Tesla Will Look Better on Paper Thanks to Accounting Change (1)

Tesla Inc.’s balance sheet could soon appear healthier because of accounting rule changes, potentially making it easier for the debt-laden carmaker to obtain needed financing.

Tesla told investors in a recent filing that it expects new lease accounting rules this year will reduce its assets overall by as much as $500 million, with a similar reduction in liabilities of up to $600 million.

The decrease is unusual, because the balance sheets of most companies will grow under the new lease accounting rule, which requires companies to report operating leases on their balance sheets for everything from bank branches to airplanes ...