Liam Denning, Columnist

Tesla’s Cash-Back Request Sends a Worrisome Message

Asking suppliers to help with refunds is the latest sign it’s burning through cash.

July 23, 2018 at 5:39 PM UTC

Liam Denning is a Bloomberg Opinion columnist covering energy. A former banker, he edited the Wall Street Journal’s Heard on the Street column and wrote the Financial Times’s Lex column.

More cash, please.
Photographer: Justin Sullivan/Getty Images North America

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Elon Musk may not like it, but I have a feeling he’s going to face a few more boring questions on Aug. 1.

Alongside tedious things like Model 3 production rates and the economics of that tent, a new question has surfaced. Tesla has apparently asked some suppliers to return some of its prior payments in order to help the company in its quest for profitability, The Wall Street Journal reports, citing a company memo. This tweet by CEO Musk late Sunday appears to offer some corroboration: