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Tesla Requesting Cash From Suppliers Amid Its Losses

Posted On July 23, 2018 1:20 pm
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Source: Wikipedia Commons

Tesla may have finally hit its production target of the Model 3, but the company is not yet out of the woods.

According to a report from The Wall Street Journal, Tesla has asked suppliers to refund part of the money it’s previously paid to them.

It is unclear how much cash back Tesla has requested, or how many of its suppliers have received this request. The WSJ calls the sum “meaningful,” and reports that the refunds are on payments made since 2016.

The appeal was reportedly made as part of a wider effort to make Tesla profitable. The request, which was sent in the form of a memo to several suppliers, noted that the cash back would be necessary for Tesla’s “continued operation,” calling it an investment in “long-term growth.”

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