Ah…I rewatched 10-k because I was

Ah…I rewatched 10-k because I was annoyed by Tesla accounting fraud news, and the answer came out in less than 5 minutes. It’s just a bad guy.

As you can see in Table 2 below, PP&E investment increased by $6.3B in December compared to June last year, as shown in FT. But Gross PP&E increased by $4.9B. So, where did $1.4B go? And when you make these large investments in facilities, you get advance payments, depending on the type of transaction. It’s kind of paying first to get the facilities first.

So looking at the Prepaid Expense, the amount that only increased from 22 to 23 years to 447 million dollars goes from 23 years to 2.0B (Table 1) in 24. This amount is bound to come from the investment. In other words, we paid the advance payment and asked them to build the facility. This shows both the first and second half of the year. If you look at Table 2, the increase in the second half of the year is 1.04B. For example, Samsung used the same method when ordering ASML’s EUV equipment. It’s in the form of paying the advance payment first, then paying the intermediate payment and the balance.

Anyway, if you add the increase in Gross PP&E to the increase in Prepaid, it’s similar to the funds that went out of the PP&E investment in the second half of the year (Table 2 Total). The same is true on an annual basis (Table 1 Total). There’s no way you didn’t know this. I just wrote it maliciously on purpose.

I won’t answer the second point, “I have a lot of cash, why would I borrow funds?” It’s a trash question…