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Shouldn't we wait for the fully audited FY2018 results before making these bold claims? I feel with Tesla it is always swinging to the extremes. You could do a

Shouldn't we wait for the fully audited FY2018 results before making these bold claims? I feel with Tesla it is always swinging to the extremes. You could do a lot of accounting magic to make one quarter appear great, but it will show up in the full year's numbers. We have to remember that they have a lot of churn in the financial department, for example the CFO left in April (see https://www.business-standard.com/article/companies/elon-musk-s-tesla-sees-a-flurry-of-executives-leave-the-company-since-2016-118101800200_1.html https://www.business-standard.com/article/companies/elon-mus... )

samfisher83 8y ago
I agree Earning and cash flow can be manipulated. To improve cash flow just don't pay your vendors for a quarter. To improve earning you can shift they delivery time from 1q to another. It did look AP went up for Tesla by about 500mil so did AR which is kind of strange, but their Quarter still looked great.
ianai 8y ago
Churn should be a strong indicator of managerial issues. But I think it’s not because of how much wealth companies and certain people amassed.
wjnc 8y ago
I had the same feeling. Could use an accountant chiming in here. On the one hand the third quarter update clearly states 'Unaudited' above the statement of operations and balance sheet. On the other hand, they present GAAP-figures. As far as my practical knowledge of working with accountants go, they would frown quite heavily upon using 'new and improved' accounting methods for their Q3-update. Even for 'unaudited' GAAP-figures 'we' (investors) should be able to expect a continuous accounting practices from the firm. But it's good practice to read any statement of an accountant dilligently (ever read an ISAE-statement?) and read non-audited statement with even more caution.
- appleiigs 8y ago
  For a public company the size of Tesla, unaudited will be the same as audited. Sometimes in the MD&A, they use adjusted figures because it tells a story differently (maybe more accurately) than un-adjusted GAAP figures.

samfisher83 8y ago

I agree Earning and cash flow can be manipulated. To improve cash flow just don't pay your vendors for a quarter. To improve earning you can shift they delivery time from 1q to another. It did look AP went up for Tesla by about 500mil so did AR which is kind of strange, but their Quarter still looked great.

ianai 8y ago

Churn should be a strong indicator of managerial issues. But I think it’s not because of how much wealth companies and certain people amassed.

wjnc 8y ago

I had the same feeling. Could use an accountant chiming in here. On the one hand the third quarter update clearly states 'Unaudited' above the statement of operations and balance sheet. On the other hand, they present GAAP-figures. As far as my practical knowledge of working with accountants go, they would frown quite heavily upon using 'new and improved' accounting methods for their Q3-update. Even for 'unaudited' GAAP-figures 'we' (investors) should be able to expect a continuous accounting practices from the firm. But it's good practice to read any statement of an accountant dilligently (ever read an ISAE-statement?) and read non-audited statement with even more caution.

appleiigs 8y ago
For a public company the size of Tesla, unaudited will be the same as audited. Sometimes in the MD&A, they use adjusted figures because it tells a story differently (maybe more accurately) than un-adjusted GAAP figures.