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Tesla's Full Self-Driving (FSD) revenue recognition is complicated by regulatory challenges, potential lawsuits, and the distinction between immediate subscription revenue and deferred recognition for purchased features, raising concerns about the product's completion and resale value Questions to inspire discussion  Financial Implications 🔢How does Tesla's revenue recognition for FSD differ between subscriptions and purchases? Tesla recognizes full revenue for FSD subscriptions as a beta/supervised product, while treating purchases as deferred revenue for a future product until FSD is feature complete. 💰What impact could Tesla's FSD revenue recognition have on earnings? A potential earnings surprise may occur if Tesla recognizes revenue against...

Tesla is strategically using vehicle-secured leases to manage debt and attract investors, while navigating consumer credit risks and maintaining a strong financial position compared to traditional automakers facing significant challenges in the electric vehicle market   Questions to inspire discussion Financial Engineering 🏦Q: How does Tesla manage its vehicle leases? A: Tesla packages $783M in vehicle secured leases into asset-backed securities (ABS), which are rated AAA by rating agencies and sold to money market funds for 3-6 month interest rates, helping Tesla clean its balance sheet of consumer credit risk. 💼Q: Why is Tesla's lease accounting important for analysts? A:...