Does Tesla sell its cars FOB destination or FOB shipping point?

Tesla carThe following quote is from a recent Tesla news release (“Tesla Q3 2017 Vehicle Deliveries and Production,” October 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 Q4 2017.”

(Note: “Q3” refers to the third quarter of 2017, while “Q4” refers to the fourth quarter of 2017.)


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

Instructor Resources


  • PowerPoint file (brief article overview + discussion questions)

Creative Commons License





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