Model S Revenue Speculation

[joefee]

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

 

[Andrew Wolfe]

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.

 

[NigelM]

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.

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?)

 

[Beavis]

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?)

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."

 

[joefee]

Below is a useful site to model TSLA (or any stock) ... I built one to get to $57 per share in 1 yr. Have fun!

Tesla Motors (NASDAQ:TSLA) stock analysis and investing -- Trefis

 

[palmer_md]

Trefis is fun...I just did a quick adjustment to their model and got to $225/share.

http://www.trefis.com/company?hm=TSLA.trefis#/TSLA/n-2070/2216?from=rhs&c=top

 

[joefee]

Trefis is fun...I just did a quick adjustment to their model and got to $225/share.

http://www.trefis.com/company?hm=TSLA.trefis#/TSLA/n-2070/2216?from=rhs&c=top

+1

I’m projecting 220-240 before Q1 14