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Financial and ESG Performance at Tesla: ...

Naughton, James

Case

Financial and ESG Performance at Tesla: Accelerating the World’s Transition to Sustainable Energy

Naughton, James

C-2486 | Published July 30, 2024 | 11 pages Case

Collection: Darden School of Business

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In this case, Grace Dagda, an employee at Ceres, a boutique investment adviser, has been asked to provide a client a detailed analysis of Tesla, Inc. The client had expressed strong concerns about the company from both a financial and nonfinancial perspective, which puzzles Dagda because Tesla had reported strong first-quarter earnings for 2022, beating analysts' expectations. And she thinks Tesla seems like the epitome of the type of company her clients liked: one that had top-of-the-line performance along financial and nonfinancial dimensions and that was following through on its mission statement to "accelerate the world's transition to sustainable energy." But something is making Dagda's client nervous about Tesla. She decides to conduct an analysis of the company's most recent SEC Forms 10-Q and 10-K, plus its 2021 sustainability report, because she is interested in whether environmentally conscious activities could be contributing to earnings.