Tesla Clarifies Request for Supplier Refunds

Tesla Inc. discounts a Wall Street Journal report last weekend that the company had asked many of its suppliers for retroactive price cuts in a bid to bolster its cash position.

Tesla describes the request as standard procedure in the procurement process, says it involves fewer than 10 suppliers and insists its appeal applies only to total capital expenditures for long-term projects that began two years ago.

The company adds that the requested changes would improve future cash flow but not impact its profitability in the current quarter. Tesla says the remaining discussions with its suppliers involve future pricing and design or process changes that would lower costs.