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I guess that is my confusion, I thought Tesla was originating the lease.
Tesla sells the car to a bank, and the bank leases it to the customer. For leases done through Tesla directly, Tesla just talks to the bank for you.
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Tesla sells the car to a bank, and the bank leases it to the customer. For leases done through Tesla directly, Tesla just talks to the bank for you.
Sorry, not trying to be difficult, but this doesn't clear things up for me. Are you saying that Tesla does not lease directly to the consumer?
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I wouldn't exactly call it comical. It's just that it's a political term rather than a financial one. Deciding to take a profit this year is an important signifier for the investors, who all must have the same question in mind, how long is it going to take for their investment to pay off. As long as Musk decides to roll all revenues back into operations, investors get nothing. Musk has a reputation as someone who doe…
humanity is getting out of the deal, they already got the Model S and X, it's soon going to get the 3 Let's not be too breathless when we describe the cars that a few hundred thousand of the wealthiest people on the planet have purchased.
It might be worth it in the end, but call a spade a spade.
Really great news! But something that shouldn't be overlooked is the discounts they gave in Q3 to push deliveries up. First, those that know me know that I am a Tesla FANATIC. My girlfriend once challenged me to not talk about Tesla (motors, energy, something) for a 24 hour period. I dunno if I've ever done that honestly. I'm also an owner (no surprise given my fanaticism, lucky to be able to afford one). And I also…
> "I also happen to know a lot of the people who bought a heavily discounted Tesla in Q3 feel kind of burned that right at the beginning of Q4 Tesla announced the new Autopilot hardware (that isn't retrotfitable on old vehicles). " Wow I guess this is the best proof of how Tesla is really changing the way auto owners think, this is something that wasn't unthinkable before Tesla and their over the air updates. Can you…
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I wouldn't exactly call it comical. It's just that it's a political term rather than a financial one. Deciding to take a profit this year is an important signifier for the investors, who all must have the same question in mind, how long is it going to take for their investment to pay off. As long as Musk decides to roll all revenues back into operations, investors get nothing. Musk has a reputation as someone who doe…
humanity is getting out of the deal, they already got the Model S and X, it's soon going to get the 3 Let's not be too breathless when we describe the cars that a few hundred thousand of the wealthiest people on the planet have purchased.
Well, you know, I wasn't. The opposite actually.
Really great news! But something that shouldn't be overlooked is the discounts they gave in Q3 to push deliveries up. First, those that know me know that I am a Tesla FANATIC. My girlfriend once challenged me to not talk about Tesla (motors, energy, something) for a 24 hour period. I dunno if I've ever done that honestly. I'm also an owner (no surprise given my fanaticism, lucky to be able to afford one). And I also…
>Really great news! But something that shouldn't be overlooked is the discounts they gave in Q3 to push deliveries up. Elon stressed in the call that they did not give significant discounts, and the few that did happen were not to be repeated.
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How do significant discounts create more profitability? Isn't that like "we lose money on every sale, but make it up in volume."?
Per-unit margin goes down (but is still profitable per unit) but you make up in volume to create a profit. Tesla's main costs aren't the cost per unit but the engineer/software costs iirc.
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Sorry, not trying to be difficult, but this doesn't clear things up for me. Are you saying that Tesla does not lease directly to the consumer?
Yes, that's right. They present it as if it were direct, but they're really just acting as a front for a third-party bank. They don't have their own finance arm.
Any idea why they have to list automotive leasing as a separate line item on their report? If they are selling it to a bank who is then responsible for the lease, why list it separately?
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Yes, that's right. They present it as if it were direct, but they're really just acting as a front for a third-party bank. They don't have their own finance arm.
Ok, got it now, thanks. Any idea why they have to list automotive leasing as a separate line item on their report? If they are selling it to a bank who is then responsible for the lease, why list it separately?
http://seekingalpha.com/amp/article/3988503-gaaps-treatment-...
If I understand it correctly (probability: moderate?) then it's basically an accounting artifact. The fact that Tesla arranges the lease means they have to book the revenue differently. Somehow....
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Yup, and as battery prices drop those margins are going to get even better(although I doubt we'll see the same level on the Model 3).
Only if they can sustain prices as competition comes online from other makers.