Tesla has $1.4 billion that seems to have gone astray, potentially raising questions about the company’s controls

• Elon Musk’s vision of reaching a Utopia operated by Tesla Robotaxis and the humanoid robot, optimus, are likely to take important money. Tesla spent $ 6.3 billion in Capex in the second half last year, but the gross value of the company’s related assets increased to $ 4.9 billion. Those numbers must be tally for domestic companies that do not have any major sales or asset damage, but other factors can play for Tesla.

Tesla makes A lot of bets To AI, but Investors There may be a reason to ask where the money goes. If left unexcused, a $ 1.4 billion difference between the company Capital expenditures and the appreciation of the goods initiated with money, first reported on Periodic Periodcan excite concerns about internal electric vehicle control vehicles in Elon Musk.

A number of accounting experts say that there are reasons to justifications for the variance that may not show in Tesla’s Financial Statements. You will look forward to the relevant numbers to add for a domestic company with no major asset sales or disabilities, a professor of Erre Partner account with Ernst & Young. Tesla, of course, sold cars around the world and have factory factory on three continents. The PWC has auditor Tesla financial statements from 2005.

“If they have numbers incorrectly, then that can be a red flag associated with controls,” Morrison said, leading to the inspections of the audit’s incidence of the audit Ey.

This is not the first time in Tesla’s Accounting Self-Out Asked, Garrett Nelson, a Vice President and analyst in the Equity Equity of CFRA research.

“Let’s see if PWC or the company gives clarity,” he wrote to an email to wealth.

Tesla and the big four companies did not respond to a request from wealth for comment.

Tesla parts have lost half their value from their post-election high to $ 490 marks in December. The company puts nearly $ 750 billion in the trummeting sales cap and Fears Musk’s what white White House ill Brand and disrupted him from his paper as CEO of Tesla.

However, stock rally last Friday, however, after musk makes an emergency all hands meeting to employees. Bullish investors Believed that Tesla is more than a storage company in EV and battery, speak Vision of musk To use AI to waste a Utopia run by Tesla Robotaxis and the Humanoid robot, Optimus.

Implementing that plan may require significant investment. In the latest COMPANY COMPANY in January, CFO Vaibhav Taneja said that $ 11.3 billion in Tesla is $ 2.4 billion from 2023 – must remain flat this year. AI-related company related to the company, he recognized, which is more than $ 5 billion marks.

“Capex efficiency is something we focus is very focused,” says Taneja. “As we invest in AI-related initiatives, we have done this in a timed way to use the expenditure to get the benefits immediately.”

Accounting for a $ 1.4 billion mystery

Spending shows annual cash flows statement as property purchases, plant, and equipment, or PP & E. In the second half past year, that amounts to the $ 6.3 billion, Tesla reported Slide Deck for investors.

But the gross amount of PP & E, or value before the recount for reduction, increases $ 4.9 billion to that length. Again, for a domestic company, you can expect tally numbers.

There is no evidence that any PP & E, Morrison proved, and the company does not recognize any failures of “long-lived residents available for more than a year.

Foreign currency Changes, instead, can drop everything. If the euro is weakened in the dollar as it was done during the period, Morrison explained, the properties of the company facilities in Germany were marked.

“You can’t see [it] Anywhere else in financial statements, “he said.

While the Periodic Period It is said that foreign exchange appears to be “cannot explain the gap,” mentioned that four-fifth properties in Tesla are in the US, Morrison said it could still explain an important particle.

“The foreign currency can do many wonderful things,” he said, “and it is hard to keep track of it.”

Finally, he also knows the Tesla that can take possessions reached by the end of their useful life, which case this case knows when they are no longer in books.

“If the absolute reduction in the asset is expelled, the value of the asset and accumulated decreases will be written from the balance sheet,” according to a DEFINITION from the corporate finance institute.

In short, it is not time for investors who sound a ALARM about Capex in Tesla only. As the Periodic Period Noticed, as though the odd Tesla felt to raise $ 3.9 billion in new debt last year, provided the company sitting in a $ 36.5 billion cash pile and not paying a dividend. However, that kind of behavior can only be reasonable for a company to banning future growth, Morrison said.

Despite the recent stock decrease, Tesla parts still share the company 90 times the company’s company for the next 12 months, according to the estimates of S & P Cap IQ. To put this gentleness, bulls It is better to believe Musk’s investment will pay a big way.

This story originally shown Fortune.com

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