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by mikeash 3518 days ago
It goes to the bank that handles the lease.
1 comments

I guess that is my confusion, I thought Tesla was originating the lease.
Tesla sells the car to a bank, and the bank leases it to the customer. For leases done through Tesla directly, Tesla just talks to the bank for you.
Sorry, not trying to be difficult, but this doesn't clear things up for me. Are you saying that Tesla does not lease directly to the consumer?
Yes, that's right. They present it as if it were direct, but they're really just acting as a front for a third-party bank. They don't have their own finance arm.
Ok, got it now, thanks.

Any idea why they have to list automotive leasing as a separate line item on their report? If they are selling it to a bank who is then responsible for the lease, why list it separately?

Good question! I went poking around and turned up this article:

http://seekingalpha.com/amp/article/3988503-gaaps-treatment-...

If I understand it correctly (probability: moderate?) then it's basically an accounting artifact. The fact that Tesla arranges the lease means they have to book the revenue differently. Somehow....