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 6:18 PM
Updated: Jul 23, 2018 6:18 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.

Minnesota Coronavirus Cases

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Reported Deaths: 7629
CountyCasesDeaths
Hennepin1249281777
Ramsey52501896
Dakota46829470
Anoka42767458
Washington27423291
Stearns22555224
St. Louis18138313
Scott17550135
Wright16374149
Olmsted13397102
Sherburne1201695
Carver1067248
Clay826092
Rice8200110
Blue Earth762544
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Kandiyohi667985
Chisago619852
Otter Tail585884
Benton582998
Goodhue483874
Douglas475481
Mower470633
Winona461351
Itasca459463
Isanti439964
McLeod430561
Morrison424862
Beltrami407861
Nobles407650
Steele397916
Polk389072
Becker386755
Lyon363853
Carlton352856
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Pine335023
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Todd285633
Meeker263342
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Red Lake4017
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Cook1720

Iowa Coronavirus Cases

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Cases: 371050

Reported Deaths: 6051
CountyCasesDeaths
Polk58259640
Linn21218339
Scott20307248
Black Hawk16139312
Woodbury15238230
Johnson1461985
Dubuque13509211
Dallas1128899
Pottawattamie11225174
Story1071448
Warren583891
Clinton561593
Cerro Gordo554093
Sioux517474
Webster515794
Muscatine4882106
Marshall486676
Des Moines467472
Wapello4338122
Buena Vista426940
Jasper421172
Plymouth403181
Lee382356
Marion366076
Jones300957
Henry294637
Bremer288461
Carroll286952
Boone268634
Crawford268440
Benton259855
Washington257251
Dickinson249344
Mahaska232651
Jackson225242
Clay216727
Kossuth216166
Tama211971
Delaware211143
Winneshiek198635
Page194522
Buchanan193833
Cedar192423
Hardin187444
Fayette186643
Wright186040
Hamilton181951
Harrison180073
Clayton171157
Butler166335
Madison164619
Mills163824
Floyd163442
Cherokee159338
Lyon158841
Poweshiek157036
Allamakee152952
Hancock150334
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Cass139255
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Grundy137333
Emmet135841
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Guthrie123332
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Keokuk96732
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Davis85225
Monona82931
Osceola78916
Greene78011
Lucas77923
Worth7618
Taylor66812
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