Tesla passes the begging bowl around
The car maker is asking suppliers to help make it profitable by returning a ‘meaningful’ amount of payments it has made
Sydney — Tesla asked some suppliers to return a portion of its payments to them in an attempt by the electric-car maker to turn a profit, the Wall Street Journal reported, citing a memo sent to a supplier last week. The company, whose eroding cash position has alarmed investors, requested a "meaningful" amount of payments made since 2016 to be returned, according to the letter. The note stated all suppliers had been asked to help the Californian company become profitable. The request indicates more struggles for Tesla in its quest to reverse losses. While CEO Elon Musk proclaimed Tesla a "real" car maker after hitting a weekly goal of producing more than 5,000 mass-market Model 3s, there is doubt about whether the volumes can be sustained. Some of the increased output, pivotal for boosting revenue and earnings, came from a makeshift tent. Tesla shares fell 4.1% in pre-market trading on Tradegate on Monday. The US car manufacturer declined to comment on the specific memo, but confirm...
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