Tesla Stock Tumbles As They Embarrassingly Ask Suppliers For Refunds In Order To Make A Profit

Trent 7/24/2018 10:05 AM

AJC — Shares of Tesla tumbled Monday on reports that the company asked suppliers for refunds to help it turn a profit. A memo provided to The Wall Street Journal shows the electric car maker asked a supplier to return what it calls a meaningful amount of money on its payments since 2016. The memo said all suppliers were being asked to help the company become profitable. Tesla declined to comment on the specific memo, but confirmed that it is seeking price reductions from suppliers for projects, some of which date back that far. Tesla stock fell 3.5 percent to $302.61 Monday afternoon. It’s down from a peak of $385 in September, with many investors growing concerned about Tesla’s spending and its ability to meet its production goals. The request raised more questions about Tesla’s cash position. The 15-year-old company has reported only two quarterly profits in its history and has never made a profit for a full year. It is spending about $1 billion a quarter as it ramps up manufacturing of the Model 3 sedan, a lower-priced car that is key to Tesla’s plans of becoming a major mass-market automaker.

I gotta be honest, I have no idea what this means but I know it’s bad. I know it’s bad because Tesla’s stock dropped a whole bunch and people are making fun of Elon Musk for it. So as the world’s most famous Elon Musk beat reporter I had to weigh in with my thoughts. My thoughts are that it’s hilarious and the more bad things that happen to Elon Musk the better. Sounds like Tesla is in such dire straits that they have to ask their suppliers for a refund in order to make a profit? Again, I have no idea what that actually means but it’s not the actions of a thriving and successful company. That much I know for sure. Apple and Amazon aren’t doing this. Tesla might be outta business soon.

Lemme as you something, at what point do Tesla stockholders vote Musk out as CEO? I’m serious. That’s gotta be happening pretty damn soon. Over the past month he’s done every single thing wrong that a CEO could do wrong. So much so that his stock was downgraded by analysts and now Tesla is begging supplier for their money back. If Elon Musk weren’t perceived as the All Powerful Elon Musk and he was just a normal CEO his ass would’ve been voted out yesterday. We’re really on a roll here with bad things happening to him and he did it to himself all because he wanted to show the world he could make a cool child submarine. LOL.