Tesla Stock Stumbles as Company Asks Suppliers for Help Turning a Profit

24 July, 2018, 01:43 | Author: Mary Valdez
  • Tesla Asks Suppliers for Cash Back in a Bid to Achieve Profitability

"Negotiation is a standard part of the procurement process, and now that we're in a stronger position with Model 3 production ramping, it is a good time to improve our competitive advantage in this area".

"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 vehicle company to continue the long-term growth between both players", reports The Wall Street Journal. The memo came from a global supply manager and said the request was essential to Tesla's continued operations, the Journal said. The memo said all suppliers were being asked to help the company become profitable.

Efraim Levy, a senior equity analyst for CFRA, said he found Tesla's request unusual.

It is unclear how much cash back Tesla has requested, or how many of its suppliers have received this request.

The leak comes as Musk continues to unnerve investors, with Tesla shares falling from a year high of US$370 in mid-June to around US$301 on Monday.

Separate from today's news, Whiston also lowered his Tesla fair-value estimate to $179 from $235, citing Chief Executive Elon Musk's recent comments in which he said that that he doesn't envision the company producing mass-market volume of any one particular model.

Trump claims 'illegal' spying after warrant papers unveiled
The release of the document is noteworthy as it marks the first public disclosure of a highly sensitive FISA request. The FBI cites "Source #1" for that information; that refers to former British intelligence agent Christopher Steele.

Woods shoots 66, in contention at British Open
A charging Tiger Woods was breathing down the necks of the leaders early in his final round of an absorbing British Open at Carnoustie on Sunday.

Ohio State has '95 records of student complaint about doctor
The lawsuit cites the initial report from NBC News from other victims who said they told Jordan about the abuse but were ignored . The head coach back then, Russ Hellickson, similarly has said he would have reported any abuse if he had been aware of it.

"I haven't heard of this being done before, and I've been following the industry for 20 years". "It sounds like something that happens when you're struggling".

Itay Michaeli, an analyst for Citi Investment Research, said automakers sometimes ask for discounts from suppliers, but those are relatively minor matters.

In early May, Musk cut off a Morgan Stanley analyst who'd asked if the company should raise more capital while it could even if it doesn't need it. Musk responded that he "specifically" didn't want to, and called the analyst's questions "so dry". Tesla has been burning through cash at a rate of about $1bn a quarter, or more than more than $7,430 every minute, according to data compiled by Bloomberg, and finished the first quarter with $2.7bn in cash on hand. One way to do that is by selling stock, which could send its share price lower still.

After the memo was leaked over the weekend, Musk tweeted: "Only costs that actually apply to Q3 & beyond will be counted". But they said if Tesla has to try this hard to meet its target, it might be a self-defeating effort.

Last month, Tesla said it was cutting several thousand jobs to become sustainably profitable without endangering the ramp up of Model 3 production.


  • College student Mollie Tibbetts missing in Iowa after going running

    College student Mollie Tibbetts missing in Iowa after going running

    Hundreds of volunteers combed the rural area, searching barns, dirt roads, cornfields and vast farmlands on Friday and Saturday. Local law enforcement also has plans to canvas the student's neighborhood and attempt to retrace her jogging route.
    Donald Trump tops Google image search results for

    Donald Trump tops Google image search results for "Idiot"

    Rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition and Android has enabled all of them. If it fails to, it will accrue an additional fine of up to 5 percent of its parent company, Alphabet's , daily turnover.
    Ailing Marchionne replaced by Elkann as Ferrari chairman

    Ailing Marchionne replaced by Elkann as Ferrari chairman

    LOUIS CAMILLERI The new Ferrari CEO was already a board member at the luxury sportscar maker before his latest appointment. A Fiat Chrysler sign is seen outside the Chrysler World Headquarters in Auburn Hills, Mich., in this file photo.
  • Trump launches media campaign to create opposition to Iranian leaders

    Some of the information the administration has disseminated is incomplete or distorted, the current and former officials said. Washington has also been accused of posting propaganda on social media aimed at stirring up unrest in Iran .
    Indians can now forward 1 WhatsApp message only five times

    Indians can now forward 1 WhatsApp message only five times

    The messaging service said its users in the country forward more messages, videos and pictures than any other country. WhatsApp has also bought full-page adverts in Indian newspapers with tips on how to spot misinformation .
    Impact of U.S-China trade tariffs on U.S. companies

    Impact of U.S-China trade tariffs on U.S. companies

    But what has occurred is an 8 percent fall in the Chinese currency against the dollar since the trade spat began in the spring. Benchmark 10-year USA notes US10YT=RR last fell 14/32 in price to yield 2.8968 percent, from 2.847 percent late on Thursday.
  • Video shows deadly shooting over parking spot

