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What does it mean to "outsell" something when that something is backordered into the foreseable future? Personally I will wait until Tesla goes bankrupt before
by gcheong 9y ago
What does it mean to "outsell" something when that something is backordered into the foreseable future? Personally I will wait until Tesla goes bankrupt before I buy a bolt but I'm still betting that, despite Tesla's lack of ability to predict their own production capability timeline (uh hello, pretty much every tech company that ever existed), that I won't have to.
- hkmurakami 9y agoActual deliveries and full payment.
- planteen 9y agoExactly, GAAP (generally accepted accounting principles) which publicly traded US companies must play by...
- rtpg 9y agoPreorders don't become actual sales until you ship the product. If Tesla can't ship cars fast enough they're going to have serious cash flow problems. The pre-orders mean they could get some line of credit to help, but that will also cut into margins
- BLanen 9y agoPreorders are a liability.
- Animats 9y agoIn Tesla's case, no. Tesla preorders don't come with a price guarantee, and either the buyer or seller can cancel. It's really just an option on a delivery position. Now if Tesla had locked in the price on preorders, they'd be in big trouble.