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- cross-posted to:
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- news
The FT has done an investigation into Tesla’s balance sheet and found out that when comparing Tesla’s capital expenditure—reported at about $6.3 billion for the last six months of 2024—to the corresponding rise in the gross value of its property, plant, and equipment (which increased by roughly $4.9 billion), there appears to be a discrepancy of about $1.4 billion. The FT also notes that while differences between cash outlays and recorded asset increases can sometimes be explained by factors such as depreciation, asset disposals, or foreign currency effects, no clear accounting adjustment was provided by Tesla that would justify this gap. Not only is this anomaly a red flag but also keep in mind Tesla has already been caught red-handed trying to commit fraud in Canada recently by falsifying buying reports (ALL Toronto Tesla Dealers have moved on avg 1200 Teslas per day in the past 4 weeks according to Tesla’s tax credit filing with Canada) in order to cash out on a large lump sum of EV credits from the Canadian Gov.
In other words Tesla is looking more and more like Enron every day now
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You have to realize: when things like this start appearing out in the open, they betray an iceberg of problems that just haven’t surfaced yet. In all likelyhood, Tesla is already insolvent and the shares are worthless.
It might still takes months if not years before the house of cards collapses, especially with neutered regulators in the US.
Not if the President simply directs the government to give them contracts and refuses to investigate or pursue any fraud.
Normally there would be IGs to prevent that, they no longer exist. Republican Congress won’t impeach and the Supreme Court gave the President absolute immunity. Trump hold a press conference and say that he’s giving Elon a billion dollar contract because Elon supported his candidacy and there would be zero consequences.
Fraud is for poor people.
I bet the melon head fired the accountants.
Oh no, he just brought in “his” accountants that not only count the beans but create fantastic works of art with them.
And guess who will do nothing about it? Everyone! Fuck elon
We need the stock to tank hard and hope the capitalists blame their losses on fraud. They will demand heads on a pike and have the wealth to make it happen. They could push for musk to be held personally liable and go after his wealth tied up in spacex shares.
It’s all extremely unlikely given this hellish timeline we’ve gone down but it becomes ever more slightly likely as the Tesla stock drops.
No one gave a shit about Enron’s financial shenanigans until the investors lost their money. Such is the way in a capitalist hellhole.
Looks like a case for Marty Hench!
Well good thing he has nothing to do with any government contracts…
Shit.
So… Like every major automobile manufacturer?
Yes, but Tesla is way overvalued, still
They still have a 750~ billion dollar market cap today, placing them at far more than any auto manufacturer on this list
How is this possible? Granted I’m not very knowledgeable about this stuff but really having a hard time understanding how they can be valued so high compared to these other companies that have been around for so much longer with so many more cars on the road etc
Because capitalism
The only thing that matters in this late stage capitalism world is “potential growth”, and Tesla makes a fuckload of money per vehicle because they are overpriced to all hell and are built like toys
It costs almost as much as buying a cheap car every couple years just to own a Tesla
https://insideevs.com/news/731559/tesla-least-reliable-used-car-brands/
Growing companies stock prices are more about speculating what the company will someday be worth instead of what they are actually worth today.
It’s like crypto, the stock doesn’t actually have that much value behind it, but because everyone thinks the price is going to continue to rise they want to get in early so they can sell later when it theoretically is actually worth that much. Their buying causes a feedback loop increasing prices all that much more.
Once the company stops growing investors start actually looking at the profits generated and if they are still overvalued they realize that the price doesn’t match reality and they start selling. That may be a slow correction over years as investors slowly realize they will never grow to match the price, or in context of this article if some sort of massive fraud is found it might be a bubble that crashes the stock quickly. That same feedback loop that increased the price can just as easily crash it.
On the flip side if they actually manage to reach revenues that match their share price the investors putting money in today would be like investing in Amazon in the early 2000s. Amazon’s share price didn’t make sense for a long time, but they used that growth to capture enough market share to make the prices real.
It looks like Tesla has a revenue of around $100b a year so a $1.5b discrepancy probably isn’t enough to pop the bubble, but if sales drop and earnings get even worse it might. This is still early so they might have valid excuses for why the $1.5b numbers don’t line up.
Any site giving you stock quotes will also show you something called the P/E ratio (price dividend by earnings per share) which is how you can easily tell how much revenue there is per share. Tesla has a ratio of 120, in comparison Ford has a PE of 6.8, the average for most stocks is about 20, so you could say that Tesla is 6x overvalued compared to the average stock.
While lower is better for PE a negative PE is much worse as that means the company is losing that much money per share for that quarter. So while Tesla may be overvalued they are making money, just less of it per share than other stocks.
True dat
