Posted on 07/23/2018 3:20:35 PM PDT by Signalman
Shares of Tesla were down 4 percent Monday after falling more than 6 percent on a report that the electric car maker has turned to some suppliers for a refund of previously made payments in a bid to turn a profit.
Tesla has asked some suppliers to refund money it has paid since 2016, the Wall Street Journal reported Sunday, citing a memo.
The memo, which the paper said was sent by a global supply manager, described the request as essential to Tesla's continued operation and characterized it as an investment in the car company to continue the long-term growth between both players.
Tesla could not be immediately reached for comment, although the WSJ quoted the company as confirming it is seeking price reductions for projects, some of which date back to 2016.
CEO Elon Musk also tweeted: "Only costs that actually apply to Q3 & beyond will be counted. It would not be correct to apply historical cost savings to current quarter."
"Automakers often have brutal pricing demands on suppliers for future work, but retroactive rebates is not something we hear much about, and this is troubling for us to hear," David Whiston, an analyst with brokerage Morningstar wrote in a note to clients.
Tesla has been burning through cash as it ramps up production of its Model 3 sedan. While Musk has said the company does not need to raise cash this year, several analysts have predicted that the electric car maker would need to raise capital soon.
Tesla had about $3.2 billion in cash as of the first quarter ended March 31, after spending about $1 billion in the quarter.
(Excerpt) Read more at msn.com ...
With no taxpayer funds the company will be done
HaHa, now he’s operating like a real automotive company.
Ta Ta, Elon.
Tick, tick, tick ...
I think Elon should have stuck with rockets...
“Automakers often have brutal pricing demands on suppliers for future work, but retroactive rebates is not something we hear much about, and this is troubling for us to hear,” David Whiston, an analyst with brokerage Morningstar wrote in a note to clients.
...
The claim that this is a “retroactive rebate” appears to be false news by the WSJ.
He is a genius and legend. In his own mind.
How many people does your car company employ?
ping
Would that number include those paid using taxpayer provided funds?
Tesla was always doomed. As long as it was a niche product it could survive charging premiums for fan boys and early adopters... however if pure electric ever goes mainstream they will never be able to produce at a level with margin that they won’t be eaten alive by the major players.
If Musk’s goal is to push electric mainstream he may end up being successful, but as a business venture, Tesla always had a limited shelf life.
Elon Musk is doing awesome stuff! Why are some people here so down on him?
Yes he’s gotten government money to do stuff... Do you expect him NOT TO take advantage of everything he can?
He’s employing thousands of workers, and his employees seem to love him.
in the end a tesla is nothing more than a vehicle with a bunch of batteries packed underneath it. I’ve never understood what’s so technologically fascinating about it. I would imagine if you pack enough double A’s together you could get an electric engine to turn.
Batteries will continue to become smaller, lighter, and more efficient over time. Battery-powered cars will constantly be playing catch up to that reality. Today’s tesla is tomorrow’s inefficient dinosaur.
Yes he’s gotten government money to do stuff... Do you expect him NOT TO take advantage of everything he can?
ok fine. Let’s see what happens now that the govt training wheels have come off.
Tesla is doomed because the socialists are out of power.
Timing is everything.
Jaguar I-Pace, Audi E-Tron, Porsche Taycan and some other EVs that are direct Tesla rivals are coming on the market in the next months. Very prestigious, available at local dealers from well-capitalized, established manufacturers. Not good for Tesla outlook.
Government picking winners and losers since 1860.
Would that number include those paid using taxpayer provided funds?
...
How many people does Tesla employ using taxpayer funds?
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