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Deferred Autopilot Revenue

Discussion in 'TSLA Investor Discussions' started by uselesslogin, Feb 8, 2016.

  1. uselesslogin

    uselesslogin Enthusiast

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    I'm hoping someone can save me time here. There is this line from the Q4 2014 shareholder letter:

    "The average selling price of Model S increased during the quarter, but not as much as expected given the late introduction ofP85D, the effect of the strong dollar on foreign sales, and the deferral of revenue related to additional Autopilot functionality thatwill be implemented in future software releases."

    Is this a non-GAAP deferral? Since Autosteer was released in October will this affect earnings for Q4?

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    The thing is that is $60 million if the deferred $1,000 per car for Autosteer and recognize it is Q4 on 60,000 cars. That would make quite a mark on non-GAAP earnings if it was deferred from there previously.

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    I completely give up. For now I will have to assume this is only a GAAP deferral. Unless someone has evidence to the contrary. Oh well.
     
  2. hockeythug

    hockeythug Active Member

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    I'll cross post this from the ST thread as this is some what interesting.

    They mentioned it was affecting(lowering) their Non-GAAP margins:

     
  3. uselesslogin

    uselesslogin Enthusiast

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    Thanks, so on the one hand 100 basis points is equal to $1,000 per car or so maybe as little as $500 was deferred per car. However, it could be that the margin would have been 100 basis points above guidance had they not deferred the revenue. There is no way to really know I guess but either way some of this revenue should be recognized from 60,000+ cars.
     
  4. hockeythug

    hockeythug Active Member

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    I think this might get into software revenue recognition which from what I remember from school was sort of complicated.
     

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