Tesla has asked some suppliers to refund money paid by the electric auto maker since 2016, the Wall Street Journal reported https://www.wsj.com/articles/tesla-asks-suppliers-for-cash-back-to-help-turn-a-profit-1532301091?mod=hp_lead_pos4 on Sunday citing a memo. What's more, a recent teardown of the Model 3 suggests that Tesla's mass market EV might be far more profitable than initially anticipated.
A memo sent to suppliers allegedly asked the third parties to send back a "meaningful" amount of cash for work dating back as early as 2016. The company has been burning cash at worrying rates, with US$1 billion spent during the first quarter of this year alone.
Musk, Tesla's co-founder and CEO, confirmed on Twitter that Tesla is asking for money from its suppliers.
This strategy is part of a plan announced previous year 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 reasoning behind Tesla's request is to help the company become profitable.
"Only costs that actually apply to Q3 & beyond will be counted", Musk said in a tweet late Sunday.
Tesla in late June finally hit an important production target for the Model 3, its most accessibly priced electric auto.
The request indicates more struggles for Tesla in its quest to reverse losses.
Tesla has since commented on the WSJ story, telling Reuters that it has contacted a small number of suppliers as part of a broader effort to secure price cuts.
Shares in the company were last down 3.4 percent to $303.22.
As a refresher, Musk toldBloomberg: "Once we break through to mass-market cars, where mass-market is on the order of a quarter million vehicles per year, I can not see us doing a 1.2-million-vehicle program of one particular model".
Supply-chain consultants told the paper that sometimes automakers will demand a reduction in price for a current contract going forward or use leverage of the promise of a new deal to get upfront savings.
Reports of gunfire in the city's Greektown neighborhood began at 10 pm local time (0200 GMT Monday), CityNews.com reported. Saunders said there was no known motive for the attack, but authorities are still investigating the incident.
However the lack of a top four finish and criticism over Chelsea's stodgy football did for the former Italy coach. Sarri becomes Chelsea's 13th permanent boss of Roman Abramovich's ownership, which began in June 2003.
Posting on Twitter, Mr Trump said people "who wanted to see a boxing match" were bothered by his rapport with Mr Putin . The sentence should've been, and I thought it would be maybe a little but unclear on the transcript ...
President Vladimir Putin says Russian and other security services thwarted almost 25 million cyberattacks linked to the World Cup. There were nearly no protests, though four demonstrators barged onto the field during the final and were quickly hauled away.
Powell's plan to continue gradually raising short-term rates was undermining the administration's efforts to spur economic growth. The Fed has raised rates five times since Trump took office in January 2017, and has penciled in two more hikes for this year.
Trump also expelled dozens of Russian diplomats earlier this year in response to the poisoning of a former Russian spy in the U.K. I think the USA has been foolish. "We've all been foolish", he said, before veering into a discussion about his election victory.
It was also the first time since November 2014 against Sri Lanka, that Kohli got out to spinners in three consecutive ODI innings. Instead Root and Morgan held back waiting to see if the ball would go for four. "It was just an absolute vehicle crash".
The flare-up is the latest as demonstrations and clashes on the frontier since March have seen at least 149 Palestinians killed. A relative of a Palestinian who was killed by Israeli troops east of Khan Younis reacts in the central Gaza Strip Friday.
The reporter said that she asked Trump a follow-up question , "No?" But his attempt at cleanup fell flat to some in the West Wing. And it will now be etched as part of Trump's presidency, no matter how many double negatives he tries to claim.
Well, we still don't, but now at least we know what they weren't willing to part with for the disgruntled Spurs star. Wojnarowski and Haynes are reporting that neither Leonard nor DeRozan are "expressing enthusiasm" for the swap.
People must come out to vote in historic election, urges Imran
Durrani is contesting for NA-35 under the Muttahida Majlise-e-Amal (MMA) banner against Pakistan Tehreek-e-Insaf chief Imran Khan. Almost 106 million Pakistanis, including more than 19 million new voters, will be eligible to cast their ballots on Wednesday.
Trump warns Iran to never threaten U.S.
Pompeo took particular aim at several of Iran's judicial, military and political leaders, accusing them of widespread corruption. Iranian leaders reject United States claims about developing nuclear weapons and supporting terrorism. "BE CAUTIOUS!", he wrote.
Trump accuses China, EU of currency manipulation
Benchmark 10-year USA notes last fell 12/32 in price to yield 2.8894 percent, from 2.847 percent late on Thursday. He said the American Federal Reserve's course of tightening monetary policy "now hurts all that we have done".
Epic Games celebrating Fortnite's one-year anniversary
Funko and Epic Games have signed a new deal to launch a new line of Fortnite-themed toy, collectibles, and other related products. It now looks like another event is making its way to the game next week with its own unique challenges and quests.
North Korean media pressure South to end Korean War
Delattre said it was important to avoid "any premature signal of a loosening of sanctions that would be a counter-message". Trump insists he has "solved" the North Korea problem and the nation is no longer a nuclear threat.
Blue Origin test flight simulates space launch emergency
There is speculation that Bezos himself, the world's richest person, will be among the first people to fly on New Shepard. Its effectiveness is essential to ensuring the safety of any people who might ride aboard the capsule in the future.
‘Shameful: US lawmakers blast Trump over Putin summit
Bombarded with questions, the leaders laid out at the press conference where US-Russia relations were heading. Coats added that Russian Federation remains behind "ongoing, pervasive efforts to undermine our democracy".