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.

Huntsville/Redstone
Clear
53° wxIcon
Hi: 64° Lo: 49°
Feels Like: 53°
Muscle Shoals
Partly Cloudy
54° wxIcon
Hi: 65° Lo: 48°
Feels Like: 54°
Huntsville/Madison
Clear
51° wxIcon
Hi: 61° Lo: 47°
Feels Like: 51°
Decatur
Clear
52° wxIcon
Hi: 64° Lo: 50°
Feels Like: 52°
Fort Payne
Clear
52° wxIcon
Hi: 67° Lo: 49°
Feels Like: 52°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Cases: 490220

Reported Deaths: 9744
CountyCasesDeaths
Jefferson704661342
Mobile35810721
Madison32203443
Tuscaloosa23961409
Montgomery22417489
Shelby21773211
Baldwin19635272
Lee14883147
Morgan13571248
Etowah13118312
Calhoun13090283
Marshall11212203
Houston10036257
Limestone9321133
Elmore9313179
Cullman8864177
St. Clair8771220
Lauderdale8570210
DeKalb8419173
Talladega7450162
Walker6492249
Jackson6466102
Autauga617285
Blount6072125
Colbert5978118
Coffee5229100
Dale4614106
Russell401431
Franklin397675
Covington3948105
Chilton383196
Escambia376670
Tallapoosa3559139
Clarke342749
Dallas3396140
Chambers3393103
Pike292771
Lawrence281284
Marion280793
Winston245665
Bibb243759
Marengo238554
Geneva238468
Pickens223554
Barbour209550
Hale208464
Fayette199356
Butler195165
Henry182341
Cherokee176338
Monroe165638
Randolph162740
Washington156233
Crenshaw143353
Clay143254
Macon140543
Cleburne136539
Lamar131632
Lowndes130148
Wilcox120825
Bullock116534
Conecuh106523
Perry105327
Sumter98231
Coosa86823
Greene86732
Choctaw54723
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Cases: 768946

Reported Deaths: 11266
CountyCasesDeaths
Shelby866001472
Davidson80790841
Knox45241571
Hamilton39979454
Rutherford37906375
Williamson25011202
Sumner21166312
Montgomery17207207
Out of TN1667091
Wilson16194209
Unassigned15662125
Sullivan14169273
Blount13929178
Bradley12734138
Washington12671231
Maury12141159
Sevier11889161
Putnam10537168
Madison10049226
Robertson8886118
Hamblen7958161
Anderson7893155
Greene7258144
Tipton6896101
Coffee6264114
Gibson6168140
Dickson6148103
Cumberland6072117
Carter5926152
McMinn586289
Roane581795
Bedford5756117
Loudon563164
Jefferson5580116
Lawrence554681
Warren529875
Monroe526389
Dyer5222101
Hawkins518793
Franklin470684
Fayette463771
Obion435794
Rhea411773
Lincoln410561
Cocke396192
Marshall388354
Cheatham385743
Campbell378158
Weakley377559
Giles371095
Henderson361173
Carroll346881
Hardeman337663
Macon335073
White333965
Hardin329762
Lauderdale309342
Henry298975
Marion290244
Wayne286430
Scott285042
Overton283757
Claiborne273666
McNairy265051
Haywood264359
Hickman262840
DeKalb261548
Smith253336
Grainger240746
Trousdale237922
Morgan228537
Fentress228344
Johnson215038
Chester200647
Bledsoe198210
Crockett196946
Unicoi179347
Cannon173628
Polk173621
Union168930
Lake167326
Grundy166330
Sequatchie153927
Decatur153137
Humphreys151321
Benton149939
Lewis145724
Meigs125421
Jackson124834
Stewart123124
Clay106230
Perry102527
Houston102330
Moore93616
Van Buren79120
Pickett74723
Hancock49312

Community Events