I'm not sure about the whole detail of capital assets and how they affect the balance sheet, but I assume that once Gigafacgtory 3 is complete it will become a large financial asset on the ledger??? Not sure exactly how that works in P&L though.
Yes restructuring cost plus R&D are more than the losses. Restructuring charge was higher than normal but there always seems to be some restructuring, so some level of this may continue in future.
The only way capital costs like buildings hit the P&L is as depreciation and that won't start til building is brought into use.
I would expect stage payments on a construction project and I am not sure whether these go into
Property, plant and equipment on the Balance sheet, or elsewhere on balance sheet. There is a new line on the balance sheet:
Operating lease right-of-use assets 1,248,277 —
My first thought was this related to car leasing, but that doesn't really fit with the title and there is a separate line for operating lease vehicles.
Looking more closely at the assets:
Property, plant and equipment, net 10,082,458 11,330,077
is lower at 30 June than at 31 Dec by $1.25bn.
The depreciation amortisation and impairment for that 6 months is $1.045bn.
The 'Capital Expenditures' add up to $530m.
Not really getting this to add up, but it makes more sense if 'Operating lease right-of-use assets' is regarding the Shanghai buildings. From this, it sounds like they will be just renting the land but paying for the construction of the buildings.
Looks like it had been included in Property, plant and equipment line but from March 2019 was separated out. Perhaps there was a change of plan to this operating lease arrangement.
Not sure if this is common in China. I have concerns about this: If the land owner is the Chinese Govt, then they are all encouraging to Tesla to start. Once the building is built, are they then keen to see Tesla fail so they get the building for free? The building might be pretty unimportant compared to having Tesla around so perhaps it is OK.
