Cross-post: SEC inquiries may explain Tesla's release of $5.9 billion tax valuation allowance
SEC issued comment letters to Tesla questioning its accounting for a deferred tax valuation allowance. The SEC was on the case one day after an earnings release disclosed billions in unexpected NI.
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Companies make substantial changes in their accounting and disclosure in response to SEC comment letters, and academic literature confirms that1. A material and unexplained accounting change may mean a regulato…