Tesla says it requested supplier discount for ongoing projects

Tesla says it requested supplier discount for ongoing projects

The company, which has already tapped the debt and equity markets for much-needed cash, turned recently to some suppliers for "meaningful" rebates on payments made to them since 2016, according to a report.

Still, industry analysts said it is unusual for automakers to request refunds for two previous years, as Tesla has demanded. In a memo sent to several suppliers requesting money back, Tesla said the cash back would be necessary for Tesla's "continued operation" and that it was an investment in "long-term growth".

A tweet from co-founder Elon Musk has confirmed this.

This strategy is part of a plan announced a year ago where Tesla was able to negotiate longer payment terms to about 60 days for Model 3 parts, which would allow the auto maker to make the vehicle and get paid for it before the bill is due to suppliers.

The refund request applies to money that Tesla has paid to some suppliers since 2016, according to the Journal.

Loris Karius Hits Back At Critics After Mistake In Pre-Season Friendly
Five minutes later, the Reds broke the deadlock through Virgil Van Dijk , who headed home Andrew Robertson's corner. A slew of derogatory Tweets were aimed at the 24-year-old.

In early May, Musk cut off a Morgan Stanley analyst who had asked if the company should raise more capital while it could, even if it did not need it. Musk responded that he "specifically" did not want to, and called the analyst's questions "so dry".

Separate from today's news, Whiston also lowered his Tesla fair-value estimate to $179 from $235, citing Chief Executive Elon Musk's recent comments in which he said that that he doesn't envision the company producing mass-market volume of any one particular model.

Instead, he has told investors that he expects the firm to turn a profit in the third quarter of this year.

As pressure mounted to ramp up Model 3 production, Musk set up a tent outside Tesla's plant in Fremont, California. "It would not be correct to apply historical cost savings to current quarter".

Last month, Tesla allowed all existing Model 3 deposit holders to order their cars, which required those buyers interested in the offer to give the company an additional, non-refundable $2,500 deposit, which some observers saw as another way for Tesla to pull revenue forward.

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