STREAMING NOW: Watch Now

Elon Musk tweets, Tesla's stock tumbles

Another tweet from Elon Musk, and Tesla stock is tumbling.Shares are down more than 3% after ...

Posted: Jul 23, 2018 6:18 PM
Updated: Jul 23, 2018 6:18 PM

Another tweet from Elon Musk, and Tesla stock is tumbling.

Shares are down more than 3% after The Wall Street Journal reported that Tesla is asking some suppliers for partial refunds, another sign of a cash crunch at the company.

Tesla burned through $700 million in cash last quarter, and its cash reserves dipped 20%. Analysts say Tesla needs to sell a lot more cars. Musk has pushed back on naysayers, arguing that the company will be profitable this quarter and next.

The Journal cited a memo from a manager to a supplier, saying that all suppliers are being asked to help Tesla become profitable.

Musk, Tesla's co-founder and CEO, confirmed on Twitter that Tesla is asking for money from its suppliers.

He wrote early Monday: "Only costs that actually apply to Q3 & beyond will be counted. It would not be correct to apply historical cost savings to current quarter."

Related: Tech analyst tells Elon Musk: Time to take a break from Twitter

A Tesla spokesman told CNNMoney that it asked "fewer than 10" suppliers for money back for long-term projects that began in 2016 and have not yet been completed, The spokesman said the cost savings will help Tesla increase its production volume, though he claimed Tesla would be profitable without the concessions.

"Now that we're in a stronger position with Model 3 production ramping [up], it is a good time to improve our competitive advantage in this area," a company spokesman said. "We're focused on reaching a more sustainable long term cost basis, not just finding one-time reductions for this quarter."

The Journal said Tesla confirmed that it is "seeking price reductions from suppliers for projects, some of which date back to 2016, and some of which haven't been completed."

Related: 24% of Tesla Model 3 orders have been canceled, analyst says

Tesla in late June finally hit an important production target for the Model 3, its most accessibly priced electric car.

Analysts are also concerned about erratic tweets from Musk. He has lashed out at journalists for critical coverage of Tesla, and earlier this month he tweeted an unfounded and disparaging claim about a cave diver who participated in the rescue of a Thai soccer team.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 116617

Reported Deaths: 3283
CountyConfirmedDeaths
Hinds8011179
DeSoto721079
Harrison539884
Jackson469387
Rankin401686
Madison384394
Lee364082
Forrest309478
Jones296184
Washington260399
Lafayette253143
Lauderdale2499135
Lamar229138
Oktibbeha203755
Bolivar202877
Neshoba1861111
Lowndes181262
Panola170640
Leflore169188
Sunflower164049
Warren156056
Monroe153073
Pontotoc149020
Marshall147330
Lincoln142959
Pike140456
Copiah138736
Scott126229
Coahoma125537
Yazoo122734
Grenada122639
Simpson122349
Union119725
Tate119339
Itawamba115926
Leake115842
Pearl River115060
Holmes114960
Adams109344
Prentiss108320
Wayne102722
Alcorn102112
George101419
Covington98529
Marion95443
Tippah93123
Newton86827
Chickasaw86226
Hancock85928
Tallahatchie84626
Winston84621
Tishomingo82241
Attala80526
Clarke76353
Clay70522
Jasper69217
Walthall64127
Calhoun62713
Noxubee60117
Smith59816
Yalobusha55614
Montgomery55423
Claiborne53916
Tunica53617
Lawrence53414
Perry51223
Carroll49712
Stone48614
Greene47918
Humphreys44916
Amite42713
Quitman4216
Jefferson Davis41711
Webster37813
Benton3608
Wilkinson33820
Kemper32715
Sharkey28715
Jefferson27710
Franklin2483
Choctaw2086
Issaquena1074
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 159439

Reported Deaths: 2699
CountyConfirmedDeaths
Jefferson23573377
Mobile16994316
Tuscaloosa10462140
Montgomery10352198
Madison942298
Shelby750465
Baldwin671269
Lee657165
Calhoun464761
Marshall442651
Etowah434151
Morgan422335
Houston419334
DeKalb349228
Elmore324653
St. Clair304042
Limestone293631
Walker283793
Talladega271437
Cullman255725
Lauderdale233842
Jackson219417
Autauga208231
Franklin206432
Colbert206032
Blount197225
Russell19603
Chilton190432
Dallas188127
Coffee180711
Dale178952
Covington175929
Escambia174931
Chambers136847
Clarke136617
Pike134514
Tallapoosa133987
Marion110331
Barbour10429
Marengo102622
Butler101241
Winston94013
Geneva9217
Lawrence86933
Pickens86918
Bibb85015
Randolph83516
Hale77730
Cherokee75614
Clay75312
Washington75112
Henry7236
Lowndes71628
Monroe65510
Bullock65017
Crenshaw60930
Perry5956
Fayette58913
Cleburne5739
Wilcox57012
Conecuh56513
Macon53920
Lamar5085
Sumter47421
Choctaw39312
Greene34616
Coosa2093
Out of AL00
Unassigned00
Tupelo
Overcast
66° wxIcon
Hi: 73° Lo: 63°
Feels Like: 66°
Columbus
Overcast
71° wxIcon
Hi: 75° Lo: 64°
Feels Like: 71°
Oxford
Overcast
59° wxIcon
Hi: 68° Lo: 56°
Feels Like: 59°
Starkville
Overcast
64° wxIcon
Hi: 72° Lo: 57°
Feels Like: 64°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather