accounting principle | 142,000,000 | ||||
Adoption of ASU 2016-02 [Member] | Other Liability [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
New accounting pronouncement or change in accounting principle | 70,000,000 | ||||
Adoption of ASU 2016-02 [Member] | Accumulated Deficit [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
New accounting pronouncement or change in accounting principle | $ 97,000,000 | ||||
Customer payments [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred revenue | $ 226,000,000 | $ 225,000,000 | |||
Customer payments [Member] | Energy Generation and Storage [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred revenue recognized in next 12 months | 5,000,000 | ||||
Deferred revenue recognized | 41,000,000 | 41,000,000 | |||
Deferred revenue | 156,000,000 | 149,000,000 | |||
Unbilled transaction price allocated to performance obligations, expected of more than one year | 103,000,000 | ||||
Rebates and Incentives [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred revenue | 36,000,000 | 37,000,000 | |||
Sales To Leasing Companies With Guarantee [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred revenue | 29,000,000 | 93,000,000 | |||
Leasing revenue recognized | 186,000,000 | 332,000,000 | |||
Resale value guarantee | 238,000,000 | 558,000,000 | |||
Net carrying amount of operating lease vehicles | $ 190,000,000 | 469,000,000 | |||
Gigafactory Nevada [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Incentive beginning period | Oct. 17, 2014 | ||||
Incentive ending period | Jun. 30, 2024 | ||||
Capital investments | $ 3,500,000,000 | ||||
Deferred lease revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred revenue | $ 532,000,000 | 393,000,000 | 221,000,000 | ||
Leasing revenue recognized | $ 218,000,000 | 110,000,000 | |||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Direct lease term | 48 months | ||||
Tax credit amount | $ 195,000,000 | 195,000,000 | |||
Maximum [Member] | Gigafactory Nevada [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Maximum eligible amount of transferable tax credits | $ 195,000,000 | ||||
Automotive Regulatory Credits [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue from sales | 594,000,000 | 419,000,000 | 360,000,000 | ||
Deferred revenue recognized | $ 140,000,000 | 0 | |||
Deferred revenue, recognition period | 12 months | ||||
Marketing, Promotional and Advertising Costs [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Marketing, promotional and advertising costs | $ 27,000,000 | 32,000,000 | 37,000,000 | ||
Vehicles [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Net carrying amount of operating lease vehicles | $ 83,000,000 | 212,000,000 | |||
Solar energy systems leased and to be leased [Member] | Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 30 years | ||||
Solar energy systems leased and to be leased [Member] | Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 1 year | ||||
Internal-use software [Member] | Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 10 years | ||||
Internal-use software [Member] | Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Solar Energy Systems [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Product warranty description | we also provide a warranty on the installation and components of the energy generation and storage systems we sell for periods typically between 10 to 25 years. | ||||
Operating Lease Vehicles [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Net carrying amount of operating lease vehicles | $ 2,447,000,000 | 2,090,000,000 | |||
Warranty costs incurred for operating lease vehicles collateralized debt arrangements | $ 20,000,000 | $ 22,000,000 | $ 36,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Deferred Revenue Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Deferred revenue on automotive sales with and without resale value guarantee— beginning of period | $ 883 | $ 476 |
Additions | 880 | 532 |
Net changes in liability for pre-existing contracts | 9 | (13) |
Revenue recognized | (300) | (112) |
Deferred revenue on automotive sales with and without resale value guarantee— end of period | $ 1,472 | $ 883 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Detail1) | Dec. 31, 2019 |
Customer payments [Member] | Energy Generation and Storage [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Deferred revenue, expected to recognize period | 28 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Disaggregation of Revenue by Major Source (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Leasing revenues | $ 869 | $ 883 | $ 1,107 | ||||||||
Total revenues | $ 7,384 | $ 6,303 | $ 6,350 | $ 4,541 | $ 7,226 | $ 6,824 | $ 4,002 | $ 3,409 | 24,578 | 21,461 | 11,759 |
Automotive Regulatory Credits [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenues from sales and services | 594 | 419 | 360 | ||||||||
Services and Other [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenues from sales and services | 2,226 | 1,391 | |||||||||
Sales and Services [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenues from sales and services | 23,178 | 20,079 | |||||||||
Automotive [Member] | Automotive Sales without Resale Value Guarantee [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenues from sales and services | 19,212 | 15,810 | |||||||||
Automotive [Member] | Automotive Sales with Resale Value Guarantee [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenues from sales and services | 146 | 1,403 | |||||||||
Automotive [Member] | Automotive Regulatory Credits [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenues from sales and services | 594 | 419 | |||||||||
Automotive [Member] | Automotive Leasing [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Leasing revenues | 869 | 883 | |||||||||
Energy Generation and Storage [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenues | 1,531 | 1,555 | $ 1,116 | ||||||||
Energy Generation and Storage [Member] | Energy Generation and Storage Sales [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenues from sales and services | 1,000 | 1,056 | |||||||||
Energy Generation and Storage [Member] | Energy Generation and Storage Leasing [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Leasing revenues | $ 531 | $ 499 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption of New Lease Standard (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Prepaid expenses and other current assets | $ 713 | $ 366 | |
Property, plant and equipment, net | 10,396 | 11,330 | |
Operating lease right-of-use assets | 1,218 | ||
Other assets | 808 | 572 | |
Liabilities | |||
Accrued liabilities and other | 2,905 | 2,094 | |
Current portion of long-term debt and finance leases | 1,785 | 2,568 | |
Long-term debt and finance leases, net of current portion | 11,634 | 9,404 | |
Other long-term liabilities | 2,655 | 2,710 | |
Equity | |||
Accumulated deficit | $ (6,083) | $ (5,318) | |
Adoption of ASU 2016-02 [Member] | |||
Assets | |||
Prepaid expenses and other current assets | $ 366 | ||
Property, plant and equipment, net | 9,713 | ||
Operating lease right-of-use assets | 1,286 | ||
Other assets | 431 | ||
Liabilities | |||
Accrued liabilities and other | 2,212 | ||
Current portion of long-term debt and finance leases | 2,568 | ||
Long-term debt and finance leases, net of current portion | 9,404 | ||
Other long-term liabilities | 2,023 | ||
Equity | |||
Accumulated deficit | (5,221) | ||
Adoption of ASU 2016-02 [Member] | Adjustments from Adoption of New Lease Standard [Member] | |||
Assets | |||
Property, plant and equipment, net | (1,617) | ||
Operating lease right-of-use assets | 1,286 | ||
Other assets | (141) | ||
Liabilities | |||
Accrued liabilities and other | 118 | ||
Other long-term liabilities | (687) | ||
Equity | |||
Accumulated deficit | $ 97 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Shares that were Excluded from Computation of Diluted Net Income (Loss) per Share of Common Stock (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based awards [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential common shares excluded from computation of net income (loss) per share | 10 | 10 | 10 |
Convertible senior notes [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential common shares excluded from computation of net income (loss) per share | 1 | 1 | 2 |
Warrants [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential common shares excluded from computation of net income (loss) per share | 1 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 6,268 | $ 3,686 | $ 3,368 | $ 3,393 |
Restricted cash, current portion | 246 | 193 | 155 | 106 |
Restricted cash, net of current portion | 269 | 398 | 442 | 268 |
Total as presented in the consolidated statements of cash flows | $ 6,783 | $ 4,277 | $ 3,965 | $ 3,767 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Estimated Useful Lives of Respective Assets (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | Solar energy systems leased and to be leased [Member] | |
Property Plant And Equipment [Line Items] | |
Solar energy systems in service | 30 years |
Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Initial direct costs related to customer solar energy system lease acquisition costs | 25 years |
Maximum [Member] | Solar energy systems leased and to be leased [Member] | |
Property Plant And Equipment [Line Items] | |
Solar energy systems in service | 35 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Related Assets (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | Machinery, equipment, vehicles and office furniture [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets (in years) | 2 years |
Minimum [Member] | Building and building improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets (in years) | 15 years |
Minimum [Member] | Computer equipment and software [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets (in years) | 3 years |
Maximum [Member] | Machinery, equipment, vehicles and office furniture [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets (in years) | 12 years |
Maximum [Member] | Building and building improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets (in years) | 30 years |
Maximum [Member] | Computer equipment and software [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets (in years) | 10 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Schedule of Accrued Warranty Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Standard Product Warranty Disclosure [Abstract] | |||
Accrued warranty—beginning of period | $ 748 | $ 402 | $ 267 |
Assumed warranty liability from acquisition | 5 | ||
Warranty costs incurred | (250) | (209) | (123) |
Net changes in liability for pre-existing warranties, including expirations and foreign exchange impact | 36 | (26) | 4 |
Additional warranty accrued from adoption of the new revenue standard | 37 | ||
