It's very easy to manipulate financial results without illegally cooking the books.
It all comes down to timing when you incur/pay expenses and when you record sales. Tesla has openly engaged in this in prior quarters, which is why their stellar quarters are usually followed by abysmal quarters.
Cooking the books would involve changing the actual numbers. Not many people are alleging this.
When do I book this x million of parts? I could book it even we reserve the shipment (accelerate expense) or when we receive the invoice (standard) or when we pay it several months late (defer the expense).
And that's just one transaction that feeds into one line item. There are a lot more opportunities to play with the financial numbers.
>cash flow, and cash on hand are hard to manipulate
Cash flow and cash on hand can be easily manipulated by not paying bills.
Net Income can be manipulated one-time items.
This will all come out in the 10Q, but in the meantime, Elon realiszed that people will not lend money to cash-burning "startups", so we get another "profit".
I didn't use the term "cooking", but I agree, which is why I don't take the numbers at face value.
Also, why does Elon get a pass with the China stuff? Here we are in a trade war with this country, who consistently attacks our IT, economy and culture, who are commiting atrocities in their own country, and yet Musk is given kudos for building factories and raising money over there from the "save the planet" crowd. Astonishing.
It all comes down to timing when you incur/pay expenses and when you record sales. Tesla has openly engaged in this in prior quarters, which is why their stellar quarters are usually followed by abysmal quarters.
Cooking the books would involve changing the actual numbers. Not many people are alleging this.