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From an accounting standpoint, all of that preorder cash is likely restricted and won't be available to fund general operations.
by mikeyouse 11y ago
From an accounting standpoint, all of that preorder cash is likely restricted and won't be available to fund general operations.
- dragontamer 11y agoIt's actually counted as a 'liability' on the balance sheet. So the money is already spent. Read the terms. The funds are NOT held in Escrow
- mikeyouse 11y agoThat's only one side of the transaction.. The cash is also held as an asset as cash on the balance sheet -- likely restricted cash. My only point is that their cash position to build out their production line is probably overstated if you only look at the cash/marketable securities line item.
- dragontamer 11y agoI read the 8k published on May 4th. http://ir.teslamotors.com/secfiling.cfm?filingID=1193125-16-577582&CIK=1318605 http://ir.teslamotors.com/secfiling.cfm?filingID=1193125-16-... Restricted cash is only $47 Mil. I think they're actually accounting the pre-order money as straight up Cash on hand. > My only point is that their cash position to build out their production line is probably overstated if you only look at the cash/marketable securities line item. I agree with this. I'm just surprised at how they're accounting for this. I'm fairly certain they consider the pre-order money to be 'cash / cash-equivalents', the $1.4 Billion line item.