Monday, July 23, 2018

Tesla Asks Suppliers for Cash Back to Help Turn a Profit

Tesla showroom in Washington D.C.
Tesla Inc.has asked some suppliers to refund a portion of what the electric-car company has spent previously, an appeal that reflects the auto maker’s urgency to sustain operations during a critical production period, reports The Wall Street Journal.

The company said it is asking its suppliers for cash back to help it become profitable, according to a memo reviewed by the Journal that was sent to a supplier last week. Tesla requested the supplier return what it calls a meaningful amount of money of its payments since 2016, according to the memo.

The auto maker’s memo, sent by a global supply manager, described the request as essential to Tesla’s continued operation and characterized it as an investment in the car company to continue the long-term growth between both players.

Wow, if you can't stay flush with cash during the boom phase of the Fed-created boom-bust business cycle....



  1. If they are going to do this sort of thing they are running the risk of finding themselves fired as a customer from suppliers that don't need Tesla Motors to stay in business. Guess Musk never learned not to be the customer that is 2% of the business and 80% of the hassle.

  2. Odd that Musk would ask for cash from suppliers, when he's used the state to force taxpayers to help fund his business. I guess he finds the supplier lobby to be more powerful than the taxpayer lobby.