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if this is indeed a Tesla subsidiary, it’s accounting fraud

by xoxoy 6y ago

recuter 6y ago
How could it possibly be? Tesla had $100M+ of scrap inventory they pretended was still good and then somehow created a subsidiary out of thin air and "sold" the scrap to it? I don't understand where the $100M the subsidiary paid materialised from. How is any of this possible. What's preventing others from having secret fake subsidiaries and printing money out of nowhere?
- maxerickson 6y ago
  Funding such a fraud could make sense for holders of large amounts of Tesla stock. Spend $100 million to prop up billions. Note that I'm commenting in the abstract, not commenting in support of fraud as an explanation. I have no information or opinion about this battery recycling company.
- xoxoy 6y ago
  I mean it’s hardly a secret if it’s on the cover of WSJ. The question is who funded this company and what transactions have they made with Tesla? but obviously no one will tell you those two things.
- pbhjpbhj 6y ago
  How about M invests $100M in company B, he writes them a cheque, company B purchase waste from company C for $100M, by cheque. Company C loan M the money, by cheque, or give him it. M isn't out any money. B has a lot of waste to process, batteries maybe. C has $100M extra on their balance sheet. There'd be some wastage: capital gains taxes, ancillary costs. Does that kind of thing work?
bob33212 6y ago
All corporate accounting has some amount of bending the rules. Conferences and team meetings at high end resorts which are not counted as compensation for example. The rules exist because of people like the Enron bean counters who spent their time and energy scamming the system rather than actually building something. It is fine if you don't like Elon or how he runs his company, but it is absurd to suggest that this is a shell company and not an actual effort to improve recycling technology.
- est31 6y ago
  Such rule bending didn't end well for Wirecard.
- xoxoy 6y ago
  Why is it absurd when it’s run by the former Tesla CTO? I mean it couldn’t be less clear what the relationship between this company and Tesla is. Did Tesla fund this company? Or Elon? What transactions have taken place between Tesla and this co?

if this is indeed a Tesla subsidiary, it’s accounting fraud

by xoxoy 6y ago

if this is indeed a Tesla subsidiary, it’s accounting fraud

How could it possibly be? Tesla had $100M+ of scrap inventory they pretended was still good and then somehow created a subsidiary out of thin air and "sold" the scrap to it? I don't understand where the $100M the subsidiary paid materialised from. How is any of this possible. What's preventing others from having secret fake subsidiaries and printing money out of nowhere?

maxerickson 6y ago
Funding such a fraud could make sense for holders of large amounts of Tesla stock. Spend $100 million to prop up billions. Note that I'm commenting in the abstract, not commenting in support of fraud as an explanation. I have no information or opinion about this battery recycling company.
xoxoy 6y ago
I mean it’s hardly a secret if it’s on the cover of WSJ. The question is who funded this company and what transactions have they made with Tesla? but obviously no one will tell you those two things.
pbhjpbhj 6y ago
How about M invests $100M in company B, he writes them a cheque, company B purchase waste from company C for $100M, by cheque. Company C loan M the money, by cheque, or give him it. M isn't out any money. B has a lot of waste to process, batteries maybe. C has $100M extra on their balance sheet. There'd be some wastage: capital gains taxes, ancillary costs. Does that kind of thing work?

bob33212 6y ago

All corporate accounting has some amount of bending the rules. Conferences and team meetings at high end resorts which are not counted as compensation for example. The rules exist because of people like the Enron bean counters who spent their time and energy scamming the system rather than actually building something. It is fine if you don't like Elon or how he runs his company, but it is absurd to suggest that this is a shell company and not an actual effort to improve recycling technology.

est31 6y ago
Such rule bending didn't end well for Wirecard.
xoxoy 6y ago
Why is it absurd when it’s run by the former Tesla CTO? I mean it couldn’t be less clear what the relationship between this company and Tesla is. Did Tesla fund this company? Or Elon? What transactions have taken place between Tesla and this co?