Tesla reportedly asked suppliers for cash back to help it reach profitability – TechCrunch

From Techcrunch

In an unusual move, Tesla reportedly asked some suppliers to return part of the money it’s paid them since 2016, including for past work. According to the Wall Street Journal, which reviewed a memo Tesla sent to a supplier last week, the electric auto maker said it is asking suppliers for refunds to help it reach profitability. This stokes concerns about the company’s cash flow, despite earlier assurances from Tesla founder and CEO Elon Musk that it will be profitable in the third and fourth quarters of this year.

After months of production delays for the Model 3, Tesla recently hit a major milestone, announcing earlier this month that it reached its 5,000-per-week production target for the vehicle.

According to the Wall Street Journal, the memo, sent by one of Tesla’s global supply managers, said the company is requesting back a “meaningful” portion of its payments since 2016. Tesla described it as not only important for Tesla’s operations, but an investment in…

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