The Tesla Files Unveil More Accounting Fraud Than Imagined
An amended complaint in the "Greenspan v. Musk" lawsuit alleges accounting fraud at Tesla, citing practices to inflate market value. Sales in China and Europe have declined, raising demand concerns.
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An amended complaint in the "Greenspan v. Musk et al" lawsuit has revealed extensive allegations of accounting fraud at Tesla, based on internal data known as the "Tesla Files." The filing, submitted by Aaron Greenspan, includes insights from Lukasz Krupski, a former Tesla technician who was granted whistleblower status. The complaint outlines various fraudulent practices aimed at inflating Tesla's market value, which peaked at $1.24 trillion in 2021. Key allegations include misrepresenting customer funds through the mobile app, booking used cars as new sales, and overstating vehicle deliveries. The complaint suggests that these actions were taken to ensure Musk received a substantial bonus tied to the company's market cap. Additionally, Tesla's sales in China have recently dropped by 17% year-over-year, despite incentives, and European battery electric vehicle sales have also declined. The company has approached the Canadian government to negotiate a reduction in a proposed 100% import tariff on Chinese-made cars. The ongoing scrutiny and legal challenges could have significant implications for Tesla's reputation and financial standing.
- An amended complaint reveals extensive accounting fraud allegations against Tesla and Musk.
- Internal data from the "Tesla Files" highlights practices aimed at inflating market value.
- Recent sales in China and Europe have declined, raising concerns about demand.
- Tesla is negotiating with Canada regarding a proposed 100% import tariff on Chinese cars.
- The legal challenges could impact Tesla's reputation and financial future.
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5 commentsLots of topics to cover this week aside from the headline story, but here is the breakdown for today’s Tesla Weekly:
Bombshell Complaint Filed Against Musk & Tesla—The Main Story Of This Report: An amended complaint in the Greenspan v. Musk et al trial was filed on Wednesday with damning internal data from Tesla highlighting a vast array of accounting fraud. It’s an explosive report, which is why it is the focus of today’s Tesla Weekly.
Trading Thoughts: Tesla is down 6.4% on the week through yesterday on lower-than-average volumes. Break outs to the upside were swiftly sold down, but there was an effort to keep the stock above $203, its 200-day moving average.
China Weekly Sales Suddenly Dropped Last Week: Despite 0% loans from Tesla and $2,800 incentives from the PRC, Tesla’s sales last week dropped by 17% YoY. This is odd given the low hurdle from Q3 2023.
maybe I missed it, but I could not find anything substantial regarding the more recent years. Most points are about accounting interpretations in the years up to 2020 when Tesla finances still were weak...
What did I miss about any issues with current accounting malpractices?
There is more at play here. I think it's mania and a strong case of the market can remain irrational longer than the short can remain solvent. Tesla, at the current fundamentals, is worth much less than $650Bn. How is that possible and how one takes a company with y value to 10.y is still not yet answered.
Maybe Elon Musk is not a fool after all. He did buy Twitter at a big mark up. But if momentum drove his market cap and he can capitalize on that through the stock market then buying Twitter does make sense: It's backed by Tesla stock but the Tesla stock itself is backed by Twitter.
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