Provision for warranty | 555 | 544 | 249 |
Accrued warranty—end of period | $ 1,089 | $ 748 | $ 402 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 198 | $ 68 | |
Maxwell Technologies, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | May 16, 2019 | ||
Business combination, common stock conversion basis | each issued and outstanding share of Maxwell common stock was converted into 0.0193 (the “Exchange Ratio”) shares of our common stock. | ||
Business combination, stock conversion ratio of shares | 0.0193% | ||
Purchase consideration | $ 207 | ||
Consideration transferred value of shares | 902,968 | ||
Acquisition share price | $ 229.49 | ||
Goodwill | $ 79 | ||
Net assets assumed | $ 128 | ||
Other Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Purchase consideration | $ 96 | ||
Purchase consideration paid in cash | 80 | ||
Business acquisitions, intangible assets | 36 | ||
Net assets assumed | 9 | ||
Other Acquisitions [Member] | Automotive Segment [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 51 | ||
Other Acquisitions [Member] | Purchased Technology [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated useful lives | 1 year | ||
Other Acquisitions [Member] | Purchased Technology [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated useful lives | 9 years |
Business Combinations - Schedul
Business Combinations - Schedule of Fair Values of the Assets Acquired and the Liabilities Assumed (Detail) - USD ($) $ in Millions | May 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities and equity assumed: | |||
Goodwill | $ 198 | $ 68 | |
Maxwell Technologies, Inc. [Member] | |||
Assets acquired: | |||
Cash and cash equivalents | $ 32 | ||
Accounts receivable | 24 | ||
Inventory | 32 | ||
Property, plant and equipment, net | 27 | ||
Operating lease right-of-use assets | 10 | ||
Intangible assets | 105 | ||
Prepaid expenses and other assets, current and non-current | 3 | ||
Total assets acquired | 233 | ||
Liabilities and equity assumed: | |||
Accounts payable | (10) | ||
Accrued liabilities and other | (28) | ||
Debt and finance leases, current and non-current | (44) | ||
Deferred revenue, current | (1) | ||
Other long-term liabilities | (14) | ||
Additional paid-in capital | (8) | ||
Total liabilities and equity assumed | (105) | ||
Net assets acquired | 128 | ||
Goodwill | 79 | ||
Total purchase price | $ 207 |
Business Combinations - Sched_2
Business Combinations - Schedule of Fair Value of the Identified Intangible Assets and their Useful Lives (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | $ 510 | $ 406 |
Maxwell Technologies, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | 105 | |
Developed technology [Member] | Maxwell Technologies, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, Fair Value | $ 102 | |
Useful Life (in years) | 9 years | |
Customer relations [Member] | Maxwell Technologies, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, Fair Value | $ 2 | |
Useful Life (in years) | 9 years | |
Trade names [Member] | Maxwell Technologies, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, Fair Value | $ 1 | |
Useful Life (in years) | 10 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Intangible Assets [Line Items] | |||
Increased to goodwill | $ 130,000,000 | ||
Goodwill | 198,000,000 | $ 68,000,000 | |
Accumulated impairment losses | 0 | 0 | |
Amortization expense | 44,000,000 | $ 66,000,000 | $ 40,000,000 |
IPR&D [Member] | |||
Acquired Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, impairment in restructuring and other expenses | $ 47,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Acquired Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | $ 445 | $ 346 |
Finite-lived intangible assets, Accumulated Amortization | (113) | (113) |
Finite-lived intangible assets, Other | 2 | 2 |
Finite-lived intangible assets, Net Carrying Amount | 334 | 235 |
Indefinite-lived intangible assets, Gross Carrying Amount | 65 | 60 |
Indefinite-lived intangible assets, Other | (60) | (13) |
Indefinite-lived intangible assets, Net Carrying Amount | 5 | 47 |
Intangible Assets, Gross Carrying Amount | 510 | 406 |
Intangible assets, Other | (58) | (11) |
Intangible Assets, Net Carrying Amount | 339 | 282 |
Gigafactory Nevada Water Rights [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Gross Carrying Amount | 5 | |
Indefinite-lived intangible assets, Net Carrying Amount | 5 | |
In-Process Research and Development (“IPR&D”) [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Gross Carrying Amount | 60 | 60 |
Indefinite-lived intangible assets, Other | (60) | (13) |
Indefinite-lived intangible assets, Net Carrying Amount | 47 | |
Developed Technology [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 291 | 152 |
Finite-lived intangible assets, Accumulated Amortization | (72) | (40) |
Finite-lived intangible assets, Other | 1 | 1 |
Finite-lived intangible assets, Net Carrying Amount | 220 | 113 |
Trade names [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 3 | 45 |
Finite-lived intangible assets, Accumulated Amortization | (1) | (44) |
Finite-lived intangible assets, Other | 1 | |
Finite-lived intangible assets, Net Carrying Amount | 3 | 1 |
Favorable Contracts and Leases, Net [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 113 | 113 |
Finite-lived intangible assets, Accumulated Amortization | (24) | (17) |
Finite-lived intangible assets, Net Carrying Amount | 89 | 96 |
Other [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 38 | 36 |
Finite-lived intangible assets, Accumulated Amortization | (16) | (12) |
Finite-lived intangible assets, Other | 1 | |
Finite-lived intangible assets, Net Carrying Amount | $ 22 | $ 25 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Total Future Amortization Expense for Finite-lived Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | $ 50 | |
2021 | 49 | |
2022 | 48 | |
2023 | 42 | |
2024 | 27 | |
Thereafter | 118 | |
Finite-lived intangible assets, Net Carrying Amount | $ 334 | $ 235 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | $ 1,606 | $ 1,824 |
Money market funds (Cash and cash equivalents & restricted cash) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets, Fair Value | 1,632 | 1,813 |
Interest Rate Swap Asset (Liability) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets, Fair Value | 1 | 12 |
Financial liabilities, Fair Value | (27) | (1) |
Level I [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 1,632 | 1,813 |
Level I [Member] | Money market funds (Cash and cash equivalents & restricted cash) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets, Fair Value | 1,632 | 1,813 |
Level II [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | (26) | 11 |
Level II [Member] | Interest Rate Swap Asset (Liability) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets, Fair Value | 1 | 12 |
Financial liabilities, Fair Value | $ (27) | $ (1) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Interest Rate Swaps Outstanding (Detail) - Interest Rate Swaps [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Aggregate Notional Amount | $ 821 | $ 800 | |
Gross Asset at Fair Value | 1 | 12 | |
Gross Liability at Fair Value | 27 | 1 | |
Gross gains | 11 | 22 | $ 7 |
Gross losses | $ 51 | $ 12 | $ 13 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Detail) - Recourse debt [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
1.25% Convertible Senior Notes due in 2021 ("2021 Notes") [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest Rate | 1.25% | |
Maturity Date | Mar. 31, 2021 | |
5.30% Senior Notes due in 2025 ("2025 Notes") [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest Rate | 5.30% | 5.30% |
Maturity Date | Aug. 31, 2025 | Aug. 31, 2025 |
2.375% Convertible Senior Notes due in 2022 ("2022 Notes") [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest Rate | 2.375% | |
Maturity Date | Mar. 31, 2022 | |
2.00% Convertible Senior Notes due in 2024 ("2024 Notes") [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest Rate | 2.00% | |
Maturity Date | May 31, 2024 | |
Zero Coupon Convertible Senior Notes due in 2020 ("2020 Notes") [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest Rate | 0.00% | 0.00% |
Maturity Date | Dec. 31, 2020 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Schedule of Estimated Fair Values and Carrying Values (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 10,402 | $ 8,411 |
Convertible Senior Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying Value | 3,686 | 3,661 |
Fair Value | 6,067 | 4,347 |
5.30% Senior Notes due in 2025 ("2025 Notes") [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying Value | 1,782 | 1,779 |
Fair Value | 1,748 | 1,575 |
Solar asset-backed notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying Value | 1,155 | 1,183 |
Fair Value | 1,211 | 1,207 |
Solar Loan-backed Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying Value | 175 | 203 |
Fair Value | $ 189 | $ 212 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Schedule of Estimated Fair Values and Carrying Values (Parenthetical) (Detail) - Recourse debt [Member] - 5.30% Senior Notes due in 2025 ("2025 Notes") [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest Rate | 5.30% | 5.30% |
Maturity Date | Aug. 31, 2025 | Aug. 31, 2025 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,428 | $ 932 |
Work in process | 362 | 297 |
Finished goods | 1,356 | 1,581 |
Service parts | 406 | 303 |
Total | $ 3,552 | $ 3,113 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory [Line Items] | |||
Inventory write-downs | $ 193 | $ 85 | $ 132 |
Cost of Revenues [Member] | |||
Inventory [Line Items] | |||
Inventory write-downs | $ 138 | $ 78 | $ 124 |
Solar Energy Systems, Net - Com
Solar Energy Systems, Net - Components of Solar Energy Systems, Net (Detail) - Solar Energy Systems [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Solar energy systems in service | $ 6,682 | $ 6,431 |
Initial direct costs related to customer solar energy system lease acquisition costs | 102 | 99 |
Solar energy systems, gross | 6,784 | 6,530 |
Less: accumulated depreciation and amortization | (723) | (496) |
Solar energy systems, gross, less accumulated depreciation and amortization | 6,061 | 6,034 |
Solar energy systems under construction | 18 | 68 |
Solar energy systems pending interconnection | 59 | 169 |
Solar energy systems, net | $ 6,138 | $ 6,271 |
Solar Energy Systems, Net - C_2
Solar Energy Systems, Net - Components of Solar Energy Systems, Net (Parenthetical) (Detail) - Solar Energy Systems [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance Leased Assets [Line Items] | |||
Depreciation and amortization expense | $ 227 | $ 276 | $ 213 |
Gross finance leased assets | 36 | 36 | |
Accumulated depreciation and amortization on finance leased assets | $ 6 | $ 4 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 14,130 | $ 14,029 |
