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  • Warranty Trend For The Model S 0 comments
    Aug 16, 2014 8:57 PM | about stocks: TSLA
    Accrued warranty-beginning of period11373584371719325318253722368772406113013
    Warranty costs incurred10153-11179-9271-9300-8060-6392-1601-3107
    Changes in liability for pre-existing warranties, including expirations-56711460915418120-1012248783174 
    Provision for warranty3113225934201691993017642183591124414156
    Accrued warranty - end of period129043113735843717193253182537223687824062

    An interesting detail is noticed from looking at historical data ... the warranty costs follow the number of cars sold rather than the number of cars on the road.

    What that indicates is that Tesla is working through QC issues that the service center then takes care of. But once resolved, the cars are "fixed" generally not to return for further service. Let's see in Q3 is the trend continues?

    Update (Apr 2015): For the first time, warranty costs actually decreased despite increased quarterly sales. No wonder no one's been harping about the "drivetrain failures" anymore.

    Disclosure: The author is long TSLA.

    Stocks: TSLA
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