This is tom nash. And i promise. I'll do a deep dive into the the quarterly financials for general motors. As you can see on the screen.

This is 10 qs filed july 26. 2022. And also on the screen right now you'll see i have tesla's right here as well just as a comparison. This is the tesla's and we're going to use it side by side to show you how gm is doing relative to tesla.

Now look. I'm just going to say it right here right now tesla has its problems and quite a lot and i'm going to highlight them in this video. I'm not going to sugarcoat it and i think on the flip side of it gm is really not being fairly analyzed by mainstream media. I think they're getting a basically a free pass at this point and all i want to do in this video is be completely fair and objective.

So i've done a lot of work to prep for this video. So let me just show you the numbers and let the numbers speak for themselves. I'm not going to offer like any extra commentary and i'm just going to give you the information and you decide for yourself so look let's start with the good stuff right as you can see right here. The automotive uh net sales for for for gm have increased by nine and a half percent and i'm not being cynical.

Here. This is not a bad thing. I mean for a company like gm. Which is a company that's not in growth stage.

A 10 increase in the first six months of this year compared. The first six months of last year. It's not bad at all i'm just being honest. I'm not being cynical not bad.

However and here's where i think the problem starts if you look at their cost structure. There's where the trouble lies if you look at the cost structure you find out their cost of goods went up by 12. If you look at here sgna went up by 22 percent things begin to look a little. Murkier and if you look right.

Here a total blended rate of 115. Increase in cost so their costs are increasing at a faster pace than the revenues. So if you look right here revenues are increasing nine and a half percent right costs are eleven and a half you cannot be in business. If your costs are rising faster than your revenues.

Because this is basically a surefire way to go out of business. And if you look at operating income right here. You'll see that it's down thirty percent in the first half of last year. They had operating income of over six billion dollars right now that over four billion dollars.

So operating income is being chewed up by this cost structure 30 down. That's a big booboo now how bad is this well let me show you this is actually the i want to show you here testless. Okay. So tesla has a basically kind of like a mirror image of that if you look at automotive sales.

Let's focus on automotive. Sales right. Here right so automotive sales. For tesla went up from.

177 to 291. This is essentially a 65 increase in the first half of this year compared to the first half of last year. Now total revenues are up 60. So that's pretty much you know because that's the most dominant part.

So you would kind of expect that however. And this is the problem for tesla. Tesla is suffering from the same problems that gm is suffering things are more expensive. And as you can see tesla actually had an increase of 55 in their uh automotive sales costs.

So the basically the the cogs the cost of goods for automotive sales went up by 55 as you can see right here actually wrote it down similar problems. But to tesla's defense again. We have to show both sides of the of the coin right tesla has the same problem. It's too expensive their margins are not that great.

But tesla is still um. You know they can get a little break. Because they are ramping up two new factories. So that cuts into this margins quite significantly because you know it's just it's economies of scale once berlin and austin rem pop.

We can actually see the real numbers here. But still but still i'm going to say right now still 60 55. Still 60. 55.

So clearly tesla still has five percent more in growth of sales versus the growth of expenses and if you look at cost of revenues. Right here you'll see that it's up from. 172 to 259. Again massive increase.

But because tesla is growing faster in their sales compared to their um costs. That's why you see a gross profit increased by 90 right went up from five to 96. Uh. Despite the increase cost so that because again as long as you can grow your sales faster than your costs.

This is what you're going to get now if you look at income from operations. You remember when i showed you for gm how it's down 30 in the first six months of last year tesla did 2 billion. That's from operations income from operations in the first six months of this year tesla did 6. Billion.

That's a 3x on their income from operations compared to the first half last year. So while gm is losing 30 tesla is just triple theirs. So just to show you the magnitude of the difference. Now let's scroll down.

And let's go to the balance sheet. Because in the balance sheet. There's a lot of interesting things i want to show you now gem is again has to take a beating here because it's just it's it's clear look the cash position as of the end of previous year. Was 20 billion dollars as of the end of the first half of this.

Year it's down to 167 16. Less cash so they're bleeding cash as you would expect with a company that's um increasing their costs way faster than they should be right now let's focus on this thing right here now this is where i want to give gm a pass. I think this would be unfair to attack them on increase in revenues in the inventory. Sorry in the inventory section.

You can look at gm. And say well they had 13 billion in revenue in inventories by the end of last year. Now they have 17 well they can't move cars. Look.

Gm. Admittedly reported. You know that they said it hey we're str. We're stuck with so many cars.

We can't sell because and we're lacking you know parts and raw materials to finish the cars because of the supply chain issues. But that is not a gm. Problem. That's a global automotive problem in fact tesla suffer from the same problem.

If not worse. If you actually go to tesla's balance sheet. You'll see it quite clearly so this is tesla balance sheet let's go to assets let's go to inventory. So tesla's inventory went up for the same period end of last.

Year the first six months of this year went up from. 57 billion to 81. Billion. That's an increase of 40 percent.

Even higher gm only increased 30 percent of inventory. Tesla increased 40. So tesla is suffering from the same problems. Gm does in fact gm seems to be doing a better job at moving cars than tesla.

Because tesla has way bigger inventory at least like they're on par. So this inventory increase is going to cut away into the business. But it's not gm's fault. It's just the way the you know the supply chains are so this is not on them let's be fair about this what's what is on them is the cost of their assets versus liabilities because this is not as good as i even remembered myself so if you look at tesla just for the comparison and let me show you so.

This is tesla. So tesla is looking at this is the balance sheet at assets of 68 billion over liabilities of 30 billion. Right so that's 226. That's the ratio 68 over 30.

