Elon Musk tweets, Tesla's stock tumbles

Another tweet from Elon Musk, and Tesla stock is tumbling.Shares are down more than 3% after ...

Posted: Jul 23, 2018 7:18 PM
Updated: Jul 23, 2018 7:18 PM

Another tweet from Elon Musk, and Tesla stock is tumbling.

Shares are down more than 3% after The Wall Street Journal reported that Tesla is asking some suppliers for partial refunds, another sign of a cash crunch at the company.

Tesla burned through $700 million in cash last quarter, and its cash reserves dipped 20%. Analysts say Tesla needs to sell a lot more cars. Musk has pushed back on naysayers, arguing that the company will be profitable this quarter and next.

The Journal cited a memo from a manager to a supplier, saying that all suppliers are being asked to help Tesla become profitable.

Musk, Tesla's co-founder and CEO, confirmed on Twitter that Tesla is asking for money from its suppliers.

He wrote early Monday: "Only costs that actually apply to Q3 & beyond will be counted. It would not be correct to apply historical cost savings to current quarter."

Related: Tech analyst tells Elon Musk: Time to take a break from Twitter

A Tesla spokesman told CNNMoney that it asked "fewer than 10" suppliers for money back for long-term projects that began in 2016 and have not yet been completed, The spokesman said the cost savings will help Tesla increase its production volume, though he claimed Tesla would be profitable without the concessions.

"Now that we're in a stronger position with Model 3 production ramping [up], it is a good time to improve our competitive advantage in this area," a company spokesman said. "We're focused on reaching a more sustainable long term cost basis, not just finding one-time reductions for this quarter."

The Journal said Tesla confirmed that it is "seeking price reductions from suppliers for projects, some of which date back to 2016, and some of which haven't been completed."

Related: 24% of Tesla Model 3 orders have been canceled, analyst says

Tesla in late June finally hit an important production target for the Model 3, its most accessibly priced electric car.

Analysts are also concerned about erratic tweets from Musk. He has lashed out at journalists for critical coverage of Tesla, and earlier this month he tweeted an unfounded and disparaging claim about a cave diver who participated in the rescue of a Thai soccer team.

New York Coronavirus Cases

County data is updated nightly.

Confirmed Cases: 448052

Reported Deaths: 33085
CountyConfirmedDeaths
Queens714747239
Kings667377314
Bronx524684940
Nassau460522201
Suffolk459562011
Westchester377181454
New York329383178
Richmond156891085
Rockland14747675
Orange11760498
Erie10873689
Monroe5857289
Dutchess5050153
Onondaga4185205
Albany2979134
Oneida2369123
Ulster223595
Niagara1707101
Putnam156963
Sullivan156848
Broome145069
Schenectady137448
Saratoga98517
Rensselaer89542
Columbia58037
Chautauqua5359
Madison48417
Ontario45435
Oswego4183
Tompkins3900
Warren35433
Steuben34242
Fulton33124
Otsego3245
Orleans32254
Greene31918
Herkimer31810
St. Lawrence3144
Genesee3095
Wayne3065
Chemung3053
Washington28714
Cattaraugus2496
Chenango2487
Tioga22225
Montgomery2194
Livingston2018
Cayuga1952
Jefferson1600
Essex1570
Clinton1545
Cortland1500
Wyoming1315
Delaware1294
Seneca1053
Allegany951
Schoharie830
Franklin640
Yates627
Lewis500
Schuyler370
Hamilton140
Unassigned019
Utica
Clear
47° wxIcon
Hi: 59° Lo: 34°
Feels Like: 44°
Oneonta
Clear
41° wxIcon
Hi: 58° Lo: 33°
Feels Like: 41°
Herkimer
Clear
47° wxIcon
Hi: 58° Lo: 34°
Feels Like: 44°
Thendara
Clear
47° wxIcon
Hi: 52° Lo: 31°
Feels Like: 44°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Click here to learn more about A Healthier Mohawk Valley
Saluting Those Who Are Proud 2 Serve
WKTV Golf Card - Under 150 left