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The feature is not ready. The only reason Tesla pushed it out this early is that they want to recognize some of the Autopilot deferred revenue in Q3 to mask a Y

The feature is not ready. The only reason Tesla pushed it out this early is that they want to recognize some of the Autopilot deferred revenue in Q3 to mask a YoY decline in revenue driven by lower ASPs, which damages their growth story.

zaroth 7y ago
From the 10-Q Q2 Quarterly Report; Deferred revenue related to the access to our Supercharger network, internet connectivity, Autopilot and FSD features and over-the-air software updates on automotive sales with and without resale value guarantee amounted to $1.19 billion and $882.8 million as of June 30, 2019 and December 31, 2018, respectively. Deferred revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, as of the balance sheet date. Revenue recognized from the deferred revenue balance as of December 31, 2018 was $113.5 million for the six months ended June 30, 2019. From the deferred revenue balance as of January 1, 2018, revenue recognized during the six months ended June 30, 2018 was $44.5 million. Of the total deferred revenue on automotive sales with and without resale value guarantees, we expect to recognize $567.0 million of revenue in the next 12 months.
cloudwalking 7y ago
Damaged growth story? Tesla delivered more cars this quarter than ever before: https://www.cnbc.com/2019/10/02/tesla-tsla-3q-2019-production-and-delivery-numbers.html https://www.cnbc.com/2019/10/02/tesla-tsla-3q-2019-productio... Lower ASP is to be expected as people are buying many more (and increasing) Model 3 than Model S/X.
- ceejayoz 7y ago
  The headline of your link literally says "falling short of forecasts". That supports the "damaged growth story" assertion, doesn't it?
  - cloudwalking 7y ago
    No I don't think so. Deliveries are still going up and up! Just not quite as high as the TOP end of the Wall st. forecast.
- ianferrel 7y ago
  Selling more cars is great, but YoY reduction in revenue will not justify the valuation of TESLA stock.
  - cloudwalking 7y ago
    Depends how you define "reduction in revenue." YoY growth in units but reduction in per-unit profit is often a very good sign. See Apple when they introduced the iPod mini. Average sale price went down but number of units continued to increase.
    - ianferrel 7y ago
      Total revenue. Apple did not make less total revenue when they introduced a lower-priced iPod. The claim above was that Tesla would have had a reduction in total revenue without being able to book pre-sales for this half-baked feature.
- deleted 7y ago
  [deleted]

zaroth 7y ago

From the 10-Q Q2 Quarterly Report; Deferred revenue related to the access to our Supercharger network, internet connectivity, Autopilot and FSD features and over-the-air software updates on automotive sales with and without resale value guarantee amounted to $1.19 billion and $882.8 million as of June 30, 2019 and December 31, 2018, respectively. Deferred revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, as of the balance sheet date. Revenue recognized from the deferred revenue balance as of December 31, 2018 was $113.5 million for the six months ended June 30, 2019. From the deferred revenue balance as of January 1, 2018, revenue recognized during the six months ended June 30, 2018 was $44.5 million. Of the total deferred revenue on automotive sales with and without resale value guarantees, we expect to recognize $567.0 million of revenue in the next 12 months.

cloudwalking 7y ago

Damaged growth story? Tesla delivered more cars this quarter than ever before: https://www.cnbc.com/2019/10/02/tesla-tsla-3q-2019-production-and-delivery-numbers.html https://www.cnbc.com/2019/10/02/tesla-tsla-3q-2019-productio... Lower ASP is to be expected as people are buying many more (and increasing) Model 3 than Model S/X.

ceejayoz 7y ago
The headline of your link literally says "falling short of forecasts". That supports the "damaged growth story" assertion, doesn't it?
- cloudwalking 7y ago
  No I don't think so. Deliveries are still going up and up! Just not quite as high as the TOP end of the Wall st. forecast.
ianferrel 7y ago
Selling more cars is great, but YoY reduction in revenue will not justify the valuation of TESLA stock.
- cloudwalking 7y ago
  Depends how you define "reduction in revenue." YoY growth in units but reduction in per-unit profit is often a very good sign. See Apple when they introduced the iPod mini. Average sale price went down but number of units continued to increase.
  - ianferrel 7y ago
    Total revenue. Apple did not make less total revenue when they introduced a lower-priced iPod. The claim above was that Tesla would have had a reduction in total revenue without being able to book pre-sales for this half-baked feature.
deleted 7y ago
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