Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Disaggregation of Revenue by Major Source

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Automotive sales without resale value guarantee	$	6,788	$	4,821	$	15,578	$	13,423
Automotive sales with resale value guarantee (1)		161		177		393		(75	)
Automotive regulatory credits		397		134		1,179		461
Energy generation and storage sales		439		241		837		680
Services and other		581		548		1,628		1,646
Total revenues from sales and services		8,366		5,921		19,615		16,135
Automotive leasing		265		221		772		644
Energy generation and storage leasing		140		161		405		415
Total revenues	$	8,771	$	6,303	$	20,792	$	17,194

(1)

Due to pricing adjustments we made to our vehicle offerings during the nine months ended September 30, 2020 and 2019, 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 nine months ended September 30, 2020, price adjustments resulted in a reduction of automotive sales with resale value guarantee of $12 million and $72 million, respectively. For the nine months ended September 30, 2019, price adjustments resulted in a reduction of automotive sales with resale value guarantee by $555 million. The amounts presented represent automotive sales with resale value guarantee net of such pricing adjustments’ impact.

Schedule of Reconciliation of Basic to Diluted Weighted Average Shares Used in Computing Net Income (Loss) Per Share of Common Stock, as Adjusted to Give Effect to Stock Split

The following table presents the reconciliation of basic to diluted weighted average shares used in computing net income (loss) per share of common stock attributable to common stockholders, as adjusted to give effect to the Stock Split (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Weighted average shares used in computing net income (loss) per share of common stock, basic		937		897		927		882
Add:
Stock-based awards		74		25		59		—
Convertible senior notes		52		—		45		—
Warrants		42		—		28		—
Weighted average shares used in computing net income (loss) per share of common stock, diluted		1,105		922		1,059		882

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Stock-based awards		1		37		0		61
Convertible senior notes		0		5		1		5

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):

	September 30,		December 31,		September 30,		December 31,
	2020		2019		2019		2018
Cash and cash equivalents	$	14,531	$	6,268	$	5,338	$	3,686
Restricted cash included in prepaid expenses and other current assets		174		246		233		193
Restricted cash included in other non-current assets		298		269		255		398
Total as presented in the consolidated statements of cash flows	$	15,003	$	6,783	$	5,826	$	4,277

Schedule of Accrued Warranty Activity

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Accrued warranty—beginning of period	$	1,197		$	941		$	1,089		$	748
Warranty costs incurred		(77	)		(59	)		(220	)		(175	)
Net changes in liability for pre-existing warranties, including expirations and foreign exchange impact		(26	)		(37	)		6			36
Provision for warranty		175			138			394			374
Accrued warranty—end of period	$	1,269		$	983		$	1,269		$	983