Tesla Triggers $1.4 Billion Accounting Nightmare—Something Shady Going On?!

Well, well, well, what did I say at the end of Friday’s Final Tally article? ICYMI, I said it’s only a matter of time before Elon decides to wreak havoc in the markets with another headline—and guess what? Today is that day. This time, Elon Musk is keeping bean counters sweating at night as the Financial Times is calling out a $1.4 billion gap in Tesla’s capex reporting. Bigly.

(Source: Giphy) 

In short, Tesla claims to have spent $6.3 billion on property and equipment in the second half of 2024. But when you check how much their actual assets increased, it was only $4.9 billion. That’s a $1.4 billion discrepancy, which is the kind of rounding error that gets CFOs fired—unless you’re Tesla, in which case, it’s just another Tuesday (presumably because Elon is busy DOGE’ing everyone else except his own company LOL) 

So with that said, where the hell did the money go? Normally, when a company spends on capital expenditures, it shows up as an increase in their property, plant, and equipment. Simple, right? Except Tesla’s PP&E didn’t rise by the same amount they supposedly spent. Now, before you start screaming “fraud”, there are a few possible explanations, like: asset sales or impairment—except Tesla didn’t report any. Or foreign exchange fluctuations–except four-fifths of its assets are in the U.S., so that excuse is weak. Ok, well what about depreciation adjustments? Yeah that could work, except if you’re an expert in capex normality, then you’d know that wouldn’t explain a gap this big. 

(Source: Electrek) 

Meaning, this leaves us with two options: either Tesla’s accounting really is a mess, or something shady is going on. Of course, as of right now, no one really knows for sure yet—but, but, but… here’s where things get even weirder. Tesla claims to have $37 billion in cash, but they still raised $6 billion in new debt last year. That’s like a guy showing off his fat bank account balance while applying for payday loans. In fact, most companies sitting on that much cash would either pay down debt (because why rack up interest payments when you don’t need to?) or do a stock buyback or issue dividends (because that’s what companies with “real” cash piled do). 

(Source: Fortune) 

However, Tesla did neither. Instead, Musk kept the cash, took on more debt, and let the stock tank 50% from its highs. The problem with this is that back in 2022, Musk told investors he’d push for Tesla to start buying back shares—you know, like every other cash-rich company that isn’t hoarding money like a doomsday prepper. Fast forward to today, and no buybacks, no dividends, just more excuses. 

So, given everything mentioned so far, should investors be worried? Well, Tesla’s stock has already lost nearly $750 billion in market cap, thanks to plummeting sales, Musk’s political distractions, and a market that’s finally waking up to reality. Now, with serious questions about its financials, the pressure is only going to get worse.

(Source: Giphy) 

Auditors haven’t thrown up any red flags—yet—but let’s be real: if this were any other company, investors would be calling for SEC investigations. Instead, Tesla’s fanbase is busy tweeting about robotaxis, AI, and Optimus robots—none of which exist in any meaningful way. 

Bottom line? If Tesla can’t explain where $1.4 billion went, it’s not just a red flag—it’s a whole damn fireworks show. Meaning, keep an eye on this story as it continues to unfold and place your bets accordingly—things should get interesting as we resume trading tomorrow morning. As always, stay safe and stay frosty, friends! Until next time… 

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock—right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside this week's Stocks.News premium article—click here to check it out ASAP! 

Stocks.News holds positions in Tesla as mentioned in the article.