[News Space=Reporter seungwon lee] While Tesla CEO Elon Musk, who is also serving as the head of the Department of Government Efficiency in the Trump administration, is making headlines around the world, Tesla's report card has been released in Korea.

Tesla Korea's sales performance was the best in both sales and profit, but there were warning signs in accounting and finance, and it is regrettable that the company paid out dividends of nearly 40 billion won as a parent company even in a situation where cash flow was difficult.

Tesla Korea Ltd. (CEO David John Feinstein, Kenneth Ernest Moore) was established on November 13, 2015 as a Korean subsidiary of Tesla, focusing on electric vehicle sales, charging sales, infrastructure construction, and energy storage system businesses. 

The current capital is 5.3 billion won, and Tesla International BV, a Dutch corporation, holds a 100% stake.

According to the audit report of the Financial Supervisory Service's electronic disclosure system on the 11th, Tesla Korea recorded its highest performance in sales, operating profit, and net profit last year, but controversy over accounting transparency is growing as it has received a 'qualified opinion' for five consecutive years in accounting audits.

Tesla Korea's sales last year were 1.6975 trillion won, a 48.3% increase from the previous year (1.1438 trillion won). Operating profit was 25.9 billion won, and net profit was 21.6 billion won, up 51.1% and 80.7%, respectively, showing growth in both appearance and profit.

However, despite the performance, there were still problems with accounting. Tesla Korea received a limited audit opinion this time as well. This means that it has received the same audit opinion for five consecutive years since 2020.

The key is the way the National Tax Service recorded the 25.1 billion won in corporate taxes collected in 2022 as “accounts receivable.” Tesla Korea considered this to be refundable through lawsuits and other means and recorded it as an asset. However, the auditor stated that he did not have sufficient evidence to support this.

Through the audit report, Taesung Accounting Corporation issued a limited audit conclusion, stating that "there is insufficient audit evidence regarding the possibility of a refund."

In addition, risk factors are noticeable.

First of all, there are four pending lawsuits (two patent disputes and two consumer contract disputes).

In addition, despite the debt ratio exceeding 1000% and the liquidity pressure and cash asset shortage due to the decrease in the distribution ratio, a total of 37.9 billion won was paid as an interim dividend in 2024. The face value dividend rate reached 714% and the dividend payout ratio also reached 175%.

In other words, net profit was 21.6 billion won, but this means that a much larger amount than net profit was paid out as dividends. 

Net income of KRW 21.6 billion was reflected in retained earnings, but due to dividends, retained earnings decreased by 36% from the previous year (KRW 45.4 billion) to KRW 29.1 billion. Undistributed retained earnings will be used as reserve funds to strengthen financial soundness along with capital surplus (KRW 14.2 billion).

As of the end of 2024, total debt was 558.5 billion won, total capital was 48.6 billion won, and the debt ratio was 1,149%. This is a 310%p increase from the previous year, and it is analyzed that the main reasons are the increase in long-term player earnings (18.6 billion won) and the expansion of current liabilities.

The current ratio, calculated as KRW 457.5 billion in current liabilities against KRW 490.5 billion in current assets, is 107%. It is a 78%p decrease from the previous year (185%), and despite the decrease in short-term borrowings (↓22.3%), the decrease in advance payments and the increase in receivables acted as a liquidity squeeze.

Cash and cash equivalents decreased by 62% to KRW 19.6 billion compared to the previous year (KRW 51.9 billion). This was due to cash outflows caused by interim dividend payments (KRW 37.9 billion) and investments in assets under construction.

Sales management expenses amounted to KRW 71.6 billion (up 5.3% from KRW 68 billion the previous year), of which KRW 19.3 billion was spent on salaries, KRW 14.3 billion on rent, KRW 4.5 billion on commissions, and KRW 4 billion on advertising and publicity expenses.