The ITEP report cited by the article calls out the fact Tesla uses the accelerated method of depreciation and amortization instead of the straight line method. This means instead of depreciating an equal amount every year over the course of a machine’s life, they are weighting these expenses more heavily in the near term in exchange for a lower expense (read: lower tax deduction) down the road. This Investopedia article explains it in more detail for those who care to learn more.
The ITEP report calls out other tax credits as well, such as carrying forward net operating losses from previous years. For anyone who cares, the full details are in their 2024 10-K filing. Open up the document, do a Ctrl+F search for “Note 13 – Income Taxes” and look at the tables on pages 80 through 82. I admit that there are several line items that I do not understand. I plugged them into Perplexity AI and asked it to explain them in layman’s terms. My brain’s too fried at this point, but I’ll leave the link to that explanation here (again, in case anyone out there cares to learn more).
The ITEP report cited by the article calls out the fact Tesla uses the accelerated method of depreciation and amortization instead of the straight line method. This means instead of depreciating an equal amount every year over the course of a machine’s life, they are weighting these expenses more heavily in the near term in exchange for a lower expense (read: lower tax deduction) down the road. This Investopedia article explains it in more detail for those who care to learn more.
The ITEP report calls out other tax credits as well, such as carrying forward net operating losses from previous years. For anyone who cares, the full details are in their 2024 10-K filing. Open up the document, do a Ctrl+F search for “Note 13 – Income Taxes” and look at the tables on pages 80 through 82. I admit that there are several line items that I do not understand. I plugged them into Perplexity AI and asked it to explain them in layman’s terms. My brain’s too fried at this point, but I’ll leave the link to that explanation here (again, in case anyone out there cares to learn more).