Stock tumbles after Tesla reportedly asked suppliers for refunds
Tesla stock skids on report it asked suppliers for refunds
NEW YORK — Shares of Tesla are down sharply after a report that the company asked suppliers for refunds to help it turn a profit.
A memo provided to The Wall Street Journal shows Tesla asked a supplier to return what it calls a meaningful amount of money on its payments since 2016. The memo said all suppliers were being asked to help the company become profitable.
The request raises more questions about Tesla’s cash position. The 15-year-old company has never reported an annual profit. It is spending about $1 billion a quarter as it ramps up manufacturing of its Model 3 sedan. It had $2.7 billion in cash on hand at the end of the first quarter.
Tesla stock fell nearly 5 percent in early trading Monday.
