Tesla Stock Skids on Report It Asked Suppliers for Refunds

Associated Press |

Image via Steve Jurvetson/Wikimedia

NEW YORK (AP) — Shares of Tesla  (TSLA) are down sharply after a report that the company asked suppliers for refunds to help it turn a profit.

A memo provided to The Wall Street Journal shows Tesla asked a supplier to return what it calls a meaningful amount of money on its payments since 2016. The memo said all suppliers were being asked to help the company become profitable.

The request raises more questions about Tesla's cash position. The 15-year-old company has never reported an annual profit. It is spending about $1 billion a quarter as it ramps up manufacturing of its Model 3 sedan. It had $2.7 billion in cash on hand at the end of the first quarter.

Tesla stock fell nearly 5 percent in early trading Monday.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
TSLA Tesla Motors Inc. 365.71 -11.08 -2.94 6,337,555 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

Level Headed at World Crypto Con - Steve Beauregard

Bloq.com CRO Steve Beauregard joins Jack Brewer at World Crypto Con.

Emerging Growth

DirectView Holdings Inc

DirectView Holdings Inc designs and installs surveillance systems, digital video recording and services. The company through its subsidiaries operates within two divisions security and surveillance and video conferencing services.