Tesla asked suppliers for money back to boost profitability

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"The Silicon Valley electric auto company said it is asking its suppliers for cash back to help it become profitable, according to a memo reviewed by The Wall Street Journal that was sent to a supplier last week".

Concern that the memo signalled that money-losing Tesla was scrambling to find cash to fund its current operations and multiple long-term projects sent shares down. Tesla declined to comment on the memo, but did confirm that they have been seeking price reductions from suppliers for their recent projects.

An afternoon recap of the day's most important business news, delivered weekdays. The newspaper said it was unclear how many companies had received the request.

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Sources, however, said the tax rate reduction is likely to cost around Rs 8,000-10,000 crore annually to the exchequer. Around 90 consumer items, many of them popular with urban middle-class voters, will be impacted by the tax cut.

Tesla's cash position is front of mind for investors right now.

Tesla may have finally hit its production target of the Model 3, but the company is not yet out of the woods. The 15-year-old company has reported only two quarterly profits in its history and has never made a profit for a full year.

Meanwhile Musk said earlier this year that he was sleeping on the factory floor because he was so busy trying to ramp up production.

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Coinciding with the launch is a special PS4 featuring white spider logo from the game; and a special red DualShock 4 controller. The bundle will be available in the US and Canada for $399.99 United States dollars and $499.99 CAD respectively.

Itay Michaeli, an analyst for Citi Investment Research, said automakers sometimes ask for discounts from suppliers, but those are relatively minor matters.

Tesla had about $3.2 billion in cash as of March 31, after spending about $1 billion in the quarter. But they said if Tesla has to try this hard to meet its target, it might be a self-defeating effort. That said, Whiston writes that "Tesla's mass-market ambitions over the next decade may be much smaller than we previously thought".

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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The legislation, defined as a 'basic law, ' granting it quasi-constitutional status, will likely face a challenge at the Supreme Court.

The company recently reached its goal of producing 5,000 Model 3 units in a single work week.

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