Less: Accumulated depreciation | (3,734) | (2,699) |
Property, plant and equipment, net | 10,396 | 11,330 |
Machinery, equipment, vehicles and office furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,167 | 6,329 |
Tooling [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,493 | 1,398 |
Leasehold improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,087 | 961 |
Land and buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,024 | 4,047 |
Computer equipment, hardware and software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 595 | 487 |
Construction in progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 764 | $ 807 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, net | $ 10,396 | $ 11,330 | |
Interest expense capitalized | 31 | 55 | |
Depreciation expense | 1,370 | 1,110 | $ 769 |
Gross finance leased assets | 2,080 | 1,520 | |
Accumulated depreciation on property and equipment under finance leases | 483 | 232 | |
Incentives for making manufacturing equipment investments | 85 | ||
Incentives received in cash | 46 | ||
Incentives received in form of assets and services | 39 | ||
Build To Suit Arrangements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, net | 1,690 | ||
Production Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, net | 1,730 | 1,240 | |
Gigafactory Nevada [Member] | |||
Property Plant And Equipment [Line Items] | |||
Costs related to construction activities | $ 5,270 | $ 4,620 |
Accrued Liabilities and Other -
Accrued Liabilities and Other - Schedule of Accrued Liabilities and Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued purchases | $ 638 | $ 394 |
Payroll and related costs | 466 | 449 |
Taxes payable | 611 | 348 |
Accrued interest | 86 | 78 |
Financing obligation, current portion | 57 | 62 |
Accrued warranty, current portion | 344 | 201 |
Sales return reserve, current portion | 272 | 108 |
Build-to-suit lease liability, current portion | 82 | |
Operating lease right-of-use liabilities, current portion | 228 | |
Other current liabilities | 203 | 372 |
Total | $ 2,905 | $ 2,094 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other - Additional Information (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Payables And Accruals [Abstract] | |
Build-to-suit lease liability | $ 82 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-term Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Noncurrent [Abstract] | ||
Accrued warranty reserve | $ 745 | $ 547 |
Build-to-suit lease liability | 1,662 | |
Operating lease right-of-use liabilities | 956 | |
Deferred rent expense | 59 | |
Financing obligation | 37 | 50 |
Sales return reserve | 545 | 84 |
Other noncurrent liabilities | 372 | 308 |
Total other long-term liabilities | $ 2,655 | $ 2,710 |
Other Long-Term Liabilities - A
Other Long-Term Liabilities - Additional Information (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Other Liabilities Noncurrent [Abstract] | |
Build-to-suit lease liability | $ 1,662 |
Customer Deposits - Additional
Customer Deposits - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Customer Deposits Disclosure [Abstract] | ||
Customer deposits | $ 726 | $ 793 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 12,492 | $ 10,999 |
Net Carrying Value, Current | 1,399 | 2,222 |
Net Carrying Value, Long-Term | 10,402 | 8,411 |
Unused Committed Amount | 2,980 | 1,257 |
5.30% Senior Notes due in 2025 ("2025 Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Net Carrying Value, Long-Term | 1,782 | 1,779 |
Solar asset-backed notes [Member] | ||
Debt Instrument [Line Items] | ||
Net Carrying Value, Long-Term | 1,155 | 1,183 |
Solar Loan-backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Net Carrying Value, Long-Term | 175 | 203 |
Solar Renewable Energy Credit and other Loans [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | 89 | 27 |
Net Carrying Value, Current | 23 | 16 |
Net Carrying Value, Long-Term | 67 | 10 |
Unused Committed Amount | $ 6 | $ 18 |
Contractual Maturity Date, Start | 2020-03 | 2019-12 |
Contractual Maturity Date, End | 2022-06 | 2021-07 |
Solar Renewable Energy Credit and other Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 4.50% | 5.10% |
Solar Renewable Energy Credit and other Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 7.40% | 7.90% |
Recourse debt [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 7,898 | $ 7,388 |
Net Carrying Value, Current | 253 | 1,455 |
Net Carrying Value, Long-Term | 7,010 | 5,626 |
Unused Committed Amount | $ 499 | 231 |
Recourse debt [Member] | 0.25% Convertible Senior Notes due in 2019 ("2019 Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | 920 | |
Net Carrying Value, Current | $ 913 | |
Contractual Interest Rates | 0.25% | 0.25% |
Contractual Maturity Date | 2019-03 | |
Recourse debt [Member] | 1.25% Convertible Senior Notes due in 2021 ("2021 Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 1,380 | $ 1,380 |
Net Carrying Value, Long-Term | $ 1,304 | $ 1,244 |
Contractual Interest Rates | 1.25% | 1.25% |
Contractual Maturity Date | 2021-03 | 2021-03 |
Recourse debt [Member] | 2.375% Convertible Senior Notes due in 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 978 | $ 978 |
Net Carrying Value, Long-Term | $ 902 | $ 871 |
Contractual Interest Rates | 2.375% | 2.375% |
Contractual Maturity Date | 2022-03 | 2022-03 |
Recourse debt [Member] | 2.00% Convertible Senior Notes due in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 1,840 | |
Net Carrying Value, Long-Term | $ 1,383 | |
Contractual Interest Rates | 2.00% | |
Contractual Maturity Date | 2024-05 | |
Recourse debt [Member] | 5.30% Senior Notes due in 2025 ("2025 Notes") [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 1,800 | $ 1,800 |
Net Carrying Value, Long-Term | $ 1,782 | $ 1,779 |
Contractual Interest Rates | 5.30% | 5.30% |
Contractual Maturity Date | 2025-08 | 2025-08 |
Recourse debt [Member] | Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 1,727 | $ 1,540 |
Net Carrying Value, Current | 141 | |
Net Carrying Value, Long-Term | 1,586 | 1,540 |
Unused Committed Amount | $ 499 | $ 231 |
Debt instrument interest rate description | 1% plus LIBOR | |
Contractual Maturity Date | 2020-06 | |
Contractual Maturity Date, Start | 2020-06 | |
Contractual Maturity Date, End | 2023-07 | |
Recourse debt [Member] | Credit Agreement [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 2.70% | |
Recourse debt [Member] | Credit Agreement [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 4.80% | |
Recourse debt [Member] | 1.625% Convertible Senior Notes due in 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 566 | |
Net Carrying Value, Current | $ 541 | |
Contractual Interest Rates | 1.625% | |
Contractual Maturity Date | 2019-11 | |
Recourse debt [Member] | Zero-Coupon Convertible Senior Notes due in 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 103 | $ 103 |
Net Carrying Value, Current | $ 97 | |
Net Carrying Value, Long-Term | $ 92 | |
Contractual Interest Rates | 0.00% | 0.00% |
Contractual Maturity Date | 2020-12 | 2020-12 |
Recourse debt [Member] | Solar Bonds and other Loans [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 70 | |
Net Carrying Value, Current | 15 | |
Net Carrying Value, Long-Term | $ 53 | |
Contractual Maturity Date, Start | 2020-03 | |
Contractual Maturity Date, End | 2031-01 | |
Recourse debt [Member] | Solar Bonds and other Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 3.60% | |
Recourse debt [Member] | Solar Bonds and other Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 5.80% | |
Recourse debt [Member] | Vehicle, Solar Bonds and other Loans [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 101 | |
Net Carrying Value, Current | 1 | |
Net Carrying Value, Long-Term | $ 100 | |
Contractual Maturity Date, Start | 2019-01 | |
Contractual Maturity Date, End | 2031-01 | |
Recourse debt [Member] | Vehicle, Solar Bonds and other Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 1.80% | |
Recourse debt [Member] | Vehicle, Solar Bonds and other Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 7.60% | |
Non-recourse debt [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 4,594 | $ 3,611 |
Net Carrying Value, Current | 1,146 | 767 |
Net Carrying Value, Long-Term | 3,392 | 2,785 |
Unused Committed Amount | 2,481 | 1,026 |
Non-recourse debt [Member] | Warehouse Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | 167 | 92 |
Net Carrying Value, Current | 21 | 14 |
Net Carrying Value, Long-Term | 146 | 78 |
Unused Committed Amount | $ 933 | $ 1,008 |
Contractual Maturity Date | 2021-09 | 2020-09 |
Non-recourse debt [Member] | Warehouse Agreements [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 3.10% | 3.90% |
Non-recourse debt [Member] | Warehouse Agreements [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 3.60% | 4.20% |
Non-recourse debt [Member] | China Loan Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 741 | |
Net Carrying Value, Current | 444 | |
Net Carrying Value, Long-Term | 297 | |
Unused Committed Amount | $ 1,542 | |
Contractual Maturity Date, Start | 2020-09 | |
Contractual Maturity Date, End | 2024-12 | |
Non-recourse debt [Member] | China Loan Agreements [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 3.70% | |
Non-recourse debt [Member] | China Loan Agreements [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 4.00% | |
Non-recourse debt [Member] | Canada Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 40 | $ 73 |
Net Carrying Value, Current | 24 | 32 |
Net Carrying Value, Long-Term | $ 16 | $ 41 |
Contractual Maturity Date | 2022-11 | 2022-11 |
Non-recourse debt [Member] | Canada Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 4.20% | 3.60% |
Non-recourse debt [Member] | Canada Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 5.90% | 5.90% |
Non-recourse debt [Member] | Solar Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 161 | $ 350 |
Net Carrying Value, Current | 8 | 188 |
Net Carrying Value, Long-Term | $ 152 | $ 162 |
Contractual Interest Rates | 5.40% | |
Contractual Maturity Date | 2021-01 | |
Contractual Maturity Date, Start | 2019-01 | |
Contractual Maturity Date, End | 2021-01 | |
Non-recourse debt [Member] | Solar Term Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 6.00% | |
Non-recourse debt [Member] | Solar Term Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 6.10% | |
Non-recourse debt [Member] | Solar asset-backed notes [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 1,183 | $ 1,214 |
Net Carrying Value, Current | 32 | 28 |
Net Carrying Value, Long-Term | $ 1,123 | $ 1,155 |
Contractual Maturity Date, Start | 2024-09 | 2024-09 |
Contractual Maturity Date, End | 2048-02 | 2048-02 |
Non-recourse debt [Member] | Solar asset-backed notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 4.00% | 4.00% |
