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Tesla Sinks on Report That Suppliers Were Asked to Return Cash

  • Refund request essential to continued operation, Tesla says
  • Shares, bonds fall after WSJ report citing a company memo
James Albertine, senior analyst for Consumer Edge Research discusses Tesla’s path to profitability. Markets: The Open." (Source: Bloomberg)
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Tesla Inc. asked some suppliers to return a portion of its payments to them in an attempt by the electric-car maker to turn a profit, the Wall Street Journal reported, citing a memo sent to a supplier last week.

The company’s shares dropped as much as 5.9 percent on Monday following the report. The bonds also declined.