Analysis of Property, Plant and Equipment
Paying user area
Try for free
Tesla Inc. pages available for free this week:
- Income Statement
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2010
- Net Profit Margin since 2010
- Debt to Equity since 2010
- Total Asset Turnover since 2010
- Price to Earnings (P/E) since 2010
- Price to Book Value (P/BV) since 2010
- Price to Sales (P/S) since 2010
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Tesla Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Property, Plant and Equipment Disclosure
Tesla Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals a consistent upward trend in both the gross and net values of property, plant, and equipment over the five-year period. This reflects a sustained investment in physical assets and infrastructure.
- Machinery, equipment, vehicles and office furniture
- There is a steady increase from 8,493 million US$ in 2020 to 18,339 million US$ in 2024. The growth indicates ongoing procurement and expansion in operational capacity.
- Land and buildings
- Values rise from 3,662 million US$ in 2020 to 10,677 million US$ in 2024. The significant increase suggests substantial acquisitions or developments in real estate assets.
- AI infrastructure
- This category appears starting from 2023 with 1,510 million US$, escalating sharply to 5,152 million US$ in 2024. This represents a new and rapidly growing area of investment, highlighting an emphasis on advanced technological infrastructure.
- Tooling
- The value increases steadily from 1,811 million US$ in 2020 to 3,883 million US$ in 2024, indicating continual enhancement of manufacturing and production tools.
- Leasehold improvements
- There is a clear growth from 1,421 million US$ in 2020 to 3,688 million US$ in 2024, reflecting ongoing investment in leased property enhancements.
- Computer equipment, hardware and software
- The figures grow from 856 million US$ in 2020 to 2,902 million US$ in 2024, showing increased spending on IT and related technologies.
- Construction in progress
- This fluctuates, starting at 1,621 million US$ in 2020, peaking at 5,559 million US$ in 2021, then declining to 4,263 million US$ in 2022, before rising again to 6,783 million US$ in 2024. These variations suggest cyclical phases of large-scale development projects.
- Property, plant and equipment, gross
- The gross amount nearly triples from 17,864 million US$ in 2020 to 51,424 million US$ in 2024, underscoring substantial asset additions over the period.
- Accumulated depreciation
- Accumulated depreciation increases from -5,117 million US$ in 2020 to -15,588 million US$ in 2024, reflecting the aging and usage of assets over time.
- Property, plant and equipment, net
- Net asset values rise steadily from 12,747 million US$ in 2020 to 35,836 million US$ in 2024, confirming robust asset growth after accounting for depreciation.
Overall, the data indicates a strong and continuous commitment to capital expenditure, particularly highlighted by new investment in AI infrastructure and significant expansions across all asset categories. The growth in net values alongside rising accumulated depreciation suggests a balanced approach to asset acquisition and asset lifecycle management.
Asset Age Ratios (Summary)
Tesla Inc., asset age ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Average age ratio
- The average age ratio begins at 28.64% in 2020 and declines to 26.28% in 2021, indicating a relative reduction in the age of the property, plant, and equipment assets. However, from 2022 onwards, the ratio gradually increases each year, reaching 30.31% by 2024. This pattern suggests a recent trend toward aging assets or slower asset replacement after 2021.
- Estimated total useful life
- The estimated total useful life of the assets increased from 11 years in 2020 to 13 years in 2021 and remained steady at 13 years through 2023. In 2024, the total useful life decreased slightly to 12 years. This may reflect revisions in asset longevity assumptions or changes in asset composition during these years.
- Estimated age, time elapsed since purchase
- The estimated age of assets increased from 3 years in 2020 to 4 years in 2021 and then leveled off, remaining constant at 4 years through 2024. This plateau suggests that recent asset purchases have been relatively stable, with no significant acceleration in asset aging after 2021.
- Estimated remaining life
- The estimated remaining life saw an increase from 8 years in 2020 to 10 years in 2021 and remained at 10 years through 2022. It then declined slightly to 9 years in 2023 and remained at that level in 2024. This pattern reflects an initial improvement in expected asset longevity followed by a modest decrease in the latter years.
Average Age
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Accumulated depreciation | ||||||
| Property, plant and equipment, gross | ||||||
| Asset Age Ratio | ||||||
| Average age1 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Average age = 100 × Accumulated depreciation ÷ Property, plant and equipment, gross
= 100 × ÷ =
- Property, Plant and Equipment, Gross (US$ in millions)
- The gross value of property, plant, and equipment exhibited a consistent and significant upward trend over the examined periods. Beginning at 17,864 million in 2020, it increased annually, reaching 51,424 million by 2024. This indicates substantial investment and expansion in fixed assets, more than doubling over the five-year span.
- Accumulated Depreciation (US$ in millions)
- Accumulated depreciation also rose continuously, moving from 5,117 million in 2020 to 15,588 million in 2024. The growth in accumulated depreciation reflects ongoing usage and aging of the asset base. The increase is roughly threefold, signaling that depreciation expenses have been steadily recorded in line with asset additions and aging.