Non-recourse debt [Member] | Solar asset-backed notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 7.70% | 7.70% |
Non-recourse debt [Member] | Cash Equity Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 454 | $ 467 |
Net Carrying Value, Current | 10 | 11 |
Net Carrying Value, Long-Term | $ 430 | $ 442 |
Contractual Maturity Date, Start | 2033-07 | 2033-07 |
Contractual Maturity Date, End | 2035-01 | 2035-01 |
Non-recourse debt [Member] | Cash Equity Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 5.30% | 5.30% |
Non-recourse debt [Member] | Cash Equity Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 5.80% | 5.80% |
Non-recourse debt [Member] | Automotive Asset-backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 1,577 | $ 1,178 |
Net Carrying Value, Current | 573 | 468 |
Net Carrying Value, Long-Term | $ 997 | $ 704 |
Contractual Maturity Date, Start | 2020-02 | 2019-12 |
Contractual Maturity Date, End | 2023-05 | 2022-06 |
Non-recourse debt [Member] | Automotive Asset-backed Notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 2.00% | 2.30% |
Non-recourse debt [Member] | Automotive Asset-backed Notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 7.90% | 7.90% |
Non-recourse debt [Member] | Solar Loan-backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid Principal Balance | $ 182 | $ 210 |
Net Carrying Value, Current | 11 | 10 |
Net Carrying Value, Long-Term | $ 164 | $ 193 |
Contractual Maturity Date, Start | 2048-09 | 2048-09 |
Contractual Maturity Date, End | 2049-09 | 2049-09 |
Non-recourse debt [Member] | Solar Loan-backed Notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 4.80% | 4.80% |
Non-recourse debt [Member] | Solar Loan-backed Notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rates | 7.50% | 7.50% |
Debt - 2019 Notes, 2021 Notes,
Debt - 2019 Notes, 2021 Notes, Bond Hedges and Warrant Transactions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)d$ / sharesshares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Proceeds from issuance of warrants | $ 174,000,000 | $ 53,000,000 | |||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Payment for purchase of common stock | shares | 3,800,000 | ||||
Conversion price per share | $ / shares | $ 359.87 | ||||
Hedge transactions | $ 604,000,000 | ||||
Proceeds from issuance of warrants | 389,000,000 | ||||
Senior Notes [Member] | 0.25% Convertible Senior Notes due in 2019 ("2019 Notes") [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of convertible senior notes | $ 120,000,000 | $ 800,000,000 | |||
Interest Rate | 0.25% | ||||
Contractual Maturity Date | 2019-03 | ||||
Proceeds from convertible senior notes, net of underwriting discounts and issuance costs | $ 906,000,000 | ||||
Debt conversion, converted instrument, amount | $ 188,000,000 | ||||
Debt instrument, effective interest rate | 4.89% | ||||
Shares issued under warrants | shares | 2,600,000 | ||||
Exercise price of warrant | $ / shares | $ 512.66 | ||||
Repayment of aggregate principal amount | $ 920,000,000 | ||||
Senior Notes [Member] | 0.25% Convertible Senior Notes due in 2019 ("2019 Notes") [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Conversion price per share | $ / shares | $ 359.87 | ||||
Senior Notes [Member] | 0.25% Convertible Senior Notes due in 2019 ("2019 Notes") [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Conversion price per share | $ / shares | $ 512.66 | ||||
Senior Notes [Member] | 1.25% Convertible Senior Notes due in 2021 ("2021 Notes") [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of convertible senior notes | $ 180,000,000 | $ 1,200,000,000 | |||
Interest Rate | 1.25% | ||||
Contractual Maturity Date | 2021-03 | ||||
Proceeds from convertible senior notes, net of underwriting discounts and issuance costs | $ 1,360,000,000 | ||||
Debt conversion, converted instrument, amount | $ 369,000,000 | ||||
Debt instrument, effective interest rate | 5.96% | ||||
Shares issued under warrants | shares | 3,800,000 | ||||
Exercise price of warrant | $ / shares | $ 560.64 | ||||
Debt instrument convertible, if-converted value in excess of principal | $ 224,000,000 | ||||
Senior Notes [Member] | 1.25% Convertible Senior Notes due in 2021 ("2021 Notes") [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Conversion price per share | $ / shares | $ 359.87 | ||||
Senior Notes [Member] | 1.25% Convertible Senior Notes due in 2021 ("2021 Notes") [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Conversion price per share | $ / shares | $ 560.64 | ||||
Senior Notes [Member] | 0.25% and 1.25% Convertible Senior Notes and Bond Hedge and Warrant Transactions [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible principal amount | $ 1,000 | ||||
Shares issued upon conversion of each $1000 principal amount | shares | 2.7788 | ||||
Convertible notes, conversion price | $ / shares | $ 359.87 | ||||
Debt instrument convertible, percentage of conversion price | 130.00% | ||||
Product percentage of closing sale price of common stock | 98.00% | ||||
Percentage of repurchase price is equal to principal amount of convertible notes | 100.00% | ||||
Senior Notes [Member] | 0.25% and 1.25% Convertible Senior Notes and Bond Hedge and Warrant Transactions [Member] | One Hundred Thirty Percent Applicable Conversion Price [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument convertible consecutive trading days | d | 20 | ||||
Senior Notes [Member] | 0.25% and 1.25% Convertible Senior Notes and Bond Hedge and Warrant Transactions [Member] | One Hundred Thirty Percent Applicable Conversion Price [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument convertible trading days | d | 30 | ||||
Senior Notes [Member] | 0.25% and 1.25% Convertible Senior Notes and Bond Hedge and Warrant Transactions [Member] | Ninety Eight Percent Applicable Conversion Price [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument convertible consecutive trading days | d | 5 |
Debt - 2022 Notes, Bond Hedges
Debt - 2022 Notes, Bond Hedges and Warrant Transactions - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)d$ / sharesshares | Mar. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||
Proceeds from issuance of warrants | $ 174,000,000 | $ 53,000,000 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Payment for purchase of common stock | shares | 3,800,000 | |||
Common stock purchase price | $ / shares | $ 359.87 | |||
Hedge transactions | $ 604,000,000 | |||
Proceeds from issuance of warrants | $ 389,000,000 | |||
Senior Notes [Member] | 2.375% Convertible Senior Notes due in 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of convertible senior notes | $ 978,000,000 | |||
Interest Rate | 2.375% | |||
Contractual Maturity Date | 2022-03 | |||
Proceeds from convertible senior notes, net of underwriting discounts and issuance costs | $ 966,000,000 | |||
Convertible principal amount | $ 1,000 | |||
Convertible instrument, shares issued | shares | 3.0534 | |||
Convertible notes, conversion price | $ / shares | $ 327.50 | |||
Debt instrument convertible, percentage of conversion price | 130.00% | |||
Product percentage of closing sale price of common stock | 98.00% | |||
Percentage of repurchase price is equal to principal amount of convertible notes | 100.00% | |||
Debt conversion, converted instrument, amount | $ 146,000,000 | |||
Debt instrument, effective interest rate | 6.00% | |||
Payment for purchase of common stock | shares | 3,000,000 | |||
Common stock purchase price | $ / shares | $ 327.50 | |||
Hedge transactions | $ 204,000,000 | |||
Shares issued under warrants | shares | 3,000,000 | |||
Exercise price of warrant | $ / shares | $ 655 | |||
Proceeds from issuance of warrants | $ 53,000,000 | |||
Debt instrument convertible, if-converted value in excess of principal | $ 271,000,000 | |||
Senior Notes [Member] | 2.375% Convertible Senior Notes due in 2022 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion price per share | $ / shares | $ 327.50 | |||
Senior Notes [Member] | 2.375% Convertible Senior Notes due in 2022 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion price per share | $ / shares | $ 655 | |||
Senior Notes [Member] | 2.375% Convertible Senior Notes due in 2022 [Member] | One Hundred Thirty Percent Applicable Conversion Price [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible consecutive trading days | d | 20 | |||
Senior Notes [Member] | 2.375% Convertible Senior Notes due in 2022 [Member] | One Hundred Thirty Percent Applicable Conversion Price [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible trading days | d | 30 | |||
Senior Notes [Member] | 2.375% Convertible Senior Notes due in 2022 [Member] | Ninety Eight Percent Applicable Conversion Price [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible consecutive trading days | d | 5 |
Debt - 2024 Notes, Bond Hedges
Debt - 2024 Notes, Bond Hedges and Warrant Transactions - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
May 31, 2019USD ($)d$ / sharesshares | Mar. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||
Proceeds from issuances of warrants | $ 174,000,000 | $ 53,000,000 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Payment for purchase of common stock | shares | 3,800,000 | |||
Common stock purchase price | $ / shares | $ 359.87 | |||
Hedge transactions | $ 604,000,000 | |||
Proceeds from issuances of warrants | $ 389,000,000 | |||
Senior Notes [Member] | 2.00% Convertible Senior Notes due in 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of convertible senior notes | $ 1,840,000,000 | |||
Interest Rate | 2.00% | |||
Contractual Maturity Date | 2024-05 | |||
Proceeds from convertible senior notes, net of underwriting discounts and issuance costs | $ 1,820,000,000 | |||
Convertible principal amount | $ 1,000 | |||
Convertible instrument, shares issued | shares | 3.2276 | |||
Convertible notes, conversion price | $ / shares | $ 309.83 | |||
Debt instrument convertible, percentage of conversion price | 130.00% | |||
Product percentage of closing sale price of common stock | 98.00% | |||
Percentage of repurchase price is equal to principal amount of convertible notes | 100.00% | |||
Debt conversion, converted instrument, amount | $ 491,000,000 | |||
Debt instrument, effective interest rate | 8.68% | |||
Payment for purchase of common stock | shares | 5,900,000 | |||
Common stock purchase price | $ / shares | $ 309.83 | |||
Hedge transactions | $ 476,000,000 | |||
Shares issued under warrants | shares | 5,900,000 | |||
Exercise price of warrant | $ / shares | $ 607.50 | |||
Proceeds from issuances of warrants | $ 174,000,000 | |||
Debt instrument convertible, if-converted value in excess of principal | $ 644,000,000 | |||
Senior Notes [Member] | 2.00% Convertible Senior Notes due in 2024 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion price per share | $ / shares | $ 309.83 | |||
