Summary
The Financial Times reported a $1.4 billion discrepancy in Tesla’s accounting, raising concerns over missing capital expenditures.
Tesla reported spending $6.3 billion on property and equipment in the second half of 2024, but asset values increased by only $4.9 billion. Experts find no clear explanation for the gap.
Additional red flags include Tesla holding $37 billion in cash while raising $6 billion in new debt and not conducting share buybacks despite $15 billion in operating cash flow.
Analysts warn of parallels to past financial scandals like Wirecard.
Isn’t this type of whoopsie accounting what got Trump et al in trouble? Overvalued assets in loan applications paired with serious asset value losses/undervaluing in tax filings? Or is it worse than that?