Has anyone looked over the TSLA Balance Sheet (B/S) they reported last week? If so, can someone explain why Accounts Payable (A/P)/Accrued Liabilities rose 59.3% and Inventories rose 62% YOY? As a prior CPA, I know the B/S is perhaps the the most important piece of paper to review when when evaluating a company. I'm very perplexed by the changes in these two line items and cannot find an explanation to these material YOY changes. From my understanding, there is a very, very long wait if you order a car from TSLA so how does inventory increase by 62% YOY? (Line item taken from Inventory reported: $4,132 vs. $6,691).
In regards to A/P & Accrued Liabilities...those now stand at $17,077 in total. Typically A/P is money due in the very short term and Accrued Liabilities are due within the year. Last year the total of these two line items was $10,721. So A/P & Accrued Liabilities have increased 59.3% and Cash, at $17,505, only increased 2%. So after paying A/P & Accrued Liabilities that would leave Cash at $428.
From a monthly charting perspective, in Jan 2020 TSLA broke out from it's $77.49 resistance level and has since taken the (vertical) stairs up to its current high at $1243.49 in 23 trading months (FIB=21+2). In Feb 2022, TSLA closed below the monthly Tenkan Sen line which gives a warning to the bulls. It also did this in March 2020 and we know what happened afterwards however the macro environment from the FED & policy makers have changed.
I will be taking a very, very small short position this week based upon the above (2% of total capital with a SL at 8% above my entry) and will re-assess at months end. IMO, if we close months end below the Tenkan Sen line again, or below 946.16, then I will remain in bear mode on TSLA as that will indicate more downside risk for the bulls.
In regards to A/P & Accrued Liabilities...those now stand at $17,077 in total. Typically A/P is money due in the very short term and Accrued Liabilities are due within the year. Last year the total of these two line items was $10,721. So A/P & Accrued Liabilities have increased 59.3% and Cash, at $17,505, only increased 2%. So after paying A/P & Accrued Liabilities that would leave Cash at $428.
From a monthly charting perspective, in Jan 2020 TSLA broke out from it's $77.49 resistance level and has since taken the (vertical) stairs up to its current high at $1243.49 in 23 trading months (FIB=21+2). In Feb 2022, TSLA closed below the monthly Tenkan Sen line which gives a warning to the bulls. It also did this in March 2020 and we know what happened afterwards however the macro environment from the FED & policy makers have changed.
I will be taking a very, very small short position this week based upon the above (2% of total capital with a SL at 8% above my entry) and will re-assess at months end. IMO, if we close months end below the Tenkan Sen line again, or below 946.16, then I will remain in bear mode on TSLA as that will indicate more downside risk for the bulls.
Comment:
Month end closed below my target of $946.16 but it did close a little above the monthly closing support of $870.43. I am still bearish on TSLA but expect May could see a counter-trend that, IMO, should not go above the earnings high of 1092.22. Any SL should be at or a little above earnings high.