Sorry for the longer post, but I want to debunk the common misconception that you can (feasibly) hedge away future exchange rate movements.
I think it's best explained through an example, so let's suppose company ABC will sell premium dinner forks to Canada each year for the foreseeable future, with the USD/CAD starting at 1.00. Here are the options of how they can deal with currency fluctuations.
Option A: Unhedged
The company will set the price of their forks based on the current exchange rate and revise prices as required.
Option B: Typical FX Hedging
The company will forecast sales for the quarter (time period can vary) and hedge this amount to lock-in the pricing for sales during this period. At the end of this period, you would forecast and hedge the next period based on the prevailing spot rate at that point (roll your hedge forward).
The below table shows how it would work if you have perfectly stable sales, thus perfect forecasting. The three sets of numbers are unhedged, hedged (theoretical), hedged (with example cost built in).
Notice that over time, the economics still reflect the underlying currency.
There is no way to escape this. All you can do is always push out the volatility forward one period (whether that be a quarter, year, or otherwise), as your new roll cost will reflect the spot rate at that point. You basically pay to push forward the rate by one period perpetually as you roll your hedge. I coloured the different rows based on which spot rate it's based on to highlight this.
While locking in upcoming cash flow exchange rates has a lot of merit (more reliable quarterly guidance, as one), over time you are incurring a cost for the hedge transaction. In addition, it adds risk that the cash flows occur as predicted in your forecasts, if the quantity or timing is off then your hedge itself becomes currency speculation.
While this tradeoff makes tremendous sense for a lot of businesses like a commodity producer with thin margins, it may not necessarily be the case for a high margin product growth company that is long-term focused and can absorb some short term fluctuations. Personally, I think there's no clear case as to whether Tesla should or shouldn't hedge at this point - it can be justified either way.