Shares in Tesla drop sharply after electric car maker reportedly begs suppliers for refunds to help it turn a profit
Shares in Tesla dropped sharply after the electric car maker reportedly begged suppliers for refunds to help it turn a profit.
Suppliers claim to have been sent letters asking them to repay substantial amounts.
Worry: Shares fell as much as 5 per cent amid growing concern over profitability and flamboyant billionaire owner Elon Musk (pictured)
Tesla is burning through £760m every three months as it battles to produce the first mass-market electric car. Shares fell as much as 5 per cent in New York after the report in the Wall Street Journal, amid growing concern over profitability and flamboyant billionaire owner Elon Musk.
The firm managed to hit its target of building 5,000 Model 3 cars a week at the start of this month – but only after building a giant plastic tent in the car park of its California factory to house an extra production line.
Meanwhile Musk said earlier this year that he was sleeping on the factory floor because he was so busy trying to ramp up production.
The 47-year-old has recently caused alarm with his Twitter rants. He apologised for one in which he called a British diver who rescued the 12 boys trapped in a Thai cave a ‘pedo’.