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So you're arguing that Tesla should apply R&D costs to vehicles but not count credits directly resulting from the sale of a vehicle? The sale of a vehicle resu
by cptskippy 6y ago
So you're arguing that Tesla should apply R&D costs to vehicles but not count credits directly resulting from the sale of a vehicle?
The sale of a vehicle results in a credit that can then also be sold, so why can't that profit be tied to the vehicle?
On the flip side, the company can spend lots on R&D that never makes it way into a vehicle. Why should that then count against the profit from selling a vehicle?
- reitzensteinm 6y agoUnlike parent, I agree credits should be included in gross margin, whether positive or negative. Companies in Europe facing significant CO2 fines should have that reflected in their reported margins. I don't understand your R&D point though. It's perfectly logical either way to include or exclude it. There's nothing wrong with how Tesla does it, and there's nothing wrong with how the rest of the auto industry does it. It just means you can't blindly compare the figures.