Tesla's call for suppliers to refund cash 'reeks of desperation'

Tesla shares sink on reports carmaker is running short on cash

The US auto manufacturer declined to comment, but confirmed it's seeking price reductions from suppliers for projects, some of which go back to 2016, according to the report.

A memo from Tesla has been sent to select suppliers asking for cash back to help it become profitable, according to the Wall Street Journal.

Tesla has said the company will be profitable in the third and fourth quarters of the year.

Becoming cash-flow positive is the primary goal of Chief Executive, Elon Musk, who said he wants to avoid raising additional cash, and turn a profit in the second half of the year.

Fight over parking spot leads to deadly Florida shooting near Clearwater
Michael Drejka told deputies he was in fear for his life, and that's why he pulled the trigger shooting Markeis McGlockton. After a couple of seconds elapse, Drejka is seen pulling out a gun and shooting McGlockton once in the chest.

The manager described the refunds as "essential" to Tesla's ability to continue operating at its current speed and scale, portraying the money's return as an investment into the company's future.

Tesla had about $3.2 billion in cash as of March 31, after spending about $1 billion in the quarter.

When a company asks suppliers to retroactively give money back, it's a sign that something has gone wrong.

Tesla's stock was down 5.7pc to $295.64 (€252.70) at one stage yesterday in NY. It suggested that all Tesla suppliers were being asked to make partial refunds, but some of the companies that the WSJ talked to denied any knowledge of such a request.

I'll always carry Roma in my heart, says Liverpool signing Alisson
We were not too bad previous year but we had to improve and we tried that on the transfer market. The Brazilian, 25, passed a medical on Thursday and has signed a six-year deal at Anfield.

"Only costs that actually apply to Q3 & beyond will be counted", Tesla CEO Elon Musk said on Twitter in response to the report.

Tesla has been burning through cash as it ramps up production of its Model 3 sedan. Chief Executive Officer Elon Musk has said the company does not need to raise cash this year, but several analysts have predicted that the electric vehicle maker would need to raise capital soon. For starters, Model 3 production appears to be ramping up, with Tesla having reached the 5,000 unit/week threshold during the last week of June.

All of that has to happen while Tesla carries $10.5 billion in debt. "It's simply ludicrous and it just shows that Tesla is desperate right now", Dennis Virag, a manufacturing consultant, told The Wall Street Journal.

Tesla shares prices are down by 3%.

'Helsinki has frozen over': Late night blasts Trump-Putin summit
Russian officialdom "will be super-cautious in order not to damage Donald Trump any more than he did himself", Gabuev said . Throughout the event on Monday, Trump held the issue of hacking in 2016 at arm's length, as though it were merely a theory.

Related news:

Hot News

isis-killer-beheading-video-story-top Tour de France fans continue to taunt Chris Froome
Jul 23, 2018 - 16:15
Briton Geraint Thomas keeps the yellow jersey after finishing ahead of his rivals. "It is what it is and I am enjoying it still". He was accused of using racial slurs against Kévin Reza a year ago and was sent him on a diversity awareness course at the time.

isis-killer-beheading-video-story-top Jersey photographer's image marks Prince George's birthday
Jul 23, 2018 - 15:58
The royal photographer took the picture of the five-year-old after the christening of his baby brother, Prince Louis , on July 9. To celebrate the special occasion, Kate Middleton and Prince William have flown to the attractive serene beaches of Mustique.

isis-killer-beheading-video-story-top South Africa out for 124 as Sri Lanka eye sweep
Jul 23, 2018 - 14:58
Sri Lanka's Akila Dananjaya celebrates with teammates after taking the wicket of South Africa's Keshav Maharaj . Sri Lanka ended the 2nd day with 151 runs on the board and seven wickets in hand.

isis-killer-beheading-video-story-top Trump and Rouhani trade angry threats
Jul 23, 2018 - 14:16
Iran has met protests with security forces and violence time and time again, but the unrest has continued on a regular basis throughout 2018.

isis-killer-beheading-video-story-top Julian Alaphilippe claims Tour de France stage 10
Jul 23, 2018 - 13:17
Frenchman Bardet, however, is now lagging 2:58 off the pace ahead of Thursday's 12th stage ending up the iconic Alpe d'Huez. "Obviously it's not nice (the boos) but everyone is entitled to their opinion, but we need to be safe", Thomas said.

isis-killer-beheading-video-story-top Donald Trump holds Vladimir Putin responsible for USA election interference
Jul 21, 2018 - 13:41
Indeed, when Trump came to office, many Russians hoped he would pave the way for lifting sanctions and ending years of tensions. That's drawing from protests by Democrats who say Republicans aren't doing enough to prevent Russian meddling in USA elections.

isis-killer-beheading-video-story-top White House: 'Threat' from Russian Federation still exists
Jul 21, 2018 - 12:44
The US President even went so far as to name a syndrome after himself, apparently without realising the obvious irony. Lindsey Graham, a Republican from SC , said he was happy to hear that Sanders had clarified Trump's comment.

isis-killer-beheading-video-story-top Indian opposition leader Gandhi startles bitter foe Modi with a hug
Jul 21, 2018 - 11:12
Singh also targeted Rahul Gandhi and said, "They have ruled for 48 years after Independence". And then the Congress president hugs the PM - a long-drawn tight hug.

isis-killer-beheading-video-story-top EPL: Chelsea confirm Conte's sack, lists what Italian did at Stamford Bridge
Jul 21, 2018 - 10:56
Italy midfielder Jorginho has become Chelsea's first signing since Maurizio Sarri was hired as manager of the Premier League club. Nearly two months later Chelsea are looking for a 13th permanent boss of Roman Abramovich's ownership, which began in June 2003.

isis-killer-beheading-video-story-top Putin summit: US leader cautious ahead of Helsinki talks
Jul 21, 2018 - 10:46
He has repeatedly noted that Putin denies it, while also saying that it is alleged to have taken place before he became president. Trump called the private talks with the Kremlin leader a "good start". "I'm not going in with high expectations".

isis-killer-beheading-video-story-top MS Dhoni to retire after crushing defeat in England?
Jul 19, 2018 - 10:43
James Vince , called up in place of the injured Jason Roy cut the first ball of England's reply, from Bhuvneshwar Kumar, for four. Root (100 not out) and Morgan (88 not out) shared an unbroken third-wicket stand of 186 as England won with 33 balls to spare.

isis-killer-beheading-video-story-top Trump, Putin Discuss Charges Of Russian Interference In 2016 U.S. Election
Jul 19, 2018 - 10:18
President Donald Trump says the United States and Russian Federation must find ways to "cooperate in pursuit of shared interests". The top Republican in Congress, House Speaker Paul Ryan , said Mr Trump must see that " Russia is not our ally".

isis-killer-beheading-video-story-top Venezuela's Maduro Declares Africa 'Real World Cup Winners'
Jul 19, 2018 - 09:02
It was the players, though, who captured the French imagination. "Stop it with this "Africa won the world cup for France" nonsense".

Jeff Bezos' Blue Origin launches spacecraft higher than ever
Jul 19, 2018 - 07:43
It's coming, but we've got our eye on the prize, and we've got to make sure we understand our system through and through. Those missions will rely on the bigger, more powerful New Glenn rocket still under development.

isis-killer-beheading-video-story-top Not sad about leaving Real Madrid: Ronaldo
Jul 18, 2018 - 11:18
Juve have reached the final of the Champions League twice in the past four years and Roma reached the semifinal last season. I will work hard. "It gives me so much momentum for the future". "It was a really stunning moment for me", he added.