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When to pay for service to reflect best on books?

Discussion in 'TSLA Investor Discussions' started by sp4rk, Mar 25, 2013.

  1. sp4rk

    sp4rk Banned

    Joined:
    Apr 25, 2012
    Messages:
    1,219
    Location:
    Schaumburg, IL
    Got email from TM today telling me it's time to cough up for service $.

    Fine.

    Have til April 30 to pay.

    My question; as it makes little difference to me if I pay today or April 29, when is best for them?

    Do they need the additional dosh to "pad" the 1st Q or would they rather see it in their 2nd?

    Figure 5,000 cars delivered ... and assume everyone pays the $1,900. $9.5M. Or everyone waits til annual and pays the $600. Huge difference.

    Given the income from car sales and EV credits, does the service have any impact on their bottom line?
     
  2. Zzzz...

    Zzzz... Member

    Joined:
    Aug 19, 2012
    Messages:
    867
    Location:
    East Asia/Canada
    If you pay now, your money would be added to Cash and Equivalents line.
    Plus they would be added to liabilities(thnx NigelM for pointing that one).

    Those money wont be added to revenue or gross margins.

    So as long as Tesla is Ok on cash (I strongly suspect so) - there is a little difference when you actually send your money. And your payment will be recognized as revenue when they provide annual service to you.
     

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