Case: Tesla Inc. (formerly
Tesla Motors)was named after the
Serbian-American electrical engineer and
physicist Nikola Tesla is an American company that specializes in
electric automotives,
energy storage and
solar panel manufacturing Founded in 2003, the company specializes in
electric cars,
lithium-ion battery energy storage, and residential
photovoltaic panels through the subsidiary company
SolarCity. The additional products Tesla sells include the
Tesla Powerwall and
Powerpack batteries,
solar panels and
solar roof tiles. Listed on NASDAQ index, at the current share price of $ 333.97 its’ market capitalisation is $ 56.13BN.
CEO Elon Musk said that he envisions Tesla as a technology company and independent automakerwith the ultimate goal ofoffering electric cars at affordable prices to consumers.
Required: - Each student is required to analyse the financial statements of Tesla which are provided on loop, and use the results of their analysis to conduct an appraisal of this company. Your analysis and conclusions should be submitted in a written report of @1200 words.
- Subject to final confirmationStudents may choose a pair group and each pair will present the results and conclusions of their appraisal of Tesla in a presentation to class, using powerpoint slides. Presentations should be @5 – 10 minutes max.
Marks:This assignment is worth
25% of marks for
AC554P; of which,
19% will be for theIndividual Reportand
6% for the Group Presentation. Deadline: Financial Reports must be submitted to loop by 5.00pm (GMT) 14 March 2018. Group Ppt presentations to be submitted to loop5.00pm Wed 21Mar 2018. Group presentations will be hosted by Prof. Jaizah Othman on 3 April 2018.
Guidance: The analysis in your report
should; - Demonstrate an understanding of accounting financial statements and the utilisation of accounting information in financial management.
- Analyse the financial health of a company using the range of tools and metrics for financial appraisal that have been discussed in class and in presented in the module materials, to the extent that is possible for this company.
- Include reference to corporate profitability, liquidity, operational efficiency (to the extent possible), corporate structure and financial gearing, and investment
- Contrast the alternatives that are available to the for raising capital that are available to the firm and evaluate their strategic implication.
- Present a critical appraisal of the value proposition offered by Tesla in a corporate context. Justification should be provided via your numerical analysis.
- Provide some comparison with a competitor, in this case it would be a sectoral competitor ‘for capital’ as there is no exact competitor in the auto world.
- Your analysis could refer to any deficiencies in the publicly available dataencountered in the execution of this task.
- Supply supporting numerical evidence of all calculations – eg.from excel spreadsheets, in your report. Screen snips of an excel calculation may be put in the appendix , with tables and other graphics in main body of report.
Your analysis
may introduce any relevant data from other third-party sources you find helpful.
