3 ms·

Am I reading this right? over 1/4 of revenue attributed to customer deposit?

• slg 8y ago
  It has been a while since I have taken an accounting class, but I am pretty sure the deposits can't be recognized as revenue since they also count as a liability. They are only recognizable as revenue once that liability has been cleared, basically once Tesla has delivered the car. It would be like issuing a bond, a positive cash flow event that doesn't alter the company's revenue or total value.
  • mortehu 8y ago
    You're describing accrual accounting, as opposed to cash accounting, and all public companies in US do indeed use accrual accounting.