On Thursday, InsideEV reported that Tesla is facing allegations of accounting discrepancies.
According to the report, Tesla spent $6.3 billion on capital expenditures during the second half of 2024, but its balance sheet showed only a $4.9 billion increase in total assets, property, and equipment for the same period, leaving $1.4 billion unaccounted for.
Accounting experts suggest that the discrepancies may be due to typical factors such as asset sales, depreciation, or transaction errors. However, since Tesla has not reported any major asset sales or losses and foreign exchange fluctuations have been ruled out, the report raises concerns about the seriousness of the issue.
The Financial Times harshly criticized Tesla, stating that these incidents highlight how CEO Elon Musk’s political distractions have significantly weakened the company’s internal controls. The FT also pointed out that red flags are now waving for Tesla.
As of the end of 2024, Tesla reportedly has $37 billion in cash reserves. Despite this substantial liquidity and no clear need for additional financing, the company raised an extra $6 billion in debt. The Financial Times noted that this situation raises serious questions about the rigor of Tesla’s financial controls, contributing to the ongoing decline in its stock price.
