Tesla Asking Suppliers For Cash Back To Help Turn A Profit, Says WSJ

Tesla Motors has requested from some of its suppliers to refund a portion of what the electric car maker has spent previously to help it return a profit, according to a report from Wall Street Journal.

The EV maker has reportedly sent a memo, which was reviewed by WSJ, to a supplier last week. In the memo, Tesla asked from its supplier to return what it calls a meaningful amount of money of its payments since 2016.

The memo, which was sent by a global supply manager, described the request as essential to Tesla’s continued operation and says that it will be an investment in the EV maker to continue the long-term growth between them and the supplier.

Tesla also said in the memo that all suppliers were being asked to help them become profitable, but it’s still unclear how many of were asked for refunds.

While the automaker declined to comment on the memo, Elon Musk said on Twitter that the company’s request aims to reduce costs that apply only to Q3 and beyond. “It would not be correct to apply historical cost savings to current quarter”, Musk added.

Tesla’s latest requests from suppliers raise further questions about the company’s cash position. Following months of delays, it managed to reach its self-imposed goal of building 5,000 Model 3 vehicles in a single week, which, if sustained, will help the Palo Alto company turn a profit for the first time in its history.

more photos...

 

  • salamOOn

    what the…? 😀

  • Doodz

    A bad situation at Tesla just got 10x worse today. An

    • S3XY

      If anyone would know anything about Tesla’s financials it’s obviously you.

      • Doodz

        Pull a few research reports from any of your brokers of their last few Qs, look them over, then get back to me if you really want to discuss their shitty financial situation. That is if you even understand how to read an income statement, financial modeling, balance…

        And yes, now they even admit how unbelievably F’d they are by asking their suppliers for cash so they can show a ‘profit’. Are you kidding me?? How bloody desperate is that??!!

        Enron is giggling in its grave right now.

  • botornot387

    the writing is on the wall

  • Mr. EP9

    If you need to ask your suppliers to refund a portion of what you spent just so you can turn a profit, despite being in operation since 2007 (I think?), you’re obviously doing something wrong.

  • Status

    Slowly, very slowly, Musk is eroding his respectability. I gave him the benefit of the doubt for years and I applaud him for not doing business with dealers, but there’s scarcely any respectable trait beyond that.

    • S3XY

      I’m sure he’s deeply hurt by your loss of respect for him. Continue changing humanity as much as Elon good sir

      • Status

        He’s changing humanity by calling innocent people pedophiles.

        Besides, art outlast deeds. I don’t see a single creative fibre in anything he’s done. You’re only here to act like a cheerleader for his wealth and nothing else. You’re just as bad as the cheerleaders for Trumps wealth.

        Maybe you should have a word with yourself.

      • Doodz

        Change humanity? Dude, you need help!!!!

      • Matthew Daraei

        Oh, shut the hell up!

  • designer_dick

    Why should suppliers be expected to potentially impair their own profitability to prop up Tesla’s increasingly precarious financial position?

  • robotlogic

    I personally would never bet against Elon. Everything the man does is unconventional and “far fetched” and so far he has always pulled it off. Build rockets in a warehouse and send satellites to space for 1/2 the price of the big guys? Impossible they said. Return a rocket booster to earth and reuse it? Impossible, impractical and unthinkable they said.

    • Doodz

      You sound just like an Enron shareholder… just before their share value tanked to jack squat! AAAAND, IT’S GONE!

    • Brent Morrison

      It sounds like a Pyramid Scheme as passing days goes by.

  • Richard Alexander

    Does the name ‘Baghdad Bob’ ring a bell?

  • Six_Tymes

    MEH, Tesla is a giant start up really, things like this SHOULD BE EXPECTED, its fairly common in business.

    • Doodz

      Tesla a ‘start up’? Come on man, it was founded 15 years ago… how much longer are you going to be lying to yourself??? Oh, AND THIS IS NEVER COMMON IN BUSINESS!

      Quite the uninformed cheerleader you are. ELON must love you!

  • Loquacious Borborygmus

    Oh oh, spaghetti o’s!

  • lagunas3ca

    Hey, you don’t ask, you don’t get.

  • S3XY

    Yep, Tesla is doomed. Bankwuptcy is upon them

  • brn

    This whole story stinks of being short on information. There’s clearly a lot we don’t know.

    • Dr Professor Doodz

      Go read more about it on cnbc, fox business, Bloomberg, IBD, WSJ,… there’s plenty we do know.

  • Brent Morrison

    Tesla will be bought by the Chinese GAC or the company that makes Trumpchi.

  • Howfarr

    Musk is S3XY…

    • Howfarr

      That came out wrong… I mean look no further than S3XY below

    • Matthew Daraei

      We understand you! S3XY is Elon Musk in disguise.

The 100-Year Old Batmobile Deserves Much More Than The Batcave

Built by Gary Wales, this Batmobile is based on a 1916 American LaFrance.

Porsche Brings Electric 99X Racer To LA Ahead Of Formula E Debut

The Porsche 99X Electric will take part in this upcoming Formula E season, kicking off this weekend.

2021 Mercedes-AMG GLE 63 And 63 S Are Here To Give BMW’s X5 M Headaches (New Pics)

Mercedes-AMG has just unveiled the 63 and 63 S versions of the 2020 GLE, with 563 and 603 HP respectively.

Book Your All-Electric Mazda MX-30 First Edition In Europe For €1,000

Arriving in the second half of 2020, Mazda’s MX-30 First Edition will cost €33,990 in Germany.

2021 Mercedes-AMG GLS 63 Is Your Glorious 603 HP Luxury 7-Seater SUV (New Photos)

The 2020 Mercedes-AMG GLS 63 4MATIC+ is powered by a 603 HP 4.0-liter twin turbo V8 with EQ Boost.

2020 Mazda CX-30 Comes To America With 186 HP From $21,900 (New Photos)

Mazda is joining the small SUV bandwagon with the CX-30 .

FCA Says PSA Merger Is Safe Despite GM’s RICO Lawsuit

Fiat Chrysler was just hit with a bribery lawsuit as General Motors claims damages.

2020 VW Atlas Cross Sport: A Bet That Should Pay Off Big Time

The VW Atlas Cross Sport will launch in the United States in spring of 2020.

2020 BMW 2-Series Gran Coupe Is Ready To Make A Name For Itself

The BMW 2-Series Gran Coupe is a direct rival for the Mercedes-Benz A-Class Sedan.

Aston Martin DBX Configurator Goes Live, Let’s Go Kill Some Time

Would you prefer your Aston Martin DBX in Madagascar Orange or Minotaur Green?.