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So the trolls were right. It is all a scam.Thanks a lot, an excellent find!
Looking at the Dürr Site, they provide assembly technology systems, among other services and systems. I think that this big NA order could be an order for the Model 3 final assembly line for the Fremont factory. Good timing, as reading through this thread lately I was starting to have this nagging feeling that Model 3 is a hoax...
Thanks a lot, an excellent find!
Looking at the Dürr Site, they provide assembly technology systems, among other services and systems. I think that this big NA order could be an order for the Model 3 final assembly line for the Fremont factory. Good timing, as reading through this thread lately I was starting to have this nagging feeling that Model 3 is a hoax...
Really, I think this is it!
From the Q2 shareholders letter: "Later this year, we plan to begin construction of new Model 3 body and general assembly centers."
There is some ongoing discussion among the members who already used this 2 year lease offer/planning to use it here.
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I mean the effective (to make whether the discount affecting on the gross or net side) margin would be going down from ~10% for those demo cars. Lowering prices of your product to increase sales is never a good way for business.
MitchJi
Trying to learn kindness, patience & forgiveness
The stores they are opening in preparation for the M3 will help more (more stores).
Thanks for link. One point missing in the discussion is the end of $7500 fed tax credits that will likely be before Sept 2018, when the lease could be turned back in. I'm rethinking my logic and am now inclined to believe that we'll see lots of early S owners upgrading between AP 2.0 release and the expiration of full $7500 fed tax credit (sometime between 2017 and early 2018). Consider the rush to grab the full credit to be a potent S and X demand lever during 2017. Nonetheless, many new buyers will find the 2 year lease of an S or X to be too good to pass up.
The other side of the coin is the Model 3 buyer who believes they can snag the full fed tax credit if they become an S or X owner in the meantime (and therefore get to cut in line in front of the multitude). The Model 3 becomes $7500 cheaper and although there may be some overlap between Model 3 arrival and leased Tesla end of contract, the spouse can always drive the extra Tesla in the meantime. You can make lots of lease payments with $7500 of savings.
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Non-GAAP Auto Sales Revenue/(Cars Delivered-Direct Leases)
2Q16 $111,116
1Q16 $110,428
4Q15 $99,395
3Q15 $104,384
The high delivery rate in 4Q15 might have been achieved by selling demos and inventory cars at a higher rate than in the quarters before and after. Sig Xs might contribute to the higher ASP in 2016. Regulatory credits were not backed out of the revenue figures.
I was thinking about it, but what options I really want pushes the lease pretty close to what actual purchase would be. We've got two reserves for the M3 and one we will buy, the other hope to transfer to son or my brother for their purchase. In two years if the stock goes up as much as I hope I would feel better buying an MX outright since I'm wary of saddling my young wife with big loan payment now.
Ours is a bit unique situation.
Edit: After seeing the deals you referenced in a subsequent post, I was tempted again. But just today my wife caught me in two driving incidents making autopilot advances even more attractive and even necessary in my old age.
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I just got back from the Burlingame store and pulled the trigger on a two-year lease for a loaded Model S P90DL pre-refresh. I plan to turn it in for a Model 3 (I prefer the smaller size) when the lease is up.
Before the two-year lease deal came out I was waiting for the Model 3 so please adjust your revenue projections accordingly
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I just got back from the Burlingame store and pulled the trigger on a two-year lease for a loaded Model S P90DL pre-refresh. I plan to turn it in for a Model 3 (I prefer the smaller size) when the lease is up.
Before the two-year lease deal came out I was waiting for the Model 3 so please adjust your revenue projections accordingly
Congrats EinSV! TMC forum members figured out pretty quickly that inventory P90DLs are a particularly attractive option as a 2 year lease, and you managed to snag one. Woohoo. Other informed members of the Tesla community such as Intl Professor have a strong reason to wait for AP 2.0. Looks like it'll be a nice range of demand levers taking place in next few months.
