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Model S Revenue Speculation

Discussion in 'TSLA Investor Discussions' started by joefee, May 13, 2012.

  1. joefee

    joefee Over 2 Million TMC page views

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    "Q2 revenue will be up $10million" includes maybe 7M cars plus 3M revenue from other operations.
     
  2. Andrew Wolfe

    Andrew Wolfe Roadster 472 - S 440

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    I think we need to be very careful about interpreting these numbers. Revenue recognition can get complex. It would not surprise me if Tesla is allowed to recognize the $10K non-refundable portion when the contract is signed.
     
  3. NigelM

    NigelM Recovering Member

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    Non-refundable deposits cannot be recognized as liabilities so are therefore classified as revenue. The revenue should be recognized in the period to which the transaction pertains; I would generally see that as the potential closing date of the MVPA, which would put most existing ones into Q3.

    (Shouldn't this discussion be in one of the "Investor" threads?)
     
  4. Beavis

    Beavis Signature 991

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    I think delivery is required to recognize revenue. Per page 107 of the 10-K, "We recognize revenue when: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred and there are no uncertainties regarding customer acceptance; (iii) fees are fixed and determinable; (iv) and collection is reasonably assured."
     
  5. joefee

    joefee Over 2 Million TMC page views

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  6. palmer_md

    palmer_md Member

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  7. joefee

    joefee Over 2 Million TMC page views

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