Tesla is simply selling the rights to the multi-decade solar system receivables in return of cash now. This is nothing new and has nothing to do with Tesla Energy “ramp.”
This type of transaction is not new, but I think it bodes well.
Non-CPA opinions coming:
This is sort of equivalent to selling land for cash v.s land contract. Both are profit, but one gives you cash today you can do something else with. (You could also get a loan against the future income from the land contract, I suppose)
Depending on agreement, higher cash and lower liabilities, should example in Q3 numbers.How is this reported within quarterly financials?
Does this indicate Tesla Energy is ramping or are there other factors?
It means that TE is able to turn the expense of a solar installation back into cash now, verses long term lease payments. Depending on numbers, it could have a net positive cash effect after expenses. It gives TE more funds to do more installations (faster turn around/ build rate)
I think most analysts are using a low value for TE (if any). Showing the ability to monetize solar installations within a quarter enables TE to grow faster.Do you think this is priced in to the stock price at all?