--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -495,8 +495,8 @@ def clone(ui, source, dest=None, **opts)
         ui.setconfig("ui", "remotecmd", opts['remotecmd'])
 
     d = Dircleanup(dest)
+    source = ui.expandpath(source)
     abspath = source
-    source = ui.expandpath(source)
     other = hg.repository(ui, source)
 
     if other.dev() != -1: