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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Hardware & electrical equipment

Tesla asks suppliers to return cash to meet its profitability goal

The electric automaker is aiming to be profitable in its third and fourth quarter this year

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk forecast the company would be profitable in its third and fourth quarters this year. But the way in which the automaker may reach that goal is concerning some investors.

The electric-car maker is reportedly asking some suppliers for refunds in order to hit its goal, as per a report by the Wall Street Journal.

READ: It’s going to cost more to buy a Tesla as carmaker to lose the generous federal tax credit for electric cars

According to a Tesla memo sent to a supplier, the company requested a return of “a meaningful amount of money of its payments since 2016.”

The automaker has yet to comment on the report.

Shares of Tesla were down nearly 4% to US$302.00 in Monday pre-market trading.

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