The Tesla Megapack is sold on a performance contract. This changes the accounting completely of when revenue can be recognized and how it is deferred.
In this video I discuss how that can cloud what is taking place and how it can get overlooked since the revenues are not appearing in the quarter the expsenses show up.
▶️ 3Speak
I guess it should even out eventually right? The revenues also appear in quarters where the expenses don't show up. So profit will be higher in that quarter.
If it were flat, yes that would be the case. However, since we are seeing a rise in the number of units delivered, on average, more expense is being incurred in present quarters. Eventually it will all even out.
However, in the meantime since the revenue is posted, for the most part, as deferred, it is overlooked.