- Average Age Ratio (%)
- The average age ratio, which measures the proportion of accumulated depreciation to gross property, plant, and equipment, showed relative stability with a slight increasing trajectory. Starting at 28.64% in 2020, it dipped somewhat in 2021 to 26.28% but then rose gradually each year thereafter to reach 30.31% in 2024. This suggests that the asset base is aging moderately, with depreciation capturing roughly around a third of the gross asset value by the end of the period.
- Summary of Trends
- Overall, the data indicate a vigorous expansion in the company’s property, plant, and equipment asset base, supported by substantial investment efforts. While the gross value increased markedly, the corresponding rise in accumulated depreciation shows appropriate accounting for asset aging and usage. The gradual increase in the average age ratio suggests that while new assets are being added, the overall asset portfolio is slightly aging, indicative of a maturing fixed asset profile.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Estimated total useful life = Property, plant and equipment, gross ÷ Depreciation expense
= ÷ =
The analysis of property, plant, and equipment (PP&E) financial data over the five-year period reveals a significant upward trend in the gross value of these assets. The gross PP&E increased steadily from US$17,864 million at the end of 2020 to US$51,424 million by the end of 2024, indicating continuous investment in long-term physical assets.
Depreciation expense also exhibited a consistent increase during the same period, rising from US$1,570 million in 2020 to US$4,120 million in 2024. This pattern aligns with the growth in asset base, reflecting higher consumption or usage of assets over time.
The estimated total useful life of the assets remained fairly stable, with a slight increase from 11 years in 2020 to 13 years from 2021 through 2023, before decreasing to 12 years in 2024. This suggests a relatively consistent expectation regarding the longevity and utility of the assets, with minor adjustments potentially due to changes in asset composition or accounting estimates.
- Property, Plant and Equipment - Gross Value
- An approximate threefold increase over five years indicates robust capital expenditure and expansion in asset capacity.
- Depreciation Expense
- More than doubling across the period, reflecting both the increase in total asset base and their usage or aging.
- Estimated Total Useful Life
- Minor variation suggests a stable assessment of asset longevity, with a slight peak at 13 years before a reduction to 12 years, highlighting possible revisions in asset lifespan assumptions.
Overall, the data suggests a strategic focus on asset growth, supported by consistent capital investment and corresponding depreciation recognition. The stable estimated useful life implies steady asset management practices without drastic changes in accounting policy for asset depreciation.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
The accumulated depreciation of the property, plant, and equipment has exhibited a consistent and substantial upward trend over the examined period. Beginning at US$5,117 million as of December 31, 2020, it increased to US$6,731 million in 2021, then rose sharply to US$9,041 million in 2022. The ascent continued with the accumulated depreciation reaching US$12,057 million in 2023 and further escalating to US$15,588 million in 2024. This pattern indicates a steady recognition of depreciation expense over time, reflecting the ongoing usage and aging of fixed assets.
The depreciation expense itself also shows a clear increasing trajectory. Starting at US$1,570 million in 2020, it grew to US$1,910 million in 2021, then increased to US$2,420 million in 2022. The expense rose more markedly to US$3,330 million in 2023, and further to US$4,120 million by the end of 2024. This increasing depreciation expense suggests either new asset additions being depreciated or a change in the depreciation method or asset mix leading to higher expense recognition.
The time elapsed since purchase remains relatively stable, beginning at 3 years in 2020 and shifting to 4 years from 2021 onwards through 2024. This constancy indicates that the average age of property, plant, and equipment has been maintained at approximately four years from 2021 forward, which may imply a consistent asset replacement or capitalization strategy.
- Summary of Observations
- The company has experienced a steady and significant increase in both accumulated depreciation and annual depreciation expense from 2020 to 2024.
- The increase in depreciation expense is more pronounced in the latter years, suggesting accelerated asset additions or changes in depreciation policies.
- The stable average asset age at four years from 2021 onwards points to consistent asset management practices.
Estimated Remaining Life
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Estimated remaining life = Property, plant and equipment, net ÷ Depreciation expense
= ÷ =
- Property, plant and equipment, net
- The net value of property, plant, and equipment shows a consistent upward trend over the five-year period. Starting at 12,747 million US dollars in 2020, it increased steadily each year, reaching 35,836 million US dollars by the end of 2024. This demonstrates ongoing investments in fixed assets or expansion of existing assets.
- Depreciation expense
- The depreciation expense follows a similar increasing pattern, rising from 1,570 million US dollars in 2020 to 4,120 million US dollars in 2024. The rate of increase in depreciation expense appears to accelerate over time, which may reflect the growing asset base and the aging of the assets in use.
- Estimated remaining life
- The estimated remaining life of the property, plant, and equipment remained relatively stable around 10 years from 2020 to 2022, then decreased slightly to 9 years in 2023 and 2024. This slight reduction could indicate that newer assets with longer lives have been recently added, balancing out the aging of older assets and resulting in a marginal shortening of the overall remaining life estimate.
- Summary
- The data indicates a strategy focused on significant capital expenditure and asset growth, with net property, plant, and equipment values nearly tripling in five years. The increasing depreciation expense aligns with the asset growth, reflecting both new acquisitions and the ongoing use of assets. The relatively stable estimated remaining life suggests careful asset management despite rapid expansion.