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 ...
That’s not a good business model...............
Tata wouldn’t want it..................
That occurred to me too, after I typed it.
They bought Jaguar, so Tesla probably would be a good fit.................
Maybe Toyota and GM will buy it back out of auction: https://en.wikipedia.org/wiki/NUMMI
If Obama III were President, she’d give it to the UAW.
The Gund brothers used to own the Cleveland Cavaliers and they bought the naming rights of the arena. Of course, they called it the "Gund Arena." It sounded a bit too close to "Gonorrhea" for most fans.
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