Cash flow in operating activities increased from 2018 through 2020 by about 3,845,000 dollars. The trend indicates an increase in the sales of eco-vehicles as more people become environmental-conscious due to the growing risk of climate change. Growth in this line also indicates the rise in electric cars’ reliability due to the increased innovation in the area.
Tesla’s cash flow in investing undertakings is an outflow for the three years, 2018 through 2020. In 2019, the figure decreased by $901,000, indicating a reduction in the purchase of property (FORM 10-K; Tesla, Inc., 2021). The cash flow in investing section depicts the impact of purchasing plants, equipment, and machinery. Registering negative figures all through shows Tesla’s continuous venture in machinery since the firm is young and rapidly growing. This type of investment cash flow, thus, implies the organization’s active holding for growth.
Tesla’s cash flow in financing events has been inflow for three years. A positive financial cash flow implies that the business makes fewer reimbursements and dividend payments while focusing more on raising funds for investment. Tesla’s positive cash flow from financing activities, coupled with the productive cash flow from operations indicates the company’s endeavor and focus on growth by taking loans and accumulating money.
Reference
FORM 10-K; Tesla, Inc. (2021).