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Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy…

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Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The company’s market cap is $021 Trillion. The interest expenses for the most recent year is $748 millions. It has future maturities of the book value of debt as of December 31, 2020 were as follows ( in millions):[10]

Year

Total Debt

2021

1,818

2022

1,935

2023

2,406

2024

1,851

2025

1,979

2026

580

The maturities of operating lease liabilities are as follows (in millions)

Year

Total Debt

2021

366

2022

327

2023

279

2024

245

2025

204

Thereafter

425

The current portion of lease is $286 million. The unlevered beta for other automobile firms is 1.00. The average Debt/Equity ratio for Tesla is 187%. The current bond rating for the firm is BB which corresponds to a default spread of 2.77%. The ten-year US treasury bond rate is 1.56% and the marginal tax rate is 27%. The market risk premium is 5%.

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