Tesla asks suppliers to refund a portion of its payments to them. Tesla hopes the cash return to help it become profitable, according to the Wall Street Journal’s review of a memo that the electric car-maker sent one of its suppliers last week.
The refund request apparently seeks to enable Tesla to continue its operations and to bolster its long-term growth – something that both the company and its suppliers could potentially benefit from.
Although Tesla declined to comment on the specific memo, the company did indicate that it is seeking price discounts from suppliers on projects (including incomplete ones and those dating back to 2016) – as mentioned by the Wall Street Journal.