Tesla reports $1.4 billion asset investment discrepancy

Tesla is facing scrutiny as it reports a puzzling discrepancy in its financial accounts. Over the last six months of 2024, the company spent $6.3 billion on property and equipment, but the value of its assets only increased by $4.9 billion. This leaves a significant gap of $1.4 billion that has raised concerns among investors. Tesla's stock market value has dropped drastically from $1.7 trillion to below $800 billion. This decline has led to greater interest in its financial health. Despite having a cash reserve of $37 billion, Tesla also took on $6 billion in new debt last year, which raises questions about its cash management. The company is investing heavily in AI infrastructure and plans to spend at least $11 billion annually to strengthen its position in various tech sectors. However, the inconsistency in its financial reports is unusual compared to past trends and raises potential red flags about its internal controls. Experts suggest that the gap in asset value could be due to various accounting reasons, such as asset sales or currency fluctuations, but Tesla has not provided any explanations. The company’s lack of transparency and growing debt could indicate deeper financial issues. While Tesla hopes its recent political endorsement will boost sales, investors are concerned about the company’s spending and cash usage. The situation could impact Tesla's reputation and its plans for future investments, especially as it continues to manage rising inventories and other cash needs.