Senior Notes [Member] | 2.00% Convertible Senior Notes due in 2024 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion price per share | $ / shares | $ 607.50 | |||
Senior Notes [Member] | 2.00% Convertible Senior Notes due in 2024 [Member] | One Hundred Thirty Percent Applicable Conversion Price [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible consecutive trading days | d | 20 | |||
Senior Notes [Member] | 2.00% Convertible Senior Notes due in 2024 [Member] | One Hundred Thirty Percent Applicable Conversion Price [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible trading days | d | 30 | |||
Senior Notes [Member] | 2.00% Convertible Senior Notes due in 2024 [Member] | Ninety Eight Percent Applicable Conversion Price [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible consecutive trading days | d | 5 |
Debt - 2025 Notes - Additional
Debt - 2025 Notes - Additional Information (Detail) - Unsecured Debt [Member] - 5.30% Senior Notes due in 2025 ("2025 Notes") [Member] $ in Millions | 1 Months Ended |
Aug. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Principal amount of convertible senior notes | $ 1,800 |
Interest Rate | 5.30% |
Contractual Maturity Date | 2025-08 |
Proceeds from convertible senior notes, net of underwriting discounts and issuance costs | $ 1,770 |
Debt - Credit Agreement - Addit
Debt - Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - Revolving Credit Facility [Member] - USD ($) | 1 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||
Senior asset-based revolving credit agreement, total lender commitments | $ 2,425,000,000 | |
Senior asset-based revolving credit agreement, increase in total lender commitments | $ 500,000,000 | |
Commitments extended term | 2023-07 | |
Syndicate of Banks [Member] | Federal Funds Purchased [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, additional interest rate | 0.50% | |
Syndicate of Banks [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, additional interest rate | 1.00% | |
Syndicate of Banks [Member] | Undrawn amounts interest rate [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, additional interest rate | 0.25% |
Debt - 1.625% Convertible Senio
Debt - 1.625% Convertible Senior Notes due in 2019 - Additional Information (Detail) - Senior Notes [Member] - 1.625% Convertible Senior Notes due in 2019 [Member] - SolarCity [Member] - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2019 | Oct. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Principal amount of convertible senior notes | $ 566,000,000 | |||
Interest Rate | 1.625% | 1.625% | ||
Maturity Date | Nov. 1, 2019 | Nov. 1, 2019 | ||
Convertible principal amount | $ 1,000 | |||
Convertible instrument, shares issued | 1.3169 | |||
Convertible notes, conversion price | $ 759.36 | |||
Repayment of aggregate principal amount | $ 566,000,000 | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible instrument, shares issued | 1.7449 | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible notes, conversion price | $ 573.10 |
Debt - Zero-Coupon Convertible
Debt - Zero-Coupon Convertible Senior Notes due in 2020 - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)d$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Convertible senior notes issued to related parties | $ 3,000,000 | $ 3,000,000 | |
Zero-Coupon Convertible Senior Notes due in 2020 [Member] | SolarCity [Member] | |||
Debt Instrument [Line Items] | |||
Convertible senior notes issued to related parties | $ 13,000,000 | ||
Maturity Date | Dec. 1, 2020 | ||
Debt conversion aggregate principal amount | $ 1,000 | ||
Convertible instrument, shares issued | shares | 3.3333 | ||
Convertible notes, conversion price | $ / shares | $ 300 | ||
Debt instrument redeemed description | The convertible senior note holders may require us to repurchase their convertible senior notes for cash only under certain defined fundamental changes. On or after June 30, 2017, the convertible senior notes are redeemable by us in the event that the closing price of our common stock exceeds 200% of the conversion price for 45 consecutive trading days ending within three trading days of such redemption notice at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. | ||
Common stock price to conversion price, percentage | 200.00% | ||
Debt instrument convertible trading days | d | 45 | ||
Percentage of redemption price | 100.00% | ||
Debt instrument convertible, if-converted value in excess of principal | $ 41,000,000 | ||
Zero-Coupon Convertible Senior Notes due in 2020 [Member] | SolarCity [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Convertible instrument, shares issued | shares | 4.2308 | ||
Zero-Coupon Convertible Senior Notes due in 2020 [Member] | SolarCity [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Convertible notes, conversion price | $ / shares | $ 236.36 | ||
Zero-Coupon Convertible Senior Notes due in 2020 [Member] | SolarCity [Member] | Private Placement [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of convertible senior notes | $ 113,000,000 | ||
Interest Rate | 0.00% |
Debt - Solar Bonds and other Lo
Debt - Solar Bonds and other Loans - Additional Information (Detail) | Dec. 31, 2019 |
5.50% Convertible Senior Notes due in 2022 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Interest Rate | 5.50% |
Debt - Automotive Asset-backed
Debt - Automotive Asset-backed Notes - Additional Information (Detail) - Automotive Asset-backed Notes [Member] $ in Millions | 1 Months Ended |
Nov. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |
Debt principal issued | $ 861 |
Proceeds from issuance of secured debt | $ 857 |
Debt - Solar Asset-backed Notes
Debt - Solar Asset-backed Notes - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($) |
SolarCity [Member] | Non-recourse debt [Member] | Solar asset-backed notes [Member] | |
Debt Instrument [Line Items] | |
Collateral value of solar assets | $ 690 |
Debt - China Loan Agreements -
Debt - China Loan Agreements - Additional Information (Detail) - China Loan Agreements [Member] - CNY (¥) | 1 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Unsecured 12-Month Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured facility, maximum borrowing capacity | ¥ 5,000,000,000 | |
Secured Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured facility, maximum borrowing capacity | ¥ 9,000,000,000 | |
Secured Term Loan Facility [Member] | U.S. Dollar-denominated Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate description | (ii) for U.S. dollar-denominated loans, the sum of one-year LIBOR plus 1.3% | |
Unsecured Revolving Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured facility, maximum borrowing capacity | ¥ 2,250,000,000 | |
Unsecured Revolving Loan Facility [Member] | U.S. Dollar-denominated Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate description | (ii) for U.S. dollar-denominated loans, the sum of one-year LIBOR plus 0.8%. | |
Peoples Bank of China One-year Rate [Member] | Secured Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument percentage of interest rate on variable rate | 0.7625% | |
Peoples Bank of China One-year Rate [Member] | Unsecured Revolving Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument percentage of interest rate on variable rate | 0.4525% | |
LIBOR [Member] | Secured Term Loan Facility [Member] | U.S. Dollar-denominated Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument basis spread on variable rate | 1.30% | |
LIBOR [Member] | Unsecured Revolving Loan Facility [Member] | U.S. Dollar-denominated Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument basis spread on variable rate | 0.80% | |
Maximum [Member] | Peoples Bank of China One-year Rate [Member] | Unsecured 12-Month Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument percentage of annual interest rate | 90.00% |
Debt - Cash Equity Debt - Addit
Debt - Cash Equity Debt - Additional Information (Detail) $ in Millions | Dec. 31, 2016USD ($) |
SolarCity [Member] | Non-recourse debt [Member] | Cash Equity Debt [Member] | |
Debt Instrument [Line Items] | |
Debt principal issued | $ 502 |
Debt - Solar Loan-backed Notes
Debt - Solar Loan-backed Notes - Additional Information (Detail) - USD ($) $ in Millions | Jan. 31, 2017 | Jan. 31, 2016 |
SolarCity [Member] | Non-recourse debt [Member] | Interest Rate Class A | Solar Loan-backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal issued | $ 330 | $ 330 |
Debt - Warehouse Agreement - Ad
Debt - Warehouse Agreement - Additional Information (Detail) - Non-recourse debt [Member] - Warehouse Agreements [Member] - USD ($) $ in Millions | Aug. 16, 2018 | Nov. 30, 2019 | Aug. 31, 2019 |
Debt Instrument [Line Items] | |||
Maturity Date | Sep. 30, 2020 | Sep. 30, 2021 | |
Repayments of secured debt | $ 723 |
Debt - Solar Term Loans - Addit
Debt - Solar Term Loans - Additional Information (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Non-recourse debt [Member] | SolarCity Term Loans [Member] | |
Debt Instrument [Line Items] | |
Repayment of aggregate principal amount | $ 159 |
Debt - Solar Renewable Energy C
Debt - Solar Renewable Energy Credit and other Loans - Additional Information (Detail) | Dec. 31, 2019Subsidiary |
Solar Renewable Energy Credit and other Loans [Member] | |
Debt Instrument [Line Items] | |
Number of wholly owned subsidiaries received remaining cash distributions | 1 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Contractual interest coupon | $ 65 | $ 43 | $ 39 |
Amortization of debt issuance costs | 7 | 7 | 7 |
Amortization of debt discounts | 148 | 123 | 114 |
Total | $ 220 | $ 173 | $ 160 |
Debt - Pledged Assets - Additio
Debt - Pledged Assets - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
SolarCity [Member] | Non-recourse debt [Member] | ||
Debt Instrument [Line Items] | ||
Pledged or restricted cash, receivables, inventory, SRECs, solar energy systems and property and equipment as collateral | $ 5,720 | $ 5,230 |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Maturities of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2020 | $ 1,414 | |
2021 | 2,291 | |
2022 | 2,037 | |
2023 | 1,785 | |
2024 | 2,398 | |
Thereafter | 2,567 | |
Total | 12,492 | $ 10,999 |
Recourse debt [Member] | ||
Debt Instrument [Line Items] | ||
2020 | 259 | |
2021 | 1,382 | |
2022 | 1,024 | |
2023 | 1,586 | |
2024 | 1,840 | |
Thereafter | 1,807 | |
Total | 7,898 | 7,388 |
Non-recourse debt [Member] | ||
Debt Instrument [Line Items] | ||
2020 | 1,155 | |
2021 | 909 | |
2022 | 1,013 | |
2023 | 199 | |
2024 | 558 | |
Thereafter | 760 | |
Total | $ 4,594 | $ 3,611 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule Of Operating And Finance Leased Assets [Line Items] | |
Lessee, operating leases, existence of option to extend | true |
Lessee, operating leases, existence of option to terminate | true |
Lessee, finance lease, existence of option to extend | true |
Lessee, finance lease, existence of option to terminate | true |
