Tesla, the well-known electric car company, is facing questions about its finances.
The company recently discovered a $1.4 billion discrepancy in its financial records. Experts are unsure where the money went, raising concerns about Tesla’s financial management.
Tesla’s financial health has been under scrutiny in recent months. One of its early investors, Ross Gerber, has criticized CEO Elon Musk, saying he is too distracted by politics and not paying enough attention to the company.
Gerber believes Tesla needs new leadership. “I think Tesla needs a new CEO,” he said. “The business has been neglected for too long.”
Since December 2024, Tesla’s stock price has dropped by more than 37%, reducing the company’s market value by over $800 billion. This sharp decline has worried investors.
A recent report revealed that Tesla spent $6.3 billion on property and equipment in the second half of 2024. However, its balance sheet only shows an increase of $4.9 billion in asset value.
This leaves a $1.4 billion gap that has not been explained.
Accounting expert Luzi Hail from the Wharton School suggested possible reasons for the missing funds. He mentioned that Tesla might have sold some assets, but the details of those transactions are unclear.
Other possibilities include mergers, acquisitions, or foreign currency adjustments affecting the reported numbers.
What makes this situation more concerning is that Tesla has not faced similar issues in the past five years. The lack of previous warning signs has led to speculation that an accounting error may be the cause.
Despite this, Tesla continues to raise funds through new debt, indicating that the company remains confident about its future. However, ongoing negative media coverage and protests could test that confidence.
Elon Musk’s recent actions have also drawn attention away from Tesla’s business. His involvement in political debates and controversial statements have sparked criticism.
He recently demanded that government employees provide weekly updates on their tasks or face consequences. This and other reports of layoffs at Musk-related companies have caused concern among investors and employees.
