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The title says "sold" and an order counts as a sale in my books. Is the title incorrect and should say "delivered"?
by karmakaze 3y ago
The title says "sold" and an order counts as a sale in my books. Is the title incorrect and should say "delivered"?
- stetrain 3y agoGenerally car sales are counted at delivery, or when the manufacturer gets paid for the car. A Tesla order is a $250 deposit. They don't get paid for the car until it gets delivered, and the order can be cancelled at any point before that. Tesla has been fairly consistent on this and as far as I know it matches how most auto companies account for sales. The difference is that some companies count cars sold to dealerships, even if they aren't sold to an end customer yet, but Tesla does not have franchised dealerships.
- lancewiggs 3y agoAnd it's also how recognition of revenue works for accounting for all companies.
- DarmokJalad1701 3y ago> an order counts as a sale in my books It doesn't in Tesla's books in how they report sales. A sale is only considered complete, and revenue recognized once the customer takes delivery.
- karmakaze 3y agoSaying delivered would remove this possible misinterpretation and make the headline non-newsworthy.