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Tesla’s Call for Suppliers to Refund Cash ‘Reeks of Desperation’

  • Carmaker in unusual move seeks rebates on capex dating to 2016
  • Memo renews cash-flow worry with $1 billion in debt coming due
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Tesla Is Heading for Profitability Says Consumer Edge's Albertine
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When a company asks suppliers to retroactively give money back, it’s a sign that something has gone wrong.

That’s what analysts worry about with Tesla Inc., which has asked suppliers to return a portion of payments for parts they’ve delivered going back to 2016. In the memo to suppliers last week, Tesla asked for a meaningful amount of money to help it become profitable. The electric-car maker made the request to fewer than 10 suppliers, related to capital expenditures for long-term projects that started as far back as 2016 and aren’t complete, a spokesman said in a statement.