Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of Disaggregation of Revenue by Major Source

The following table disaggregates our revenue by major source (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Automotive sales without resale value guarantee	$	4,423	$	4,919	$	8,790	$	8,602
Automotive sales with resale value guarantee (1)		60		138		232		(252	)
Automotive regulatory credits		428		111		782		327
Energy generation and storage sales		225		226		398		438
Services and other		487		605		1,047		1,098
Total revenues from sales and services		5,623		5,999		11,249		10,213
Automotive leasing		268		208		507		423
Energy generation and storage leasing		145		143		265		255
Total revenues	$	6,036	$	6,350	$	12,021	$	10,891

(1)

Due to pricing adjustments we made to our vehicle offerings in the first half of 2019 and in the second quarter of 2020, we estimated that there was a greater likelihood that customers would exercise their buyback options and adjusted our sales return reserve on vehicles previously sold under our buyback options program, which resulted in a reduction of automotive sales with resale value guarantee. For the three and six months ended June 30, 2020, price adjustments resulted in a reduction of automotive sales with resale value guarantee of $60 million. For the three and six months ended June 30, 2019, price adjustments resulted in a reduction of automotive sales with resale value guarantee of $64 million and $565 million, respectively. The amounts presented represent automotive sales with resale value guarantee net of such pricing adjustments’ impact.

Schedule of Computation of Basic and Diluted Net Income (Loss) Per Sale of Common Stock Attributable to Common Stockholders

The following table presents the computation of basic and diluted net income (loss) per share of common stock attributable to common stockholders (in millions, except per share data):

	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020		2019
Net income (loss) per share of common stock attributable to common stockholders, basic
Net income (loss) attributable to common stockholders	$	104	$	(408	)	$	120	$	(1,110	)
Less: Buy-out of noncontrolling interest		—		—			—		8
Net income (loss) used in computing net income (loss) per share of common stock, basic		104		(408	)		120		(1,118	)
Weighted average shares used in computing net income (loss) per share of common stock, basic		186		177			184		175
Net income (loss) per share of common stock attributable to common stockholders, basic	$	0.56	$	(2.31	)	$	0.65	$	(6.40	)

Net income (loss) per share of common stock attributable to common stockholders, diluted
Net income (loss) attributable to common stockholders	$	104	$	(408	)	$	120	$	(1,110	)
Less: Buy-out of noncontrolling interest		—		—					8
Net income (loss) used in computing net income (loss) per share of common stock, diluted		104		(408	)		120		(1,118	)
Weighted average shares used in computing net income (loss) per share of common stock, basic		186		177			184		175
Add:
Stock-based awards		10		—			10		—
Convertible senior notes		8		—			7		—
Warrants		3		—			2		—
Weighted average shares used in computing net income (loss) per share of common stock, diluted		207		177			203		175
Net income (loss) per share of common stock attributable to common stockholders, diluted	$	0.50	$	(2.31	)	$	0.59	$	(6.40	)

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):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Stock-based awards		0		13		0		12
Convertible senior notes		0		1		0		1

Schedule of Cash and Cash Equivalents and Restricted Cash

Our total cash and cash equivalents and restricted cash, as presented in the consolidated statements of cash flows, was as follows (in millions):

	June 30,		December 31,		June 30,		December 31,
	2020		2019		2019		2018
Cash and cash equivalents	$	8,615	$	6,268	$	4,955	$	3,686
Restricted cash included in prepaid expenses and other current assets		203		246		128		193
Restricted cash included in other non-current assets		288		269		366		398
Total as presented in the consolidated statements of cash flows	$	9,106	$	6,783	$	5,449	$	4,277

Schedule of Accrued Warranty Activity

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Accrued warranty—beginning of period	$	1,130		$	844		$	1,089		$	748
Warranty costs incurred		(62	)		(61	)		(143	)		(115	)
Net changes in liability for pre-existing warranties, including expirations and foreign exchange impact		9			5			12			42
Provision for warranty		120			153			239			266
Accrued warranty—end of period	$	1,197		$	941		$	1,197		$	941