HW2 software tomorrow?

[TexasEV]

Whether the revenue is recognized in last quarter or next quarter, it's the same revenue. This concern is just part of the quarterly earnings fetish that distracts a company from Its real work.

 

[gearchruncher]

@TexasEV Agreed. I'm just trying to show that for all these people that think Tesla rushed it out on Dec 31st to "recognize the revenue in this quarter" that they recognized very little. Most people seem to assume that they will be recognizing all $100M of EAP revenue ($5K x 20K cars) but what they delivered doesn't allow that at all.

Tesla is getting it out ASAP because marketing and customer happiness matters more than showing an additional couple million in revenue in a quarter.

 

[Andyw2100]

Tesla is getting it out ASAP because marketing and customer happiness matters more than showing an additional couple million in revenue in a quarter.

Well that, and presumably so Elon Musk's tweet about getting it out in December would wind up being accurate.

 

[NOLA_Mike]

Well that, and presumably so Elon Musk's tweet about getting it out in December would wind up being accurate.

LOL - that ship has sailed, IMO. Sending an early release to a small subset of users at midnight on Dec. 31st is not what I'd call "getting it out in December"...

EDIT: You don't realize how much you use/like TACC until you drive one car with it, drop it off at the dealer and get in another (very similar) car without it. I had to catch myself when I first set the cruise control and subconsciously expected it to slow down for traffic ahead of me.

Mike

 

[Ahisaac]

Even more:

1) They knowingly only delivered to 1,000 cars out of about 20,000 cars with AP2 HW. You have to treat each customer as their own liability on the books. If you take 20,000 back orders for a product, you don't get to recognize the revenue the day you deliver the first one. If they had made it available to all 20,000, then they could recognize it for everyone (even if they didn't download) but they flat out didn't.

2) They delivered a small part of the product they described. No full auto steer, no summon, no lane change, no highway exit. What they have is maybe 25% of EAP. So they can't recognize the fulfillment of the full liability.

By this math, they delivered 25% to 1,000 out of 20,000 cars. This means they can recognize about $1M in revenue ($5,000 * 25% * 1000).

I'm not worried about it. REVREC...really? Everyone's a CFO and expert now on Sarbanes-Oxley.