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Tesla reportedly missing $1.4 billion, but we're sure it's fine — “Aggressive classification of operating expenses as investment can be used to artificially boost reported profits”: FT


Typically, it's considered a big problem if someone loses $1.4 billion.

But while that looks bad at first glance, it's also entirely possible Tesla simply sold some property or equipment, thus lowering PP&E on the balance sheet. Looking at Tesla's capital expenditure on PP&E compared to the reported change in asset value on the balance sheet since 2019, you can see there's nothing to worry about. When Elon reveals something huge early in the second quarter this year that explains it all, all the people asking questions about a mere $1.4 billion are going to feel like idiots.

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