Financial Risk Workshop Tesla
Discuss the types of financial risk Tesla is subject to (check definition of Financial Risk in the slides, Annual report, links). Substantiate your discussion of financial risks by applying the relevant metrics in Appendix I to Teslas financial data and the metrics in the links or Annual report (the more metrics you use, the better).
Explain the meaning of the negative cash flows in the Statement of Cash Flows. How does Tesla cover those negative cash flows? How does Tesla propose to generate cash flows eventually (long-run)?
Recently, a Tesla car on autopilot killed a pedestrian in a traffic accident. Based on the risk workshops that we have done so far, how would you categorize this risk, IT, Strategic, Operational?
Using Form 8-K, what are the broad milestones that CEO Elon Musk must meet before he is awarded shares? Do the milestones align Elon Musks interests with Tesla shareholders interests? Explain?
How do you assess Tesla’s financial risk rating – high, moderate, low? Support your reasoning using Teslas own data and the metrics that you find relevant for the task?