1/ $TSLA's just-dropped 10-Q has no segment reporting on China, despite the clear requirements of ASC 280. This is a huge GAAP violation. Anyone investing in Tesla now is flying blind. Anyone underwriting a capital raise is committing gross negligence.
2/ Tesla's China subsidiary, Tesla (Shanghai) Co., Ltd., is the Hotel California for Tesla cash: Tesla must contribute $711 million (some in 2019, the rest this year), but is prohibited from touching any China cash for years to come...
3/ Worse, that subsidiary is now competing with Fremont. And it is doing with so lower labor costs and none of the massive legacy costs & problems hanging over Tesla in the rest of the world.
4/ This article explains all, including why segment reporting is mandatory (and a follow-up article adds even more detail): seekingalpha.com/article/433978…
5/ I am amazed that a Goldman Sachs ($GS) or Morgan Stanley ($MS), for instance, would allow its clients to fly blind into this storm. But with 10-Q dropping so quickly & the share price pumped so high by endless hype, lies, & omissions, that's what we're about to see happen.
6/ Yes, page 33 of the 10-Q shows total China sales on one line. It's completely inadequate to give investors any understanding of the dynamic between China & rest of Tesla.
7/ At a minimum, Tesla should disclose financial details of Tesla Shanghai as if it were a separate entity. It needs its own income statement. And, should disclose how much of the $711 million Tesla must still contribute...
8/ Tesla should disclose that the Land Grant contemplates two-thirds of production will be exported. And that the People's Republic of China can take the land back if Tesla fails to meet the lofty production goals. And can take it back in the "public interest" at any time.
9/ Here's Bill's criticism: 
