The following is an excerpt from Alex Perry | June 23, 2018 | ibtimes.com |
Another negative news report about electric car manufacturer Tesla (TSLA) sent the company’s stock price falling to begin the week. The Wall Street Journal reported Sunday that Elon Musk’s ambitious car company had asked suppliers to refund Tesla payments so the company can become profitable.
As a result, Tesla shares are down roughly 4 percent at the time of writing.
Profitability is one of many concerns investors have about Tesla. Musk committed to making the company profitable in the third and fourth quarters of this fiscal year back in April. The Palo Alto, California-based company reported a profit in the third quarter of 2016, but ran through $3.4 billion in cash last year, per CNBC.
The Tesla memo that prompted the Journal report was not clear about which suppliers were asked for retroactive refunds. It did, however, report that all suppliers were contacted about helping the company attain profitability. At least some of those suppliers never got the request, according to the Journal.
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