Maximum [Member] | |
Schedule Of Operating And Finance Leased Assets [Line Items] | |
Lessee, operating lease, term | 10 years |
Lessee, finance lease, term | 10 years |
Leases - Schedule of Operating
Leases - Schedule of Operating and Financing Leases Presented in Balance Sheets (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Operating leases: | |
Operating lease right-of-use assets | $ 1,218 |
Accrued liabilities and other | $ 228 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Other long-term liabilities | $ 956 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Total operating lease liabilities | $ 1,184 |
Finance leases: | |
Total finance lease assets | 1,630 |
Current portion of long-term debt and finance leases | $ 386 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | tsla:LongTermDebtAndFinanceLeasesCurrent |
Long-term debt and finance leases, net of current portion | $ 1,232 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | tsla:LongTermDebtAndFinanceLeasesNoncurrent |
Total finance lease liabilities | $ 1,618 |
Solar Energy Systems [Member] | |
Finance leases: | |
Total finance lease assets | 30 |
Property, Plant and Equipment, Net [Member] | |
Finance leases: | |
Total finance lease assets | $ 1,600 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating leases: | |
Operating lease expense | $ 426 |
Finance leases: | |
Amortization of leased assets | 299 |
Interest on lease liabilities | 104 |
Total finance lease expense | 403 |
Total lease expense | $ 829 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating leases, weighted-average remaining lease term | 6 years 2 months 12 days |
Finance leases, weighted-average remaining lease term | 3 years 10 months 24 days |
Operating leases, weighted-average discount rate | 6.50% |
Finance leases, weighted-average discount rate | 6.50% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information related to Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflows from operating leases | $ 396 | ||
Operating cash outflows from finance leases (interest payments) | 104 | ||
Financing cash outflows from finance leases | 321 | $ 181 | $ 103 |
Leased assets obtained in exchange for finance lease liabilities | 616 | ||
Leased assets obtained in exchange for operating lease liabilities | $ 202 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating and Finance Lease Liabilities (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, 2020 | $ 296 |
Operating Leases, 2021 | 262 |
Operating Leases, 2022 | 210 |
Operating Leases, 2023 | 174 |
Operating Leases, 2024 | 146 |
Operating Leases, Thereafter | 372 |
Operating Leases, Total minimum lease payments | 1,460 |
Less: Interest | 276 |
Total operating lease liabilities | 1,184 |
Accrued liabilities and other | 228 |
Long-term portion of lease obligations | 956 |
Finance Leases, 2020 | 474 |
Finance Leases, 2021 | 478 |
Finance Leases, 2022 | 600 |
Finance Leases, 2023 | 224 |
Finance Leases, 2024 | 5 |
Finance Leases, Thereafter | 13 |
Total minimum lease payments, Finance Leases | 1,794 |
Less: Interest | 176 |
Total finance lease liabilities | 1,618 |
Less: Current portion, Finance Leases | 386 |
Long-term portion of lease obligations | $ 1,232 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases ASC 840 (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Operating Leases, 2019 | $ 276 |
Operating Leases, 2020 | 257 |
Operating Leases, 2021 | 230 |
Operating Leases, 2022 | 183 |
Operating Leases, 2023 | 158 |
Operating Leases, Thereafter | 524 |
Operating Leases, Total minimum lease payments | 1,628 |
Finance Leases, 2019 | 417 |
Finance Leases, 2020 | 503 |
Finance Leases, 2021 | 506 |
Finance Leases, 2022 | 24 |
Finance Leases, 2023 | 5 |
Finance Leases, Thereafter | 6 |
Total minimum lease payments, Finance Leases | 1,461 |
Less: Interest | 122 |
Present value of lease obligations | 1,339 |
Less: Current portion, Finance Leases | 346 |
Long-term portion of lease obligations | $ 993 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Receivables from Customers (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 644 |
2021 | 494 |
2022 | 317 |
2023 | 190 |
2024 | 191 |
Thereafter | 2,294 |
Total | $ 4,130 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments to be Received from Customers under Non-cancellable Operating Leases ASC 840 (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 502 |
2020 | 418 |
2021 | 271 |
2022 | 187 |
2023 | 189 |
Thereafter | 2,469 |
Total | $ 4,036 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018USD ($)Tranchesmilestoneshares | Dec. 31, 2014Tranchesshares | Aug. 31, 2012Tranchesshares | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)TranchesmilestoneVehicle$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Contractual term of stock options, in years | 10 years | ||||||
Aggregate intrinsic value of options exercised | $ 237,000,000 | $ 293,000,000 | $ 544,000,000 | ||||
Unrecognized compensation expense | $ 1,570,000,000 | ||||||
Weighted-average period of recognition of unrecognized compensation, in years | 2 years 10 months 28 days | ||||||
Stock-based compensation | $ 898,000,000 | $ 749,000,000 | $ 467,000,000 | ||||
Aggregate number of vehicle production | Vehicle | 300,000 | ||||||
Income tax benefit from stock option exercises | $ 0 | ||||||
Percentage of payroll deductions of employees eligible compensation | 15.00% | ||||||
Percentage of discount on purchase price of shares lower than fair market value | 85.00% | ||||||
Number of shares issued under ESPP | shares | 500,000 | 400,000 | 400,000 | ||||
Number of shares issued under ESPP, value | $ 40,000,000 | $ 109,000,000 | $ 71,000,000 | ||||
Employee Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for issuance under ESPP | shares | 7,000,000 | ||||||
Upon Completion of First Model X Production Vehicle [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Portion of stock options scheduled to vest upon successful completion of performance objectives | 25.00% | ||||||
Upon Achieving Aggregate Production of 100,000 Vehicles in Trailing 12-month Period [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Portion of stock options scheduled to vest upon successful completion of performance objectives | 25.00% | ||||||
Aggregate number of vehicle production | Vehicle | 100,000 | ||||||
Upon Completion of First Gen III Production Vehicle [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Portion of stock options scheduled to vest upon successful completion of performance objectives | 25.00% | ||||||
Annualized Gross Margin of Greater Than 30% for Any Three Year Period [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Portion of stock options scheduled to vest upon successful completion of performance objectives | 25.00% | ||||||
Gross margin | 30.00% | ||||||
Fourth Tranche [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate number of vehicle production | Vehicle | 100,000 | ||||||
Third Tranche [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Aggregate number of vehicle production | Vehicle | 200,000 | ||||||
2010 Equity Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of stock options grant | shares | 0 | ||||||
2019 Equity Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of stock options grant | shares | 1,473,000 | ||||||
Shares were reserved for issuance | shares | 11,000,000 | ||||||
RSUs [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted average grant date fair value | $ / shares | $ 282.74 | $ 316.46 | $ 308.71 | ||||
Aggregate fair value | $ 502,000,000 | $ 546,000,000 | $ 491,000,000 | ||||
RSUs [Member] | 2019 Equity Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted average grant date fair value | $ / shares | $ 282.74 | ||||||
2018 CEO Performance Award [Member] | Chief Executive Officer [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of stock options grant | shares | 20,264,042 | ||||||
Number of vesting tranches CEO Performance Award consists | Tranches | 12 | ||||||
Increase to market capitalization for each remaining milestone | $ 50,000,000,000 | ||||||
Number of operational milestones focused on revenue | milestone | 8 | ||||||
Number of operational milestones focused on adjusted EBITDA | milestone | 8 | ||||||
Award vesting description | Each of the 12 vesting tranches of the 2018 CEO Performance Award will vest upon certification by the Board of Directors that both (i) the market capitalization milestone for such tranche, which begins at $100 billion for the first tranche and increases by increments of $50 billion thereafter, and (ii) any one of the following eight operational milestones focused on revenue or eight operational milestones focused on Adjusted EBITDA have been met for the previous four consecutive fiscal quarters on an annualized basis. | ||||||
Number of operational milestones achieved | milestone | 2 | ||||||
Operational milestones based on total revenue | $ 20,000,000,000 | ||||||
Operational milestone based on adjusted EBITDA one | 1,500,000,000 | ||||||
Operational milestone based on adjusted EBITDA two | $ 3,000,000,000 | ||||||
Number of vesting tranches | Tranches | 0 | ||||||
Stock-based compensation | $ 175,000,000 | $ 296,000,000 | |||||
2018 CEO Performance Award [Member] | Chief Executive Officer [Member] | Operational Milestones Probable of Being Achieved [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Operational milestones based on total revenue | 35,000,000,000 | ||||||
Operational milestone based on adjusted EBITDA two | 3,000,000,000 | ||||||
Unrecognized compensation expense | $ 527,000,000 | ||||||
Weighted-average period of recognition of unrecognized compensation, in years | 2 years 8 months 19 days | ||||||
2018 CEO Performance Award [Member] | Chief Executive Officer [Member] | Operational Milestones Not Considered Probable Achievement [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized compensation expense | $ 1,290,000,000 | ||||||
2018 CEO Performance Award [Member] | Chief Executive Officer [Member] | First Tranche Milestone [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Market capitalization | $ 100,000,000,000 | ||||||
2014 Performance-based Stock Option Grants [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of stock options grant | shares | 1,073,000 | ||||||
Number of vesting tranches | Tranches | 4 | ||||||
Stock-based compensation | 0 | $ 0 | 7,000,000 | ||||
2014 Performance-based Stock Option Grants [Member] | Performance Condition Not Considered Probable Achievement [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized compensation expense | 5,000,000 | ||||||
2012 CEO Performance Award [Member] | Chief Executive Officer [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of stock options grant | shares | 5,274,901 | ||||||
Number of vesting tranches CEO Performance Award consists | Tranches | 10 | ||||||
