Overview

• The Financial Times initially reported a $1.4 billion discrepancy in Tesla's financial statements, raising concerns about potential irregularities.
• On March 25, the Financial Times issued a correction, explaining the discrepancy through non-cash investing activities, asset disposals, and other accounting factors.
• Tesla's stock price, which had dropped significantly following the report, rebounded by 27.5% after the correction was published.
• Elon Musk criticized the Financial Times for its initial reporting error, suggesting the publication lacked financial expertise.
• The incident has sparked broader discussions about the role of media in financial reporting and the importance of trusting auditors' evaluations in complex corporate finances.