How does this (0% loans) affect vehicle margins, or does it? Maybe a different expense on the books like bitcoin for example?
Good move if so.
Edit: Just another wild ChatGPT goose chase, nothing to see here. Thanks @unk45.
Revenue Recognition: The sale of a vehicle is recognized at the point of sale, and the total revenue generally includes the price at which the car is sold, regardless of the financing terms. Therefore, whether the car is purchased with cash, a standard finance rate, or a promotional 0% interest rate, the revenue recognized from the sale remains unchanged.
Cost of Financing: Tesla has to bear the cost of capital for offering 0% financing. This cost can be significant but is considered a part of financial operations separate from the direct cost of vehicle production and sale.
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