Analyst Notes Several Items from Tesla's (TSLA) 10-K Filing that Investors Might Find 'Concerning'

Tesla (Nasdaq: TSLA) is lower Monday following its 10-K filing made after markets closed last Thursday.

BofA/Merrill Lynch analyst John Lovallo touched on a few things earlier and Barclays analyst Brian Johnson is taking up the baton. The analyst noticed some concerning things about the filing and highlights the following key points:

• Tesla is building cars above and beyond what is just being ordered. This could indicate a drop in demand, though Johnson didn't speculate too much on what could be behind the increase in finished goods inventory.
• Capital spending hasn't been exclusively on the Gigafactory. Johnson noted that the Gigafactory will be a capital-heavy venture and, according to the 10-K, spending hasn't meaningfully started.
• Customer deposits now include pre-delivery payments, which will make it more challenging to estimate underlying order activity, according to Johnson.

As noted above, BAML's Lovallo also noted that Tesla may be materially underestimating the potential financial impact of its Residual Value Guarantee (RVG) program, particularly considering declining industry, EV resale values.

On a positive note, Johnson observed that the Model X beta prototype is now complete.

Tesla is down 3.3 percent.

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