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.

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 727764

Reported Deaths: 13397
CountyCasesDeaths
Marion995211738
Lake53461965
Allen40457675
St. Joseph35506550
Hamilton35489408
Elkhart28433441
Tippecanoe22359218
Vanderburgh22284396
Porter18668307
Johnson17905377
Hendricks17180315
Clark12930191
Madison12592339
Vigo12431246
Monroe11858170
LaPorte11821210
Delaware10648185
Howard9865216
Kosciusko9378117
Hancock8251140
Bartholomew8052155
Warrick7771155
Floyd7649177
Grant7027174
Wayne7026199
Boone6679101
Morgan6555139
Dubois6150117
Marshall6005111
Dearborn579277
Cass5788105
Henry5688103
Noble558883
Jackson500872
Shelby490296
Lawrence4505120
Harrison434772
Gibson434692
Clinton427053
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Whitley394739
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Steuben383857
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Ohio Coronavirus Cases

Data is updated nightly.

Cases: 1081518

Reported Deaths: 19428
CountyCasesDeaths
Franklin1256551400
Cuyahoga1117782115
Hamilton798901205
Montgomery513291014
Summit47080945
Lucas42049788
Butler38301584
Stark32242906
Lorain24958481
Warren24262298
Mahoning21511588
Lake20618369
Clermont19747238
Delaware18503133
Licking16410212
Fairfield16160199
Trumbull16019468
Medina15247264
Greene15043244
Clark13970299
Wood13065189
Portage12825203
Allen11626232
Richland11323199
Miami10661217
Muskingum8799133
Wayne8784211
Columbiana8766229
Pickaway8551121
Marion8514135
Tuscarawas8470244
Erie7871154
Hancock6906127
Ross6842155
Ashtabula6792170
Geauga6677148
Scioto6405101
Belmont5873167
Union570348
Lawrence5546102
Jefferson5521151
Huron5427119
Darke5347123
Sandusky5337120
Seneca5275121
Athens518858
Washington5153109
Auglaize489584
Mercer480385
Shelby468893
Knox4483110
Madison435561
Putnam4278100
Fulton421669
Ashland421489
Defiance419297
Crawford3970107
Brown393857
Logan381576
Preble379398
Clinton371263
Ottawa366679
Highland354662
Williams338575
Champaign331458
Guernsey315653
Jackson312151
Perry294850
Morrow284639
Fayette281550
Hardin270664
Henry268466
Coshocton264557
Holmes2593101
Van Wert243363
Adams237752
Pike237534
Gallia235349
Wyandot230855
Hocking215262
Carroll191247
Paulding172540
Meigs144740
Noble133337
Monroe132042
Morgan108323
Harrison107637
Vinton82815
Unassigned02
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A cold start Saturday with widespread frost expected. We'll see plenty of sunshine for most of the day. Then, clouds build in during the late afternoon and evening.
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