FredTMC
Model S VIN #4925
I just got back from the Burlingame store and pulled the trigger on a two-year lease for a loaded Model S P90DL pre-refresh. I plan to turn it in for a Model 3 (I prefer the smaller size) when the lease is up.
Before the two-year lease deal came out I was waiting for the Model 3 so please adjust your revenue projections accordingly
Nice! 10k mile/year or 15k option?
Did tesla store employee say anything about other shoppers asking about the new 2 year lease?
Thanks Papafox!!
And OT but one tip for anyone considering the two-year lease -- be sure to call or visit your local store or call Tesla as there are tons of vehicles available for the two-year lease that are not yet showing on the website with that option.
My point was that depreciation of sold demo cars does not show in revenue. I believe that when demo car is sold full original price is included into the revenue. The difference between the full original price and sale price of demo car is depreciation which is recorded as part of SG&A. Otherwise the accounting would be distorting the sales expenses.
I went with the 10K mile/year option. I will likely drive more than 15K miles/year but on the vehicle I ordered the extra miles were cheaper than paying the added premium for the 15K lease.
The Tesla person I worked with (who was awesome) said they have been getting lots of calls/traffic on the two-year lease. She also strongly suggested I pick up at Palo Alto rather than Fremont because of all of the activity in Fremont. So will have to find another excuse for a factory visit. I'm a little overdue -- my last "factory" visit was in about 2006 when all they had were 6 prototype Roadsters in the San Carlos facility!
They are NOT lowering the prices. The car used in demo fleet, even for one day, can not be sold at the same price as car ordered and delivered to a customer that ordered it. This is called depreciation. Refreshing the demo fleet is cost of doing business. Can't sell cars without demo cars. Can't sell cars unless the demo fleet is continuously refreshed.
Of course Tesla will make more money if it can miraculously sell cars without giving test drives, and therefore getting rid of demo cars. Even better, if they get rid of the stores, but continue sell cars all the same, they will definitely make more money. So does it make sense to say that by having stores Tesla takes a hit?
With one store opening every 4 days, why not just move these car to new stores to help sales? Why take 10% of the total price of a S90DL for just 50 miles (Model S P90D 5YJSA1E45GF143979 | Tesla).
BTW Tesla China is offering up to 10k CNY (~1.5k USD) discount for customers who trade in an ICE again. The full discount is available for the ones loaded with options. Basic ones won't have this much.
To follow up on the puzzle for the few that are interested, (B) is the correct answer because shares owned by institutions (long) are recorded on the SEC Form 13F regardless whether they were lent to the third party or not. Here how it is explained on the National Compliance Services (Expert Compliance Support Company) Site: "Advisers should only report the long position. If owned securities have been lent to a third party, they should be reported by the adviser on Form 13F. The third party that borrowed them is not required to report them."
Because it is floor model that is two month old. They absolutely should sell these cars if there is a customer for them. Moving them to another store costs money, and with the another refresh with AP 2.0 and/or 100kWh battery coming any week now, Tesla DOESN'T want to be stuck with pre-refresh cars as they will need to be discounted much more after the AP 2.0 and/or 100kWh battery cars become available.
Depreciation (as you put it) is an expense. Revenue is a receipt, not an expense. I am trying to understand your point. Is it that COGS for demo vehicles are reduced by charging some of it to SG&A: therefore, the lower amount booked as revenue because of the discount does not reduce GM?
The numbers I posted show that revenue per car was lower in Q4 than in quarters on either side of Q4. I believe Tesla discounted cars in Q4 in order to deliver the lower end of the lowered guidance.for 2015. $5k to $10k per car averaged over ~17,000 cars is $85 million to $170 million less revenue for the quarter.
Tesla does not report with sufficient granularity to determine the details of accounting for demo's and service loaners. It's conceivable that the charge-off for loaners is booked to Services & Other COGS. Regardless, I agree with Fallenone, when the demos/loaners/inventory cars are discounted, Operating Profit (not necessarily GM) is reduced.
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