v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Disaggregation of Revenue by Major Source
The following table disaggregates our revenue by major source (in millions):
Year Ended December 31,
202520242023
Automotive sales$65,821 $72,480 $78,509 
Automotive regulatory credits1,993 2,763 1,790 
Energy generation and storage sales12,270 9,564 5,515 
Services and other12,530 10,534 8,319 
Total revenues from sales and services92,614 95,341 94,133 
Automotive leasing1,712 1,827 2,120 
Energy generation and storage leasing501 522 520 
Total revenues$94,827 $97,690 $96,773 
Schedule of Deferred Revenue Activity
Deferred revenue related to internet connectivity, access to our FSD (Supervised) features and their ongoing maintenance, free Supercharging programs and over-the-air software updates primarily on automotive sales consisted of the following (in millions):
Year Ended December 31,
20252024
Deferred revenue — beginning of period$3,599 $3,536 
Additions1,083 1,343 
Net changes in liability for pre-existing contracts,
   including foreign exchange impact
141 (92)
Revenue recognized(956)(1,188)
Deferred revenue — end of period$3,867 $3,599 
Schedule of Net Income per Share of Common Stock Attributable to Common Stockholders
The following table presents the reconciliation of net income attributable to common stockholders to net income used in computing basic and diluted net income per share of common stock (in millions):
Year Ended December 31,
202520242023
Net income attributable to common stockholders$3,794 $7,091 $14,997 
Less: Buy-outs of noncontrolling interests— (39)(2)
Net income used in computing basic and diluted net income per share of common stock$3,794 $7,130 $14,999 
RSAs will be excluded from the computation of diluted weighted average shares until the shares have been deemed to be earned. The following table presents the reconciliation of basic to diluted weighted average shares used in computing net income per share of common stock attributable to common stockholders (in millions):
Year Ended December 31,
202520242023
Weighted average shares used in computing net income per share of common stock, basic3,2253,1973,174
Add:
Stock-based awards303292298
Convertible senior notes—12
Warrants—811
Weighted average shares used in computing net income per share of common stock, diluted3,5283,4983,485
Schedule of Potentially Dilutive Shares that were Excluded from Computation of Diluted Net Income per Share of Common Stock
The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income per share of common stock attributable to common stockholders, because their effect was anti-dilutive (in millions):
Year Ended December 31,
202520242023
Stock-based awards41512
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):
December 31,
2025		December 31,
2024		December 31,
2023
Cash and cash equivalents$16,513 $16,139 $16,398 
Restricted cash included in prepaid expenses and other current assets389 494 543 
Restricted cash included in other non-current assets714 404 248 
Total as presented in the consolidated statements of cash flows$17,616 $17,037 $17,189 
Schedule of Estimated Useful Lives of Related Assets
Property, plant and equipment, net, including leasehold improvements, are recognized at cost less accumulated depreciation. Depreciation is generally computed using the straight-line method over the estimated useful lives of the respective assets, as follows:
Machinery, equipment, vehicles and office furniture
3 to 15 years
Tooling
4 to 7 years
Building and building improvements
15 to 30 years
Computer equipment and software
3 to 6 years
AI infrastructure
5 to 30 years
Schedule of Accrued Warranty Activity Accrued warranty activity consisted of the following (in millions):
Year Ended December 31,
202520242023
Accrued warranty—beginning of period$6,716 $5,152 $3,505 
Warranty costs incurred(1,723)(1,453)(1,225)
Net changes in liability for pre-existing warranties, including expirations and foreign exchange impact1,127 287 539 
Provision for warranty2,487 2,730 2,333 
Accrued warranty—end of period$8,607 $6,716 $5,152 
Schedule of Operations for the Adoption of the ASU The cumulative effect of the changes made on our January 1, 2024 consolidated balance sheet for the adoption of the new crypto assets standard was as follows (in millions):
Balances at
 December 31, 2023		Adjustments from Adoption of the New Crypto Assets StandardBalances at
 January 1, 2024
Assets
Digital assets, net$184 $303 $487 
Deferred tax assets6,733 (67)6,666 
Stockholders' equity
Retained earnings27,882 236 28,118