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Activityrelatedtoourresalevalueguaranteeprogramconsistedofthefollowingfortheperiodpresented(inthousands):
Year ended Year ended
December 31,
2015
December 31,
2014
Operating Lease Vehicles    
Operatingleasevehicles—beginningofperiod  $ 684,590  $ 376,979
Netincreaseinoperatingleasevehicles   1,047,220   380,627
Depreciationexpenserecordedincostofautomotiverevenues   (130,355)  (63,105)
Additionaldepreciationexpenserecordedincostof
automotiverevenuesasaresultofearlycancellationof
resalevalueguarantee   (21,487)   (9,251)
Increasestoinventoryfromvehiclesreturnedunderourtrade-
inprogram   (23,439)   (660)
Operatingleasevehicles—endofperiod  $ 1,556,529  $ 684,590
   
Deferred Revenue    
Deferredrevenue—beginningofperiod  $ 381,096  $ 230,856
Netincreaseindeferredrevenuefromnewvehicledeliveries
andreclassificationofcollateralizedborrowingfromlong-
termtoshort-term   553,765   280,542
Amortizationofdeferredrevenueandshort-termcollateralized
borrowingrecordedinautomotiverevenue   (229,624)  (118,570)
Additionalrevenuerecordedinautomotiverevenueasaresult
ofearlycancellationofresalevalueguarantee   (12,352)   (9,590)
Recognitionofdeferredrevenueresultingfromreturnof
vehicleundertrade-inprogram   (13,753)   (2,142)
Deferredrevenue—endofperiod  $ 679,132  $ 381,096
Resale Value Guarantee    
Resalevalueguaranteeliability—beginningofperiod  $ 487,880  $ 236,298
Netincreaseinresalevalueguarantee   1,013,733   262,526
Reclassificationfromlong-termtoshort-termcollateralized
borrowing   (29,612)   —
Additionalrevenuerecordedinautomotiverevenueasaresult
ofearlycancellationofresalevalueguarantee   (11,042)   (8,557)
Releaseofresalevalueguaranteeresultingfromreturnof
vehicleundertrade-inprogram   (30,386)   (2,387)
Resalevalueguaranteeliability—endofperiod  $ 1,430,573  $ 487,880
DirectVehicleLeasingProgram
InApril2014,webeganofferingaleasingprogramintheUnitedStates,andsubsequentlybegantooffersimilarprogramsinCanadaandGermany.
QualifyingcustomersarepermittedtoleaseavehicledirectlyfromalocalTeslasubsidiaryfor36or48months.Attheendoftheleaseterm,customershavethe
optionofeitherreturningthevehicletousorpurchasingitforapre-determinedresidualvalue.Weaccountfortheseleasingtransactionsasoperatingleasesand
recognizeleasingrevenuesoverthecontractualtermandrecordthedepreciationofthesevehiclestocostofautomotiverevenues.AsofDecember31,2015and
December31,2014,wehaddeferred$25.8millionand$9.4millionoflease-relatedupfrontpaymentswhichwillberecognizedonastraight-linebasisoverthe
contractualtermoftheindividualleases.LeaserevenuesarerecordedinautomotiverevenueandfortheyearendedDecember31,2015andDecember31,2014,
werecognized$41.2millionand$4.4million.
RegulatoryCredits
Californiaandcertainotherstateshavelawsinplacerequiringvehiclemanufacturerstoensurethataportionofthevehiclesdeliveredforsaleinthatstate
duringeachmodelyeararezeroemissionvehicles.Theselawsandregulationsprovidethatamanufacturerofzeroemissionvehiclesmayearnregulatorycredits
(ZEVcredits)andmaysellexcesscreditstoothermanufacturerswhoapplysuchcreditstocomplywiththeseregulatoryrequirements.Similarregulationsexistat
thefederallevelthatrequirecompliancerelatedtogreenhousegasemissionsandalsoallowforthesaleofexcesscreditsbyonemanufacturertoother
manufacturers.Asamanufacturersolelyofzeroemissionvehicles,wehaveearnedemissioncredits,suchasZEVandGHGcreditsonvehicles,andweexpectto
continuetoearnthesecreditsinthefuture.Weenterintocontractualagreementswiththirdpartiestopurchaseourregulatorycredits.
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