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TSLA - Reality: 1. The Capital Efficiency Illusion

Tesla presents as extremely capital-efficient, but:
• Subsidies & Tax Credits: Tesla has benefited from billions in government tax breaks, green energy subsidies, and regulatory credits—often underplayed in earnings discussions.
• Regulatory Credits: In some years, Tesla’s entire profit came from selling zero-emission credits to other automakers, not from actual car sales. Without those, some quarters would’ve been negative.



2. Depreciation & R&D Spend

Tesla’s accounting methods also smooth out their costs:
• Capital Expenditures (CapEx) for Gigafactories are depreciated over years, so the real-time costs don’t hit the income statement all at once.
• R&D Spend is relatively low compared to traditional automakers (~5% of revenue vs. 10–15% at some legacy firms), raising questions about how innovation is sustained.



3. Inventory Accounting

Tesla uses “cost of goods sold” (COGS) in a way that doesn’t always reflect immediate manufacturing expenses. Some critics argue that:
• Costs are capitalized instead of expensed immediately, pushing profitability higher on paper.
• There’s limited transparency into how vehicle production and delivery delays affect the books.



4. Bitcoin and Other Financial Moves

In 2021, Tesla bought and sold Bitcoin, booking a large profit. That added to earnings—but wasn’t related to cars.

Similarly, selling equity during high stock valuations brought in billions without affecting debt—but inflates perceived financial strength.



5. Margin Compression & China Competition

By 2023–2024, Tesla started slashing prices to remain competitive with BYD and others. This hurt margins dramatically—Tesla’s net income dropped from 15B to 77B in a year.

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🚨 U.S. FISCAL CRISIS ALERT 🚨 From Tesla to Treasuries—Are We Nearing Default? 💸

Elon Musk just called out Western “empathy” as a flaw on Joe Rogan 🎙️… but the real drama is in the numbers. Let’s break it down 👇

📉 THE DEFICIT DISASTER

February’s Math:
307
B
s
p
e
n
t
💸
v
s
.
307Bspent💸vs.300B earned 💰 = 77B monthly shortfall.

Yearly? That’s $7 TRILLION 😱—23% of GDP! (For context: Germany spends ~35%, China ~33%).

GDP Trickery? 🤔 They’re erasing gov’t spending (like snow plows 🚚) from GDP stats. Private sector = GDP, public = ghosted. Sus.

💣 TAX CUTS = TIME BOMB

4T in tax cuts planned over 10 years 🎁… mostly for the top 10%.

Laffer Curve Myth? 💼 “Cut taxes, grow revenue!” they say. But slashing federal jobs = less spending power = worse deficits.

Shutdown Risk 🚧: Gov’t could literally turn off non-essential services this week. Chaos incoming?

🌍 GLOBAL BUYERS’ STRIKE?

Treasury Trouble: Foreign demand for U.S. debt is wobbling.

Canada’s “elbowing” us 🇨🇦👊.

Middle East tensions 😡 + Japan/Germany economic stress = less appetite for bonds.

Tesla Parallel 🚗: Sales down 12%, stock crashed 15% in a day. Why? Buyers vanished—no dump needed, just no new buyers.

Imagine this for Treasuries 😬.

💥 2008 FLASHBACKS

Banks like Goldman Sachs ran on 2% equity buffers before the crash 📉.

Today? Tesla self-insures cars 🤯—a red flag for over-leverage.

Default Risk? If deficits spiral + rates rise, a credit event (think: Musk margin calls or Treasury defaults) isn’t impossible.

🔥 BOTTOM LINE

Receipts ⬇️ + Spending ⬇️ = Deficit ⬆️.

Global trust in U.S. debt = shaky 🌐.

50/50 chance of default? Maybe not… but the math is SCARY.

🤔 THOUGHTS? Are we sleepwalking into crisis… or can we course-correct? 💬👇

(Drop a 🚨 if you’re worried, a 🧠 if you’ve got solutions!)
#Economy #DebtCrisis #USDollar #Finance

BTCUSD 77B Tether minted since the election, no worries I'm sure it's all backed 1:1

BTCUSD Why would anyone sell bitcoin? ever? why? Just buy and hold! It does nothing but cause regret from people not buying at a lower price... It can only go higher until all the buyers become exhausted...that is potentially 77B people...