In a memo sent to the suppliers last week and reviewed by The Wall Street Journal (subscription required), the company reportedly described the give-backs as "essential to Tesla's continued operation".
According to the Journal, Tesla is facing payments on $230 million in debt in November if its stock price doesn't reach a conversion price of $560.6 per share. All told, there is a chance Tesla might report a profitable quarter when the company posts its Q3 earnings report on August 1.
Inspired Geraint Thomas powers to stage win and yellow jersey
For Geraint Thomas , nothing compares to wearing the Tour de France yellow jersey -now he gets to do it all over again. Is Froome primed for a fifth Tour de France title? Geraint Thomas led out the sprint and won atop Alpe d'Huez.
It's not so unusual for carmakers to ask suppliers for discounts retroactively, and some Japanese automakers have done it before, said Tatsuo Yoshida, an analyst at Sawakami Asset Management Inc.in Tokyo, who worked at Nissan Motor Co. between 1983 and 1999. The remainder of our discussions with suppliers are entirely focused on future parts price and design or process changes that will help us lower fundamental costs rather than prior period adjustments.
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. Chief Executive Officer Elon Musk has said the company does not need to raise cash this year, but several analysts have predicted that the electric vehicle maker would need to raise capital soon. It is spending about $1 billion a quarter as it ramps up manufacturing of the Model 3 sedan, a lower-priced auto that is key to Tesla's plans of becoming a major mass-market automaker.
GST council meet: Sanitary napkins exempted from GST
A Committee led by Bihar Deputy Chief Minister Sushil Modi will look into ways to promote digital payments using these modes. Between Rs 2,500 to below Rs 7,500 GST is levied at 18 per cent and that of Rs 1,000 and below Rs 2,500 it is 12 per cent.
In June, Tesla said it was cutting several thousand jobs to become sustainably profitable without endangering the ramp-up of Model 3 production. So even though Tesla may be able to show its investors a pleasant surprise in the second half, Musk may want suppliers to help him shore up cash flow and profits now.
All of that has to happen while Tesla carries $10.5 billion in debt.
China Just Doubled Oil Shipments To North Korea
He said a second message they delivered was that "to achieve that, full implementation of the sanctions is absolutely crucial". Months later, China, the North's most important trading partner, announced it would suspend imports of North Korean coal.
Tesla shares pared losses and were down 2.7 percent at $305.01.