New June invites coming “in the next few days”

[SD_Engnr]

I GOT AN EMAIL!!!!





I can go 'look' at a Model 3 in Costa Mesa, CA. Thanks. Ugh.

Seriously, are they sending that crap out just to piss off people? "Oh come and look at what you can't test drive, buy, or even place an order for after we gave you a delivery estimate of Nov-Jan".

Haha. I got 2 separate emails with the same info... lame!

 

[lapolak]

They just sent me this randomly. How cruel.

 

[Mike_F]

Don't expect an invite to configure until July 1, that way $2500 x number of configurations is counted in Q3. I also expect that Performance will be delivered in 3 - 4 weeks max in CA (sorry East coast although first to configure you will be last to deliver that is a fundamental law of the Tesla Universe).

So cool your jets until July 1 and stop hitting ENTER, makes no difference.

 

[Moderatefan]

Don't expect an invite to configure until July 1, that way $2500 x number of configurations is counted in Q3.

What difference does it make what Q the $2.5K count towards? It's not a delivery.
with a "standard" 4-6 week wait time after configuration they should be trying to send invites to us, May-Jul estimates so we can fet deliveries close to the end of July. I realize it will probably take 2+ weeks to deliver to those who configured on 4/18, but still we could get smth in July, I think.

 

[Knightshade]

What difference does it make what Q the $2.5K count towards? It's not a delivery.

Remember Q3 is the one Elon promised would be profitable....I think they're thinking moving revenue from Q2 to Q3 makes a lot of sense from that perspective.

Though I kinda want to say accounting rules don't work that way these days and they can only recognize the revenue when the car passes to the owner now?

 

[Mike_F]

the fact that the deposits (both reservation and order) becomes non-refundable makes it revenue for Q3 regardless if the car is delivered or not, if the order is canceled TM keeps the money on top of that from the person that eventually gets the car. Check the fine print, TM states the $2500 is for work performed by TM in acquiring the car, not the car itself and is therefore not refundable and counts as revenue for Q3.

I wish I am incorrect as I am a 3.31.16 reservation holder that deferred for a Performance M3. Since I live in CA Bay Area, not bothered by the wait to configure (I have been a Tesla customer since 2012 and know how TM operates in crunch times) since TM will push CA deliveries first over deliveries to other places regardless of the configuration date.

 

[Moderatefan]

is therefore not refundable and counts as revenue for Q3.

Ok, $3.5k is 7% of $50k, I really do not think this is a good reason to hold production over it. They will get a bunch of $3.5k deposits in Q3 that will be delivered in Q4. Should they be holding up Q4 deliveries too? And then hold up Q1 2019 etc.?
I don't see how this makes any sense. They need to keep growing their production & deliveries as fast as they can. B/c the demand will grow too.

 

[McRat]

Ok, $3.5k is 7% of $50k, I really do not think this is a good reason to hold production over it. They will get a bunch of $3.5k deposits in Q3 that will be delivered in Q4. Should they be holding up Q4 deliveries too? And then hold up Q1 2019 etc.?
I don't see how this makes any sense. They need to keep growing their production & deliveries as fast as they can. B/c the demand will grow too.

Accountants would turn their mothers in to the IRS for 2% gains.

7%? They would sell plutonium to Hamas.

 

[Knightshade]

the fact that the deposits (both reservation and order) becomes non-refundable makes it revenue for Q3 regardless if the car is delivered or not, if the order is canceled TM keeps the money on top of that from the person that eventually gets the car. Check the fine print, TM states the $2500 is for work performed by TM in acquiring the car, not the car itself and is therefore not refundable and counts as revenue for Q3.

I wish I am incorrect as I am a 3.31.16 reservation holder that deferred for a Performance M3.

I'm pretty sure you are incorrect.


Tesla mum on new accounting rules that could significantly change financial results

Deposits are liabilities because they represent an obligation for the company to deliver cars to its customers that are still being manufactured.

According to a guide produced by its auditor PwC , Tesla will have to recognize revenue under the new rules when control of the car passes to the customer.

If you'd like to see Tesla telling you deposits aren't revenue, here's a Q-10 from them

tsla-10q_20170930.htm

Customer deposits are under liabilities, not revenue.

 

[Ejl80]

It’d also be nice if people stopped posting in this thread unless they have actual info related to the topic.

 

[schonelucht]

the fact that the deposits (both reservation and order) becomes non-refundable makes it revenue for Q3 regardless if the car is delivered or not,

This is incorrect. Revenue is only booked in the quarter when the underlying asset is actually delivered to the customer (and cost of sales is also accounted for in the same quarter, even if Tesla purchased the raw materials earlier). Money received at reservation or at order time (be it refundable or not) is booked in customer deposit. Here is the language from the Tesla 10-Q

Customer deposits primarily consisted of cash payments from customers at the time they place an order or reservation for a vehicle or an energy product and any additional payments up to the point of delivery

There is difference for cash and balance sheet accounting though. That's done in the quarter the money comes in.

 

[Mike_F]

Guess we will see July 1.

 

[ksb467]

Seems unlikely to expect any June invites now that Tesla says orders before 7/1 get free LTE. Would be nice of them but, financially seems more likely they’d hold off on more invites until after. Sigh

 

[lairdb]

[...]I am a 3.31.16 reservation holder that deferred for a Performance M3. Since I live in CA Bay Area, not bothered by the wait to configure

Yes, but now the wait to configure may take us past the free internet deadline.

 

[Moderatefan]

Yes, but now the wait to configure may take us past the free internet deadline.

Those with an invite in their hands now have a dilemma for the next 5 days...Do they want a free LTE for life(of car) or they'd rather pay for it and have AWD
Time to open a poll...

 

[Petra]

Those with an invite in their hands now have a dilemma for the next 5 days...Do they want a free LTE for life(of car) or they'd rather pay for it and have AWD
Time to open a poll...

Who in their right mind would compromise on the configuration they want over an optional $100/year data package?

 

[setheryb]

To me the $100/yr for the internet isn't that big of a deal, it's like $8/month.

For me, I don't understand how they can possibly stick to the May-July delivery window at this point if invites haven't gone out yet. I gotta think that July is practically booked for deliveries at this point.

 

[Moderatefan]

Who in their right mind would compromise on the configuration they want over an optional $100/year data package?

Well, somebody like me. I am not entirely positive I want AWD. I want LR and PUP.
I was considering waiting for AWD to see if they can make it happen in 2018 and deciding then if I want it. But LTE could force me to make a decision now if I had the invite.

For me, I don't understand how they can possibly stick to the May-July delivery window at this point if invites haven't gone out yet. I gotta think that July is practically booked for deliveries at this point.

I feel so too. It seems 4/18 invites will last them through the whole July for deliveries. Our May-Jul windows look very much like Aug+ at this point. Wondering if they are going to update delivery estimates after Q2 call.

 

[Trips]

Yes, but now the wait to configure may take us past the free internet deadline.

I would gladly trade my ordered 3LRD with free data for a 3LRD w/ white seats and paid data.

 

[FloridaJohn]

Arrgh!

That’s all. Just needed to vent.