From questionable accounting practices to reliance on capitalizing expenses, this quarter’s TSLA financials raise serious red flags.
Industrials analyst Jay Van Sciver said, “People need to step back and just say, like, what happened?” on The Call @ Hedgeye.
Auto revenue growth barely rounded to 2%, and excluding deferred revenue, it actually fell. Tesla's growing inventory and doubling of prepaid expenses on flat revenue signal significant overproduction and financial mismanagement.
“If Tesla were really killing it, why would they cut R&D? Why would they cut SG&A?” said Van Sciver.
Don’t be fooled by the stock price pop. This is a textbook example of capitalized expenses masking deeper issues. Subscribe to The Call @ Hedgeye for the real story.
