Tesla has $1.4 billion that seems to have gone astray, potentially raising questions about the company's controls

[dalton99a]

https://fortune.com/2025/03/23/tesla-billion-gone-astray-questions-controls/

Tesla has $1.4 billion that seems to have gone astray, potentially raising questions about the company’s controls
BY Greg McKenna
March 23, 2025 at 6:13 AM CDT

Elon Musk’s vision to usher in a utopia powered by Tesla robotaxis and the company’s humanoid robot, Optimus, will likely take significant cash. Tesla spent $6.3 billion in capex during the second half of last year, but the gross value of the company’s relevant assets only increased by $4.9 billion. Those numbers should tally for domestic companies without any major asset sales or impairments, but other factors could be at play for Tesla.

Tesla is making big bets on AI, but investors might have a reason to question where the money is going. If left unexplained, a $1.4 billion discrepancy between the firm’s capital expenditures and the valuation of the assets that cash was spent on, first reported by the Financial Times, could spark concerns about internal controls at Elon Musk’s electric vehicle giant.

Several accounting experts, however, say there are plausible justifications for the variance that might not show up on Tesla’s financial statements. You would expect the relevant numbers to add up for a domestic company with no big asset sales or impairments, said Tim Morrison, an accounting professor at Notre Dame and former audit partner at Ernst & Young. Tesla, of course, sells cars around the world and has factories on three continents. PwC has audited Tesla’s financial statements since 2005.

“If they had the numbers incorrect, then that would be a red flag related to controls,” said Morrison, who worked primarily with multinational manufacturing companies and led internal inspections to assess audit quality at EY.

This isn’t the first time Tesla’s accounting practices have been questioned, noted Garrett Nelson, a vice president and senior equity analyst at CFRA Research.

...

[surfered]

1. DOGE to Tesla stat!

[BoRaGard]

2. So the G.O.P. hands the Assclown the keys to America's wealth

...and then goes back to beating the drum about how they are allegedly "conservatives."

What utter evil GOP bullshit.

[Luz]

3. Everything trump touches turns to shit. Elon will

not be spared.

[uponit7771]

4. That's why Enron is burning his Tesla's up, get that insurance to pay the 1.4 billion

[Scrivener7]

5. What does it cost to buy an election?

[RazorbackExpat]

11. $320 million?

Elections don't come cheap, you know

[eppur_se_muova]

6. Wait, could this be due to waste and inefficiency ? Maybe they better put someone to work on that.

Too bad there's no one around who's competent, or at least, enthusiastic about investigating such things.

[usonian]

7. Look for money laundering.

Proof LTR.

[Johonny]

8. Musk wanted the company to pay him 50 billion

It is money the company doesnt have. Why would anyone own a stock in a company paying their CEO like that.

[dalton99a]

9. +1. He owns the board

[Irish_Dem]

10. Musk is not the richest man in the world because he plays nice.

[haele]

13. He's not the richest man. Putin is

That 1.4 billion missing could also be what he owes Putin to be part of Russia's inner circle. I'm thinking this because as other billionaires are just along for their bottom line and to suck up the spoils of the US, $usk is the only one actually spending quality time in person with *rump's handler.

[Irish_Dem]

14. yes I know Putin is the richest man in the world.

He has a least $500 billion, maybe more.

He has stolen most of Russian's wealth and also runs a lucrative sex/drug trade.

[milestogo]

12. The guy whose "$1.4 billion goes astray" is in charge of cutting waste and fraud?

[Yo_Mama_Been_Loggin]

15. And this asshole is auditing our government.

[Mountainguy]

16. It's past time for somebody to begin a hostile takeover of Tesla.

or the major shareholders to oust Musk.