Tesla’s shares drop on leak of embarrassing memo asking for money back

24 July, 2018, 18:56 | Author: Shannon Aguilar
  • Tesla shares sink on reports carmaker is running short on cash

He said it's more serious if the company needs more cash to continue operating, noting that investors are likely to be concerned if Tesla has to take unusual steps to shore up its finances. It has promised to produce 5,000 Model 3s in a single week, but has only met that goal last quarter after months of delays.

The company's shares dropped as much as 5.9pc yesterday, following the report. The electric-car maker made the request to fewer than 10 suppliers related to capital expenditures for long-term projects that started as far back as 2016 and aren't complete, a spokesman said in a statement. Tesla called such requests a standard part of procurement negotiations to improve its competitive advantage, especially as it increases Model 3 production, the Journal said.

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. Panasonic Corp, Magna International Inc, Continental AG and Robert Bosch GmbH are among Tesla's suppliers, according to data compiled by Bloomberg.

"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.

Tesla's Australia and Asia media office, as well as a spokesman and spokeswoman in the US, didn't reply to emails seeking comment on the Journal report.

Tekashi 6ix9ine Kidnapped, Robbed, Hospitalized
The gunman drove away with Hernandez still in the back auto , but he was able to jump out and run away, according to sources. Sources told TMZ that three gunmen wearing hoods got out of the vehicle , grabbed 6ix9ine, and pistol-whipped him.

Trump convenes a closed meeting with Congress
By extension, he is telling Putin and the world that he believes the shady Russian president over his own intelligence agencies. But I have not seen any concessions, neither as regards the annexation of Crimea nor the war in Ukraine", Morawiecki said.

Trump corrects his quote, says misspoke on Russian meddling
The photo was taken before Trump and Putin's almost two-hour one-on-one meeting, which was followed by a press conference. Immediately after Monday's news conference, Trump's mood was buoyant, people familiar with the matter said.

Its CEO Elon Musk also tweeted that any costs accounted for in the next quarter would not be retroactive.

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.

Musk was responding to a post by Electrek that cited the Journal article and he didn't elaborate.

The Tesla logo is seen at the entrance to Tesla Motors' new showroom in Manhattan's Meatpacking District in New York City, U.S., December 14, 2017.

Recommended:



Popular

New photo of Prince George released to mark his 5th birthday
It seems like only yesterday Prince William and Catherine were introducing their little bundle of joy to the world. The picture, tweeted by Kensington Palace , came with a message of thanks from the duke and duchess.

Neymar: I am 100 percent with PSG
I know what they say about me, and I know what I have to about it'. "I got used to the criticism". If you know Neymar , you know how much quality he has and how special he is.

Ton up for de Bruyn but South Africa suffer Series defeat
Sri Lanka players celebrate the fall of a South African wicket during day four of the second Test in Colombo on 23 July 2018. South Africa were 19-3 at lunch in its first innings and lost the remaining seven wickets in the afternoon session.

Iran's President warns Donald Trump against 'mother of all wars'
Pompeo also blamed the government for Iran's economic woes, which have led to anti-government protests nationwide. Pompeo refused to distinguish between moderates and radicals at the heart of the Islamic republic.

One killed as 'disturbed' gunman opens fire Toronto
I am thankful to all first responders who came as quickly as possible to help people in the wake of this horrific incident. Frank Gunn/Canadian Press Police work at the scene of a mass casualty incident in Toronto on July 22, 2018.

Contentious bill defines Israel as Jewish nation
The second system is that of worldwide humanitarian law (IHL), which is applicable to an occupied territory. It does not restrict individual rights, they argue, or create special privileges for Jews.

Liverpool signing Alisson: Anfield atmosphere helped sway decision
Undoubtedly a position in need of an upgrade, Alisson is hailed as a player who will bring exactly what the Reds need by most. In the Premier League, Manchester City are the Parisian's equivalent in terms of virtually unlimited spending power.

Pogba has to show us World Cup-winning form, urges Mourinho
Martial returned to Carrington for pre-season training last week, just a month after his future was plunged into doubt. I sent a nice message before the World Cup (but) during the World Cup , I decided not to disturb anyone", he said.

Maryland Gov. Hogan criticizes Trump, calls Putin a 'thug'
When asked by reporters a few hours earlier if the USA was still being targeted by Russian Federation , he had answered "no". When asked about special counsel Robert Mueller's ongoing probe, the president once again said there's been no collusion.

Chelsea reportedly consider re-signing Petr Cech
Both shone for their country at the World Cup in Russian Federation , where they claimed third-place in the tournament. Giroud became a key player for the Blues last season but the Mirror claim Sarri is prepared to let him go.