Tesla Turns To Suppliers To Help It Become Profitable

Tesla Turns To Suppliers To Help It Become Profitable

The electric carmaker has been burning through cash as it speeds up production of its Model 3 sedan.

Tesla has asked some of its suppliers to refund a portion of what the auto maker has already spent to help it become profitable, the Wall Street Journal reports.

The memo notes the refund was essential for Tesla's survival and would be an investment in the company to ensure the long-term partnership between it and the suppliers.

Despite Musk's explanation, Tesla started Monday's trading on the negative, hitting as low as $293.57 per share after the opening bell.

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.

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However, now with Chelsea looking for a replacement for Hazard, the Blues have returned their eyes to the former Monaco starlet. Speaking after the game, manager Jose Mourinho described the post World Cup finals pre-season as "strange".

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The industry took little heed, said Robert Mongeluzzi, a Philadelphia attorney who has represented victims of duck boat crashes. Missouri law requires boat passengers ages 7 and younger to wear life jackets on the water, but commercial vessels are exempt.

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Molia then grabbed a second try moments later, burrowing over from close range to cap a dominant start by the New Zealanders. New Zealand's men and women's teams now hold world titles in both seven-a-side and 15-a-side versions of the game.

"We still have the same concerns, though, about general cash flow needs for the company, production quality issues, automation or lack thereof, as well as concerns on profitability". The 15-year-old company has reported only two quarterly profits in its history and has never made a profit for a full year. While Musk has said the company does not need to raise cash this year, several analysts have predicted that the electric vehicle maker would need to raise capital soon.

"I haven't heard of this being done before, and I've been following the industry for 20 years". The memo further noted that all Tesla suppliers are being asked to help the company reach profitability. "It sounds like something that happens when you're struggling".

Musk 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".

Tesla burned through more than $700 million in the first quarter - leaving it with $2.7 billion cash on hand.

"If there are any one-time windfalls that aid in Tesla achieving its profit goals, we expect the market would view that as unsustainable", said Jamie Albertine, senior automotive analyst for Consumer Edge. One way to do that is by selling stock, which could send its share price lower still.

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