Market capitalization | 4,000,000,000 | ||||||
Stock-based compensation | 0 | $ 5,000,000 | |||||
Initial market capitalization | 3,200,000,000 | ||||||
2012 CEO Performance Award [Member] | Chief Executive Officer [Member] | Performance Condition Not Considered Probable Achievement [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized compensation expense | $ 6,000,000 | ||||||
Maximum [Member] | Stock Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period, in years | 4 years | ||||||
Maximum [Member] | RSUs [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period, in years | 4 years |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Stock Option and RSU Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value, Granted | $ 282.74 | $ 316.46 | $ 308.71 |
2019 Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Options, Beginning Balance | 31,208,000 | ||
Number of Options, Granted | 1,473,000 | ||
Number of Options Exercised or released | (1,441,000) | ||
Number of Options, Cancelled | (1,245,000) | ||
Number of Options, Ending Balance | 29,995,000 | 31,208,000 | |
Number of Options, Vested and expected to vest | 15,860,000 | ||
Number of Options, Exercisable and vested | 7,025,000 | ||
Weighted Average Exercise Price, Beginning Balance | $ 273.40 | ||
Weighted Average Exercise Price, Granted | 265.26 | ||
Weighted Average Exercise Price, Exercised or released | 106.68 | ||
Weighted Average Exercise Price, Cancelled | 310.57 | ||
Weighted Average Exercise Price, Ending Balance | 279.49 | $ 273.40 | |
Weighted Average Exercise Price, Vested and expected to vest | 228.29 | ||
Weighted Average Exercise Price, Exercisable and vested | $ 94.07 | ||
Weighted Average Remaining Contractual Life (Years), Balance | 6 years 10 months 20 days | ||
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest | 6 years 18 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable and vested | 3 years 4 months 20 days | ||
Aggregate Intrinsic Value, Balance | $ 4,170 | ||
Aggregate Intrinsic Value, Vested and expected to vest | 3,020 | ||
Aggregate Intrinsic Value, Exercisable and vested | $ 2,280 | ||
2019 Equity Incentive Plan [Member] | Restricted stock units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of RSUs, Beginning Balance | 4,659,000 | ||
Number of RSUs, Granted | 3,752,000 | ||
Number of RSUs, Exercised or released | (1,949,000) | ||
Number of RSUs, Cancelled | (1,656,000) | ||
Number of RSUs, Ending Balance | 4,806,000 | 4,659,000 | |
Number of RSUs, Vested and expected to vest | 4,804,000 | ||
Weighted Average Grant Date Fair Value, Beginning Balance | $ 294.63 | ||
Weighted Average Grant Date Fair Value, Granted | 282.74 | ||
Weighted Average Grant Date Fair Value, Exercised or released | 277.13 | ||
Weighted Average Grant Date Fair Value, Cancelled | 295.05 | ||
Weighted Average Grant Date Fair Value, Ending Balance | 291.06 | $ 294.63 | |
Weighted Average Grand Date Fair Value, Vested and Expected to Vest | $ 291.05 |
Equity Incentive Plans - Schedu
Equity Incentive Plans - Schedule of Fair Value of Stock Option Award and ESPP on Grant Date (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.40% | 2.50% | 1.80% |
Expected term (in years) | 4 years 6 months | 4 years 8 months 12 days | 5 years 1 month 6 days |
Expected volatility | 48.00% | 42.00% | 42.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Grant-date fair value per share | $ 111.59 | $ 121.92 | $ 122.25 |
Employee stock purchase plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.20% | 2.00% | 1.10% |
Expected term (in years) | 6 months | 6 months | 6 months |
Expected volatility | 53.00% | 43.00% | 35.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Grant-date fair value per share | $ 78.25 | $ 84.37 | $ 75.05 |
Equity Incentive Plans - Summ_2
Equity Incentive Plans - Summary of Operational Milestone Based on Revenue or Adjusted EBITDA (Detail) - Chief Executive Officer [Member] - 2018 CEO Performance Award [Member] $ in Billions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total annualized revenue of operational milestone, one | $ 20 |
Total annualized revenue of operational milestone, two | 35 |
Total annualized revenue of operational milestone, three | 55 |
Total annualized revenue of operational milestone, four | 75 |
Total annualized revenue of operational milestone, five | 100 |
Total annualized revenue of operational milestone, six | 125 |
Total annualized revenue of operational milestone, seven | 150 |
Total annualized revenue of operational milestone, eight | 175 |
Annualized Adjusted EBITDA of operational milestone, one | 1.5 |
Annualized Adjusted EBITDA of operational milestone, two | 3 |
Annualized Adjusted EBITDA of operational milestone, three | 4.5 |
Annualized Adjusted EBITDA of operational milestone, four | 6 |
Annualized Adjusted EBITDA of operational milestone, five | 8 |
Annualized Adjusted EBITDA of operational milestone, six | 10 |
Annualized Adjusted EBITDA of operational milestone, seven | 12 |
Annualized Adjusted EBITDA of operational milestone, eight | $ 14 |
Equity Incentive Plans - Summ_3
Equity Incentive Plans - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 898 | $ 749 | $ 467 |
Cost of revenues [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 128 | 109 | 64 |
Research and development [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 285 | 261 | 218 |
Selling, general and administrative [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 482 | 375 | $ 185 |
Restructuring and other [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 3 | $ 4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Provision for income taxes | $ 110,000,000 | $ 58,000,000 | $ 32,000,000 |
Corporate tax rate | 21.00% | 21.00% | 35.00% |
Deferred Tax Assets Valuation Allowance | $ 1,956,000,000 | $ 1,806,000,000 | |
Deferred tax assets, net | 1,454,000,000 | 910,000,000 | |
Research and development credits | 486,000,000 | 377,000,000 | |
Deferred tax liability | 0 | ||
Unrecognized tax benefits, that would not affect effective tax rate | $ 247,000,000 | ||
IRS [Member] | Minimum [Member] | |||
Income Taxes [Line Items] | |||
Income tax examination, years | 2015 | ||
IRS [Member] | Maximum [Member] | |||
Income Taxes [Line Items] | |||
Income tax examination, years | 2016 | ||
Foreign jurisdictions [Member] | |||
Income Taxes [Line Items] | |||
Deferred tax assets, net | $ 151,000,000 | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry-forwards | $ 7,510,000,000 | ||
Operating loss carry-forwards beginning to expire in the year | Dec. 31, 2024 | ||
Research and development credits | $ 320,000,000 | ||
Research and development tax credits, federal carry-forwards expiration date | 2024 | ||
General business tax credit | $ 125,000,000 | ||
General business tax credits, beginning to expire in the year | 2033 | ||
Federal [Member] | Minimum [Member] | |||
Income Taxes [Line Items] | |||
Income tax examination, years | 2004 | ||
Federal [Member] | Maximum [Member] | |||
Income Taxes [Line Items] | |||
Income tax examination, years | 2018 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry-forwards | $ 6,160,000,000 | ||
Operating loss carry-forwards beginning to expire in the year | Dec. 31, 2028 | ||
Research and development credits | $ 284,000,000 | ||
California | Minimum [Member] | |||
Income Taxes [Line Items] | |||
Income tax examination, years | 2004 | ||
California | Maximum [Member] | |||
Income Taxes [Line Items] | |||
Income tax examination, years | 2018 | ||
U.S. and foreign jurisdictions [Member] | Minimum [Member] | |||
Income Taxes [Line Items] | |||
Income tax examination, years | 2008 | ||
U.S. and foreign jurisdictions [Member] | Maximum [Member] | |||
Income Taxes [Line Items] | |||
Income tax examination, years | 2018 | ||
SolarCity [Member] | |||
Income Taxes [Line Items] | |||
Increase (Decrease) in valuation on deferred taxes | $ 150,000,000 | $ (38,000,000) | $ 821,000,000 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 287 | $ 412 | $ 993 |
Noncontrolling interest and redeemable noncontrolling interest | (87) | 87 | 279 |
Foreign | 465 | 506 | 937 |
Loss before income taxes | $ 665 | $ 1,005 | $ 2,209 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal, Current | $ (1) | $ (10) | |
State, Current | $ 5 | 3 | 2 |
Foreign, Current | 86 | 24 | 43 |
Total current | 91 | 26 | 35 |
Deferred: | |||
Federal, Deferred | (4) | ||
Foreign, Deferred | 23 | 32 | (3) |
Total deferred | 19 | 32 | (3) |
Provision for income taxes | $ 110 | $ 58 | $ 32 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carry-forwards | $ 1,846 | $ 1,760 |
Research and development credits | 486 | 377 |
Other tax credits | 126 | 128 |
Deferred revenue | 301 | 156 |
Inventory and warranty reserves | 243 | 165 |
Stock-based compensation | 102 | 102 |
Operating lease right-of-use liabilities | 290 | |
Accruals and others | 16 | 28 |
Total deferred tax assets | 3,410 | 2,716 |
Valuation allowance | (1,956) | (1,806) |
Deferred tax assets, net of valuation allowance | 1,454 | 910 |
Deferred tax liabilities: | ||
Depreciation and amortization | (1,185) | (861) |
Investment in certain financing funds | (17) | (33) |
Operating lease right-of-use assets | (263) | |
Other | (24) | (24) |
Total deferred tax liabilities | (1,489) | (918) |
Deferred tax liabilities, net of valuation allowance and deferred tax assets | $ (35) | $ (8) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Taxes at Federal Statutory Rate to Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | $ (139) | $ (211) | $ (773) |
State tax, net of federal benefit | 5 | 3 | 2 |
Nondeductible expenses | 94 | 65 | 30 |
Excess tax benefits related to stock based compensation | (7) | (44) | (1,013) |
Foreign income rate differential | 189 | 161 | 365 |
U.S. tax credits | (107) | (80) | (110) |
Noncontrolling interests and redeemable noncontrolling interests adjustment | (29) | 32 | 66 |
Effect of U.S. tax law change | 723 | ||
Bargain in purchase gain | 20 | ||
Convertible debt | (4) | ||
Unrecognized tax benefits | 17 | 1 | 3 |
Change in valuation allowance | 91 | 131 | 719 |
Provision for income taxes | $ 110 | $ 58 | $ 32 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 253 | $ 199 | $ 204 |
Decreases in balances related to prior year tax positions | (39) | (6) | (31) |
Increases in balances related to current year tax positions | 59 | 60 | 84 |
Changes in balances related to effect of U.S. tax law change | (58) | ||
Unrecognized tax benefits, ending balance | $ 273 | $ 253 | $ 199 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ¥ in Millions, $ in Millions | Oct. 16, 2018USD ($)Director | Oct. 05, 2016Plaintiff | Dec. 31, 2019USD ($)$ / yr | Dec. 31, 2019CNY (¥)$ / yr |
Commitments And Contingencies [Line Items] | ||||
Civil penalties amount payable | $ 20 | |||
Number of independent directors to be appointed | Director | 1 | |||
