Brexit and FSD

[james_power]

I don't really want this thread to be about how stupid it is to purchase FSD right now. I get it, you're probably right, its stupid right now (given Elon's comments about Europe and FSD at last nights earnings call).

The questions i have are:

1. What happens to the EU regulations for vehicles when we exit the EU?
2. How long after we exit the EU, do the current EU regulations remain in place (or do we just adopt them as they are now?)
3. How likely is it that the UK regulators relax the regulations (and how long would that take?)

 

[TomD]

It is all a guess. But I very much doubt it will have any impact in the short term (next 3-5 years) at all.

 

[Peteski]

1. They simply translate over into uk law unchanged

2. Probably forever

3. Highly unlikely in any sensible timeframe.

 

[Tony Hoyle]

They're ultimately UNECE rules which we are independent signatories to. We just implement the EU version of it because it wouldn't make sense to make our own when there's one already there.

So no matter what happens the rules remain the same until changed, and brexit won't affect it at all.

 

[dst87]

given Elon's comments about Europe and FSD at last nights earnings call

I'm obviously out of the loop - do you have a link to information about this?

 

[dwfin]

I'm obviously out of the loop - do you have a link to information about this?

https://seekingalpha.com/article/42...musk-q2-2019-results-earnings-call-transcript

 

[dwfin]

Mildly related to both questions and hopefully not too accountancy related, does anyone understand what they mean about the revenue recognition associated with FSD? Is it in context to their long term margin guidance? When I hear things like that it always reminds me of the Enron days

 

[james_power]

I'm obviously out of the loop - do you have a link to information about this?

There was a liveblog on teslarati here LIVE BLOG: Tesla (TSLA) Q2 2019 earnings call updates

Simon 16:30 PT – RBC Capital Markets asks if Elon Musk expects to offer the full FSD suite in Europe and China, considering regulations? Elon notes that yes, he is expecting a worldwide FSD release. EU will likely be an exception though, as the region’s regulations are quite notable.

 

[dst87]

There was a liveblog on teslarati here LIVE BLOG: Tesla (TSLA) Q2 2019 earnings call updates

Simon 16:30 PT – RBC Capital Markets asks if Elon Musk expects to offer the full FSD suite in Europe and China, considering regulations? Elon notes that yes, he is expecting a worldwide FSD release. EU will likely be an exception though, as the region’s regulations are quite notable.

Thanks for that. It's frustrating, as there are some nice features in the FSD package but the overall deal is still priced in Europe as if it's going to offer more than it is.

I'd like to see a price adjustment down in the EU / UK in consideration of this, or at least some of the more common features (like auto park) moved into the basic Autopilot system.

Oh look! A flying pig!

 

[Jellus]

Oh look! A flying pig!

That's the new Auto Pork feature.

 

[Peteski]

Thanks for that. It's frustrating, as there are some nice features in the FSD package but the overall deal is still priced in Europe as if it's going to offer more than it is.

I'd like to see a price adjustment down in the EU / UK in consideration of this, or at least some of the more common features (like auto park) moved into the basic Autopilot system.

Oh look! A flying pig!

They should re-introduce EAP as an intermediate level. But they failed to differentiate EAP from FSD for the years it was available i.e. Not a single FSD exclusive feature was ever added. It's amazing they got away with it when you think about it!

 

[goRt]

Brexit and FSD - neither will happen ;-)

 

[Baldrick]

https://seekingalpha.com/article/42...musk-q2-2019-results-earnings-call-transcript

If you don't want to sign up...

Elon Musk -- Chief Executive Officer

Yeah, we expect to be able to offer full self-driving actually everywhere, except EU because there's just some committee rules that were put in place years ago that needs to be changed. It's up -- from a technical standpoint, it's very doable, but we just need to work through the regulatory committees to get the regulatory approvals and rules changed. It's just -- it all just takes a bit longer than other places. But I think we'll see a lot of pressure from our customers in Europe to have these rules changed so they can have access to full self-driving. And I think at the end of the day, the regulators will answer to the public. So I think it's just a temporary thing and it's as quite specific to the -- to EU rules, and we're just not present really when those rules were drafted. So that's we got to put in place. But they're making a ton of sense, but we just got to work through the process to change them.​

 

[Rooster6655]

Mildly related to both questions and hopefully not too accountancy related, does anyone understand what they mean about the revenue recognition associated with FSD? Is it in context to their long term margin guidance? When I hear things like that it always reminds me of the Enron days

Hardly anything like Enron quite the opposite, they have not recognised the payments for FSD fully yet because it’s not ready. As FSD features are rolled out they can count a percentage of the revenue they received for FSD until it is fully ready.

 

[goRt]

Hardly anything like Enron quite the opposite, they have not recognised the payments for FSD fully yet because it’s not ready. As FSD features are rolled out they can count a percentage of the revenue they received for FSD until it is fully ready.

You capitalise the costs of software development and show them in the accounts over the lifetime of the software, but any reprofiling of the project can have major impacts on the accounts in the period declared.
We don't get the accounts at a level of detail to see what's going on

 

[goRt]

Mildly related to both questions and hopefully not too accountancy related, does anyone understand what they mean about the revenue recognition associated with FSD? Is it in context to their long term margin guidance? When I hear things like that it always reminds me of the Enron days

Enron recognised all revenue associated with a sale at the time of the sale rather than profiling it to match the cost profile. Tesla seems to be doing things correctly (in this context), has it budgeted the correct cost to deliver FSD or is it miles out causing a big accounting impact when there's a replan?