Tesla Asks Suppliers for Cash Back to Help Turn a Profit

6 years ago
Anonymous $hM_jrxqbr-

https://finance.yahoo.com/news/tesla-asks-suppliers-cash-back-015000012.html

While Tesla said in the memo that all suppliers were being asked to help it become profitable, it is unclear how many were asked for a discount on contracted spending amounts retroactively. Some suppliers contacted about the request said they were unaware of such a demand.

Tesla declined to comment on the specific memo. But it confirmed it is seeking price reductions from suppliers for projects, some of which date back to 2016, and some of which haven’t been completed. The company called such requests a standard part of procurement negotiations to improve its competitive advantage, especially as it ramps up Model 3 production.