Number of additional independent directors to be appointed | Director | 2 | |||
Letters Of Credit Outstanding Amount | $ 282 | |||
Lawsuit in the Court of Chancery of the State of Delaware by purported stockholders of Tesla challenging SolarCity Acquisition [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Number of lawsuits filed | Plaintiff | 7 | |||
Shanghai, China [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Lessee, operating lease, term | 50 years | 50 years | ||
Capital expenditures | ¥ | ¥ 14,080 | |||
Annual tax revenues to be generated end of 2023 | ¥ | ¥ 2,230 | |||
Maximum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Initial direct costs related to customer solar energy system lease acquisition costs | 25 years | 25 years | ||
Lessee, operating lease, term | 10 years | 10 years | ||
Minimum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Independent director serving period | 3 years | |||
Build-to-suit Lease Arrangement [Member] | SUNY Foundation [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Acquisition of manufacturing equipment | $ 275 | |||
Additional specified scope costs | $ 125 | |||
Initial direct costs related to customer solar energy system lease acquisition costs | 10 years | 10 years | ||
Operating lease, option to renew, amount per year | $ / yr | 2 | 2 | ||
Lease arrangement, amount required to spend or incur | $ 5,000 | |||
Contractual obligation | 41 | |||
Build-to-suit Lease Arrangement [Member] | SUNY Foundation [Member] | Maximum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Cost of revenues | $ 350 | |||
Type of Cost, Good or Service [Extensible List] | us-gaap:ConstructionMember |
Variable Interest Entity Arra_3
Variable Interest Entity Arrangements - Carrying Values of Assets and Liabilities of Subsidiary in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||||
Cash and cash equivalents | $ 6,268 | $ 3,686 | $ 3,368 | $ 3,393 |
Restricted cash | 246 | 193 | 155 | 106 |
Accounts receivable, net | 1,324 | 949 | ||
Prepaid expenses and other current assets | 713 | 366 | ||
Total current assets | 12,103 | 8,307 | ||
Non-current assets | ||||
Restricted cash, net of current portion | 269 | 398 | $ 442 | $ 268 |
Other assets | 808 | 572 | ||
Total assets | 34,309 | 29,740 | ||
Current liabilities | ||||
Accrued liabilities and other | 2,905 | 2,094 | ||
Deferred revenue | 1,163 | 630 | ||
Customer deposits | 726 | 793 | ||
Current portion of long-term debt and finance leases | 1,785 | 2,568 | ||
Total current liabilities | 10,667 | 9,993 | ||
Deferred revenue, net of current portion | 1,207 | 991 | ||
Long-term debt and finance leases, net of current portion | 11,634 | 9,404 | ||
Other long-term liabilities | 2,655 | 2,710 | ||
Total liabilities | 26,199 | 23,427 | ||
Operating Lease Vehicles [Member] | ||||
Non-current assets | ||||
Operating lease net | 2,447 | 2,090 | ||
Variable Interest Entities (“VIEs”) [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 106 | 75 | ||
Restricted cash | 90 | 131 | ||
Accounts receivable, net | 27 | 19 | ||
Prepaid expenses and other current assets | 10 | 10 | ||
Total current assets | 233 | 235 | ||
Non-current assets | ||||
Restricted cash, net of current portion | 69 | 65 | ||
Other assets | 87 | 56 | ||
Total assets | 6,602 | 5,628 | ||
Current liabilities | ||||
Accrued liabilities and other | 80 | 133 | ||
Deferred revenue | 78 | 21 | ||
Customer deposits | 9 | |||
Current portion of long-term debt and finance leases | 608 | 663 | ||
Total current liabilities | 775 | 817 | ||
Deferred revenue, net of current portion | 264 | 178 | ||
Long-term debt and finance leases, net of current portion | 1,516 | 1,238 | ||
Other long-term liabilities | 22 | 26 | ||
Total liabilities | 2,577 | 2,259 | ||
Variable Interest Entities (“VIEs”) [Member] | Operating Lease Vehicles [Member] | ||||
Non-current assets | ||||
Operating lease net | 1,183 | 155 | ||
Variable Interest Entities (“VIEs”) [Member] | Solar Energy Systems [Member] | ||||
Non-current assets | ||||
Operating lease net | $ 5,030 | $ 5,117 |
Lease Pass-Through Financing _3
Lease Pass-Through Financing Obligation - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)Arrangement | Dec. 31, 2018USD ($) | |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Number of lease pass-through fund arrangements | Arrangement | 8 | |
Cost of lease | $ 2,850 | $ 2,550 |
Accumulated depreciation on lease | $ 406 | 458 |
Capital lease obligation | 1,339 | |
Current portion of capital lease obligation | 346 | |
Maximum [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Initial lease term | 25 years | |
Solar Energy Systems Under Lease Pass-through Fund Arrangements [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Cost of lease | $ 1,050 | 1,050 |
Accumulated depreciation on lease | 101 | 66 |
Capital lease obligation | 94 | 112 |
Current portion of capital lease obligation | $ 57 | $ 62 |
Solar Energy Systems Under Lease Pass-through Fund Arrangements [Member] | Minimum [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Initial lease term | 10 years | |
Solar Energy Systems Under Lease Pass-through Fund Arrangements [Member] | Maximum [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Initial lease term | 25 years |
Lease Pass-Through Financing _4
Lease Pass-Through Financing Obligation - Schedule of Future Minimum Lease Payments to be Received for Operating Leases (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Lessor Lease Description [Line Items] | |
2020 | $ 644 |
2021 | 494 |
2022 | 317 |
2023 | 190 |
2024 | 191 |
Thereafter | 2,294 |
Total | 4,130 |
SolarCity [Member] | |
Lessor Lease Description [Line Items] | |
2020 | 42 |
2021 | 41 |
2022 | 33 |
2023 | 26 |
2024 | 18 |
Thereafter | 450 |
Total | $ 610 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Contribution of employee compensation (in percent) | 100.00% | ||
Contributions to Retirement Plan | $ 0 | $ 0 | $ 0 |
Defined Contribution Plan, Sponsor Location [Extensible List] | country:US | country:US | country:US |
Defined Contribution Plan, Tax Status [Extensible List] | us-gaap:QualifiedPlanMember | us-gaap:QualifiedPlanMember | us-gaap:QualifiedPlanMember |
Related Party Transactions - Su
Related Party Transactions - Summary of Related Party Transactions (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Convertible senior notes due to related parties | $ 3 | $ 3 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Apr. 26, 2017 | May 31, 2019 | Nov. 30, 2018 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2017 |
Related Party Transaction [Line Items] | |||||||
Unpaid principal balance of convertible senior note due to related parties | $ 3 | $ 3 | |||||
Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock shares issued | 102,880 | 95,420 | |||||
Issuance of common stock public offering price | $ 25 | $ 25 | |||||
Chief Executive Officer [Member] | Private Placement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock shares issued | 56,915 | ||||||
Issuance of common stock public offering price | $ 20 | ||||||
Chief Executive Officer [Member] | Zero-Coupon Convertible Senior Notes due in 2020 [Member] | Recourse debt [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Principal amount of convertible senior notes | $ 10 | ||||||
Convertible instrument, shares issued | 33,333 | ||||||
Conversion feature of Convertible Senior Notes | $ 10 |
Segment Reporting and Informa_3
Segment Reporting and Information about Geographic Areas - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 2 |
Number of reportable segment | 2 |
Segment Reporting and Informa_4
Segment Reporting and Information about Geographic Areas - Schedule of Total Revenues and Gross Profit by Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 7,384 | $ 6,303 | $ 6,350 | $ 4,541 | $ 7,226 | $ 6,824 | $ 4,002 | $ 3,409 | $ 24,578 | $ 21,461 | $ 11,759 |
Gross profit | $ 1,391 | $ 1,191 | $ 921 | $ 566 | $ 1,443 | $ 1,524 | $ 619 | $ 456 | 4,069 | 4,042 | 2,223 |
Automotive Segment [Member] | |||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 23,047 | 19,906 | 10,643 | ||||||||
Gross profit | 3,879 | 3,852 | 1,981 | ||||||||
Energy Generation and Storage [Member] | |||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 1,531 | 1,555 | 1,116 | ||||||||
Gross profit | $ 190 | $ 190 | $ 242 |
Segment Reporting and Informa_5
Segment Reporting and Information about Geographic Areas - Schedule of Revenues by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 7,384 | $ 6,303 | $ 6,350 | $ 4,541 | $ 7,226 | $ 6,824 | $ 4,002 | $ 3,409 | $ 24,578 | $ 21,461 | $ 11,759 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 12,653 | 14,872 | 6,221 | ||||||||
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 2,979 | 1,757 | 2,027 | ||||||||
Netherlands [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,590 | 965 | 331 | ||||||||
Norway [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,201 | 813 | 823 | ||||||||
Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 6,155 | $ 3,054 | $ 2,357 |
Segment Reporting and Informa_6
Segment Reporting and Information about Geographic Areas - Schedule of Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived Assets | $ 16,534 | $ 17,601 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived Assets | 15,644 | 16,741 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived Assets | $ 890 | $ 860 |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Employee termination expenses and losses | $ 50 | $ 37 |
Loss incurred for closing certain facilities | 37 | |
Employee termination cash expenses paid | 27 | |
Expenses from restructuring energy generation and storage segment | 55 | |
Impairment loss | 13 | |
Settlement and legal expenses recognized | $ 30 | |
IPR&D [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Indefinite-lived intangible assets, impairment | 47 | |
IPR&D [Member] | Energy Generation and Storage [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Indefinite-lived intangible assets, impairment | 47 | |
Impairment on related equipment | $ 15 |
Quarterly Results of Operatio_3
Quarterly Results of Operations - Schedule of Selected Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 7,384 | $ 6,303 | $ 6,350 | $ 4,541 | $ 7,226 | $ 6,824 | $ 4,002 | $ 3,409 | $ 24,578 | $ 21,461 | $ 11,759 |
Gross profit | 1,391 | 1,191 | 921 | 566 | 1,443 | 1,524 | 619 | 456 | 4,069 | 4,042 | 2,223 |
Net (loss) income attributable to common stockholders | $ 105 | $ 143 | $ (408) | $ (702) | $ 140 | $ 311 | $ (718) | $ (709) | $ (862) | $ (976) | $ (1,962) |
Net (loss) income per share of common stock attributable to common stockholders, basic | $ 0.58 | $ 0.80 | $ (2.31) | $ (4.10) | $ 0.81 | $ 1.82 | $ (4.22) | $ (4.19) | |||
Net (loss) income per share of common stock attributable to common stockholders, diluted | $ 0.56 | $ 0.78 | $ (2.31) | $ (4.10) | $ 0.78 | $ 1.75 | $ (4.22) | $ (4.19) |