Leases (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Operating and Financing Leases Presented in Balance Sheets

The balances for the operating and finance leases where we are the lessee are presented as follows (in millions) within our consolidated balance sheets:


	December 31, 2025		December 31, 2024
Operating leases:
Operating lease right-of-use assets	$	6,027	$	5,160

Accrued liabilities and other	$	954	$	807
Other long-term liabilities	5,389		4,603
Total operating lease liabilities	$	6,343	$	5,410

Finance leases:
Energy generation and storage systems, net	$	19	$	21
Property, plant and equipment, net	229		350
Total finance lease assets	$	248	$	371

Current portion of long-term debt and finance leases	$	71	$	113
Long-term debt and finance leases, net of current portion	152		222
Total finance lease liabilities	$	223	$	335

Schedule of Components of Lease Expense and Other Information Related to Leases

The components of lease expense are as follows (in millions) within our consolidated statements of operations:


	Year Ended December 31,
	2025		2024		2023
Operating lease expense:
Operating lease expense (1)	$	1,766	$	1,500	$	1,153

Finance lease expense:
Amortization of leased assets	$	118	$	409	$	506
Interest on lease liabilities	12		21		45
Total finance lease expense	$	130	$	430	$	551

Total lease expense	$	1,896	$	1,930	$	1,704

(1)Includes short-term leases and variable lease costs, which are individually immaterial.

Other information related to leases where we are the lessee is as follows:


	December 31, 2025		December 31, 2024
Weighted-average remaining lease term:
Operating leases	7.7 years		7.9 years
Finance leases	4.3 years		4.4 years

Weighted-average discount rate:
Operating leases	5.0	%	5.3	%
Finance leases	4.7	%	4.7	%

Supplemental cash flow information related to leases where we are the lessee is as follows (in millions):


	Year Ended December 31,
	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	1,743	$	1,450	$	1,084
Operating cash outflows from finance leases (interest payments)	$	12	$	21	$	47
Leased assets obtained in exchange for finance lease liabilities	$	—	$	144	$	10
Leased assets obtained in exchange for operating lease liabilities	$	1,643	$	1,808	$	2,170

Lessee, Operating Lease, Liability, to be Paid, Maturity

As of December 31, 2025, the maturities of our operating and finance lease liabilities (excluding short-term leases) are as follows (in millions):


	Operating Leases		Finance Leases
2026	$	1,241	$	80
2027	1,127		72
2028	1,012		27
2029	879		22
2030	787		22
Thereafter	2,668		23
Total minimum lease payments	7,714		246
Less: Interest	1,371		23
Present value of lease obligations	6,343		223
Less: Current portion	954		71
Long-term portion of lease obligations	$	5,389	$	152

Finance Lease, Liability, to be Paid, Maturity

As of December 31, 2025, the maturities of our operating and finance lease liabilities (excluding short-term leases) are as follows (in millions):


	Operating Leases		Finance Leases
2026	$	1,241	$	80
2027	1,127		72
2028	1,012		27
2029	879		22
2030	787		22
Thereafter	2,668		23
Total minimum lease payments	7,714		246
Less: Interest	1,371		23
Present value of lease obligations	6,343		223
Less: Current portion	954		71
Long-term portion of lease obligations	$	5,389	$	152

Lessor, Operating Lease, Payment to be Received, Maturity

We are the lessor of certain vehicle and energy generation and storage systems as described in Note 2, Summary of Significant Accounting Policies. As of December 31, 2025, maturities of our operating lease and sales-type lease receivables from customers for each of the next five years and thereafter were as follows (in millions):


	Operating Leases		Sales-type Leases
2026	$	1,045	$	144
2027	709		83
2028	363		27
2029	210		5
2030	203		—
Thereafter	1,077		—
Gross lease receivables	$	3,607	$	259

Sales-Type and Direct Financing Leases, Payment to be Received, Maturity


	Operating Leases		Sales-type Leases
2026	$	1,045	$	144
2027	709		83
2028	363		27
2029	210		5
2030	203		—
Thereafter	1,077		—
Gross lease receivables	$	3,607	$	259

Schedule of Lease Receivables Relating to Sales-Type Leases

Net investment in sales-type leases, which is the sum of the present value of the future contractual lease payments, is presented on the consolidated balance sheets as a component of Prepaid expenses and other current assets for the current portion and as Other non-current assets for the long-term portion. Lease receivables relating to sales-type leases are presented on the consolidated balance sheets as follows (in millions):


	December 31, 2025		December 31, 2024
Gross lease receivables	$	259	$	484
Unearned interest income	(14)		(38)
Allowance for expected credit losses	(5)		(6)
Net investment in sales-type leases	$	240	$	440

Reported as:
Prepaid expenses and other current assets	$	130	$	152
Other non-current assets	110		288
Net investment in sales-type leases	$	240	$	440

Tesla, Inc. 10-K