Credit line (flooring) secured by cars @ 85% of value, 15% cash by dealer
Inventory must be in known location so it can be audited by lender. Lender is putting up $, needs to know where their collateral is.
When car is sold, $ is received, Car is given to to new buyer with temp tags, the new owner leaves the lot.
$ is received, dealer gives car w temp tags but delays registering/sending the title. Until car is registered & title is transferred , flooring lender still thinks the car hasn't sold & is dealer inventory.
Dealer just stole that 85% of the $ the lender fronted them
Instead of a flooring line they have an ABL but same idea
Sells car (A), receives $, new owner drives off with temp tags.
Tesla uses the money for other expenses, stealing from the ABL. They delay months, keep giving new temp tags as long as possible.
Like any Ponzi, they need to sell more cars to pay off their ABL for the unregistered cars they took the money for
Have you ever heard of the DMV being overwhelmed not being able 2 register cars?
It looks like they are doing this 4 their CPOs as well
A slight Possibly is they never paid off the used car to get the title but are selling cars they don't even own. Hence the stories of "lost titles"
Its all a big money grab to stay alive!