So they have more than twice more assets than liabilities. They're very stable if there's any problems they are easily able to repay their debt and whatnot right gm is in a whole different enchilada. So gm has way more assets 253. Billion however the ratio right here as you can see is 14.

So they are not as bad as some. Companies i mean i've seen much much much. Worse but 14. Isn't amazing.

It isn't something to write home about the bigger problem is if you look at their cash. They have 16 billion in cash and they have 16 billion in automotive debt alone. So just the automotive debt is basically one to one with the cash now. If you add in more liabilities.

They have like look. This is not really exactly a debt in the classical sense of the world they have 62 billion. But that's gm financial that's part of their leasing business and financing business. But it's still a risk.

I'm not going to include this in my calculations so for me the ratio for them is one to one. But look gm is still carrying gm financial debt. It's 62 billion and in this economy. A lot of people will default on auto.

Loans. And the 62 billion will become a big problem for gm. Even though. It's not gm directly gm financial.

But you understand this is a major red flag to carry so much money on your balance sheet of debt for auto payments from a lot of potential defaults this year. This is going to be a problem so that's another red flag. You need to be aware of because they will not tell you this in mainstream media. Right if you add up like the 16 and the 62 and there's also right here 31 from gm financial like there's 92 billion dollars in gm financial debt on the books and another 16 from gm so there's a lot of debt over 100 billion dollars in debt.

Here. Now if you go to. Tesla you see a huge difference first of all their debt is 29. And it's literally.

It's let's say three three billion and they have 15 in cash. So um yeah. So sorry they have how much 17 18. So they have 18 in cash.

So that means they have 15 over yeah. Okay okay. I got it yeah. So they have 15 billion more cash than debt right.

And if you look at it here that in the previous six months of last year was. 52 they're actually reducing their debt from 502. To 29 and they're increasing their cash from. 175 to 183 uh mild increase only four percent but still an increase you remember gm is down.

16 tesla's up four percent now i show you this part now look what else do we want to see here. I guess. That's now let's go to the comparison table because this is very interesting before we do i do want to show you something really interesting. I had it here um yeah.

Look this is not good net cash. Provided in operating activities net cash is down 38 for gm. I mean. This isn't brilliant and let's see if you have anything else from gm and then we'll go to the comparison table.

I don't think we have anything else okay let's go back to the comparison table. Okay so what i've done i've actually prepared this excel spreadsheet and in this excel spreadsheet i'm going to use every single data point gm versus tesla to show you the difference the good and the bad so first of all gem. And let's be fair about it is selling twice more than twice the vehicles of tesla. Still so jam has in the first sorry in the second quarter of this year gm sold 600 000 vehicles right or close to 600 000 vehicles tesla only sold 250 so they're still making more vehicles let's be honest about it okay.

However and here's where you see the problem. Okay automotive revenues for the first six months of 2022. Which means this year compared to automotive revenues for the first six months of last year. Okay okay remember this is gm and this is tesla just so we can see it on.

The screen okay so gm went. From 598 to. 654 they've increased increased their automotive revenues by 94. Percent.

We talked about it tesla increased theirs to 64 by 64. Let's say 65. But look at the numbers. Here.

Okay tesla is currently at half the revenues of gm right. But it previous year for the first six months. It was at approximately one quarter. So they went from one quarter of gm to one half of gm in just a year that's not an easy.

Thing it's because they're growing at 65. Percent not at 94. Now this is the more interesting part look at the costs. Here.

And this is really interesting so the cost for the first six months of this year versus. The first six months of last year. Gm has increased their cost by 11 and a half percent first six months versus first six months tesla by 50 from 17 to 26. However because tesla increased their sales by 65.

They're in they're like all gucci gm actually is increasing costs faster than sales that's not good now here's where i'll show you why i think tesla has already passed gm even on the accounting side of things look. This is net income for the first six months of this year versus the first six months of last year. So let's look at the first six months of 2021. Gm did almost 6.

Billion tesla did. 16. Billion there's no comparison right gm just did. 58 billion in net income tesla did.

16 there's no comparison one year later gm is. Down 23 to. 44 tesla is up 238 to 55. So net income not talking percentages net income tesla has more net income than gm okay they're selling half the vehicles they're still not as big.

They now have more net income than gm and significantly more and they're growing at insane pace. Now if you look at the cash. Right. Here.

Again tesla is growing cash gm is losing cash now. This is the part where it's it's really like risky. There's a lot of risk on the gm books because of the debt now look. I've excluded the 62 million.

That's the long term. If i add in the the gm long term finance debt it's another 32. So this is like a 94 billion dollar debt. But let's exclude it just even without it look gem is sitting one to one their debt to uh cash ratio is 103 basically just enough to repay their debt tesla is at 63.

Tesla has more than six times more cash than debt. You understand what kind of level of security. It gives you as a company for bad times ahead again look at the assets as well right assets versus liabilities right. 22 this is the ratio for tesla 14 for gm however and here's where i have to you know show the flip side.

All this is nice and dandy. But here's the but here's the real question right here. And this is for you to decide not for me. The market cap.

Which is basically how much these companies are valued in the public market gm is valued 16 times cheaper than tesla. So it is what it is right so tesla's valued at 800 billion gm is at 50 billion. So the question is based on everything you've just seen. I think it's very hard to say that gm is the better company tesla.

Obviously tesla seems like the way better company. But is this 16 times more company than gm that's for you to decide i don't know i just showed you numbers you decide comment below let me know what you think and i'll see you guys next.