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Re: Resale Value Guarantee
Go to that discussion thread. Tesla can not afford the program. The cars are bringing far less on the open market. But yes, withdrawal of the program will further hurt demand.
"Tesla distances themselves from long term value of vehicles". This stuff writes itself. Of course, the news is fine and smart. Heck I didn't know that policy was still in place.
II don't understand english slang but if you mean that this is against the theory of lack of demand, I would think exactly the opposite.
I guess that Tesla has to sell this retired used cars to someone...maybe potential customers of a new car...that could be good when demand was in excess...not in a situation of demand lack or equilibrium...not to mention the cash problem.
If you did pull examples, it wouldn't support your position. But let's be positive and look forward, do you expect any of those measures to improve? The near term report card on the ER is soon upon us.
Causalien
Prime 8 ball Oracle
There's a very complicated maneuver I am about to enter. Doing modelling with Matlab right now.
It occurred to me that I've never heard about wallstreet using matlab. I do hear about excel. Why is that?
Sorry off topic.
It occurred to me that I've never heard about wallstreet using matlab. I do hear about excel. Why is that?
Sorry off topic.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
They don't need it. They just trade on insider information and use Auto sum in Excel to calculate their profits in advance.
The program was originally instituted to inspire demand. Now it has been rescinded.
Moreover, RVG complicated revenue reporting, widening the difference between GAAP and non-GAAP revenue. There were boatload of negative spin articles, they are all put to rest now.
jhm
Well-Known Member
Yes, it is was how Tesla provided leases before banks were willing to provide well priced leases. It set up deferred revenue liability. So shorts had a field day confusing investors with it.
Interestingly, SolarCity now seems to be backing away from marketing their in-house leases and PPAs. Instead, they are pushing on cash and loans (provided by financing partners). It may well be that the complexity of lease accounting expose a stock to more shareholeder uncertainty than it may be worth.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Yes. They had to set aside the residual value guranteed for 3 years in their GAAP accounting in case the leasee decided to use it (few did).
Was it? I thought it was to backstop the lenders so that they could get attractive lease rates. The banks wouldn't provide leasing services to the small upstart, so they had to provide an extraordinary guarantee. Now that they have a track record lenders are on their own. This is, as I understand it, just some training wheels coming off and shouldn't be read as anything positive or negative in terms of demand.
However.... accounting wise, @SBenson 's question: Does this mean they can stop doing the horrible accounting that makes leased vehicles seem like losses in the present quarter?
Edit: My question was answered before I could finish writing it. This IS significant for quarterly results (Q3+)
Not really. That was with -what turns out- several too optimistic conditions. It estimated the 60 to take up 20% of sales. The tracker currently shows that over 50% of the Model S orders are 60ies. It also assumed that there was no 60X. There is no. Let's do the math again. Average sales price 90k. Gross margin 23% or $20.7k per sold vehicle. Assume a 50%-50% mix S/X. Assume 50% of the S's are 60ies. Assume 20% of the X's are 60ies. This means 35% of the cars will carry a loss of 9k on the gross margin (=$11.7k) Gross margin now becomes 65% * $20.7k + 35% * $11.7k = 17.5k or 19.4% Gross margins could be up to 4% lower than the base scenario without the model 60 reintroduction.
Runarbt
Active Member
I do hope u do ur investing with little bit more ice in your stomach than your posts.
Half your posts are emotional instant reactions to SP movements.
CALGARYARSENAL
Member
Fed beige book suggests economy growing at a mild pace. Growing economy = people buying Teslas.
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