1. Does Tesla sell its cars FOB destination or FOB shipping point?
Original blog posting (October 12, 2017)

2. Tesla news release 10/2/2017
“In addition to Q3 deliveries, about 4,820 Model S and X vehicles were in transit to customers at the end of the quarter. These will be counted as deliveries in Q ”

3. Question 1
What does FOB destination mean?

4. Question 2
What does FOB shipping point mean?

5. Question 3
Based on the statement from Tesla’s press release, do you think Tesla sells its vehicles FOB destination or FOB shipping point? Why?

6. Question Recap What does FOB destination mean?
What does FOB shipping point mean?
Based on the statement from Tesla’s press release, do you think Tesla sells its vehicles FOB destination or FOB shipping point? Why?

7. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Contact Dr. Wendy Tietz at