Tesla Reportedly Asking For Money Back From Suppliers To Become Profitable

Many have questioned Tesla’s financial position. Its CEO Elon Musk has himself acknowledged that the Model 3 is the car that’s going to make or break it for the company. While Tesla has finally met its production goal for the Model 3 it’s yet to turn a profit. A new report reveals that the company is now asking for money back from its suppliers to become profitable.

The Wall Street Journal reports that Tesla has been dispatching memos to its suppliers as it seeks retroactive discounts. It’s basically asking them to give it money back on the payments it has made to those suppliers since 2016.

No concrete figures have been mentioned but Tesla is said to have mentioned in the memos that it’s a “meaningful amount of money.” The reason why it’s sending these memos? Tesla wants to become profitable.

The memo has been sent by a global supply manager at Tesla. The request in the memo has been described as essential to the company’s continued operation. It’s even characterized as an investment in Tesla’s future to ensure long-term growth for both Tesla and its suppliers.

Tesla has now confirmed to the scribe that it’s indeed seeking retroactive discounts from its suppliers for different projects. The company adds that such requests are standard in negotiations but consultants cited by The Wall Street Journal beg to differ.

Adnan Farooqui
Categories: Transportation
Tags: Tesla