    Video shows deadly shooting over parking spot

    The security footage shows Michael Drejka confronting a driver who parked in a handicapped spot outside the Circle A Food Store. In a news conference addressing the incident, Pinellas County Sheriff Bob Gualtieri spoke about the " Stand Your Ground " law.
    Jurgen Klopp responds brilliantly to talk of hypocrisy over Liverpool spending

    Jurgen Klopp responds brilliantly to talk of hypocrisy over Liverpool spending

    When we are convinced about it then thank God our ownership believes that much in the project that they say "okay, let's do it". That is maybe the only difference. "He's had a long year". 'Loris is an outstanding goalkeeper, ' said Klopp.
    LA police arrest suspect after deadly hostage standoff

    LA police arrest suspect after deadly hostage standoff

    Authorities urged people to stay away from Hyperion Avenue and Griffith Park Boulevard until the investigation wrapped up. The man exchanged gunfire with police again and that's when Corado was shot and killed, Police Chief Michel Moore said.
  • Kelly Addresses Sex Cult & More on 19 Minute Song ‘I Admit’

    Kelly Addresses Sex Cult & More on 19 Minute Song ‘I Admit’

    Kelly , accusing the singer of sexual battery, knowingly infecting her with herpes and locking her in rooms for punishment. Attempting to clear his name, he wrote: 'I'm not convicted, not arrested , dragged my name in the dirt.
    Ex-head of CIA: Trump should disclose details of conversation with Putin

    Ex-head of CIA: Trump should disclose details of conversation with Putin

    Now with Pompeo heading the State Department, Coats has been thrust into the limelight as the voice of the intelligence community. The news of the invitation to the Russian leader was also confirmed on Twitter by Sarah Sanders, the White House Press Secretary.
    Apollo astronaut: Colonization is ‘certainly feasible’ on the moon

    Apollo astronaut: Colonization is ‘certainly feasible’ on the moon

    More than 40 years after Apollo 11 landed on the moon for the first time, NASA has started to identify likely sites for its next moon landing circa 2020, ahead of its attempts to send humans off to Mars.


Johnny Manziel Traded To Montreal Alouettes
Crowley claimed in court papers that Manziel hit her so hard during the incident that she lost hearing in her left ear. The Montreal Alouettes are hoping quarterback Johnny Manziel can help turn the season around before it's too late.

Mesut Ozil racist abuse condemned by anti racism body Kick It Out
Some German politicians questioned their loyalty to Germany and suggested they should be removed from the squad. Ozil made his Germany debut under Low in February 2009 and went on to win 92 caps, scoring 23 goals .

Neymar rejects Ronaldo’s role at Real Madrid
Neymar also touched on a possible move to Real Madrid: "The guys who come up with these stories seem to know more about my life than I do".

'Supergirl' Season 4: Nicole Maines as Cast as Trans Superhero Dreamer
Previously, it had been revealed that Supergirl was adding to its series-regular cast Jesse Rath as the Legion of Super Heroes' Brianiac-5 and Sam Witwer as Agent Liberty.

England beat South Africa to reach World Cup Sevens final
Ravouvou put the result beyond doubt with his second try with just two minutes remaining after a brilliant offload by Jona Nareki. The New Zealand men's team also progressed in the tournament, despite poor discipline threatening to derail in their campaign.

Arsenal Legend Reveals How Unai Emery Might Perform In His First Season
Arsenal's players looked in good spirits as they made their way to their pre-season tour of Singapore in style on Sunday morning. He knows he's at a big club, and has a lot of pressure, but I think he has a big character and spirit. "He won in Spain".

Kisner drops out of lead at British Open
But in his traditional last-day red shirt he continued where he left off the previous day to turn the screws on those above him. Leaders are on the range at the British Open, where they will be greeted by warm breezes in the final round at Carnoustie .

Ritz products recalled over salmonella fears
The Canadian Food Inspection Agency has notified the public of the recalls from No Name and Christie brand products (CFIA). Mondelez Global says it's voluntarily recalling some of its Ritz Cracker products over potential risk of salmonella.

Alleged spy Maria Butina paid by Russian billionaire Konstantin Nikolaev
The report described the meetings as helping bring together "leading figures from the financial institutions of the United States and Russian Federation ".

Danica Patrick's opening monologue at the ESPYs went for some easy jokes
The fake trailer for "Me, Danica " re-imagines the Tonya Harding biopic as Danica's much less controversial life in racing. The awards recognize the best athletes in addition to the experiences and the best all-around members of the community.