Tesla shares have taken a dive after a report that it is looking for refunds from a few suppliers.
The e-car manufacturer, which is headed by CEO Elon Musk, informed the suppliers the refunds were critical to its capacity to remain in business, as indicated by the Wall Street Journal.
The refund asked for applies to cash that Tesla has paid to a few suppliers since 2016, as indicated by the Journal.
Tesla said the appeal was a standard piece of acquisition transactions.
In an announcement released on Monday, the firm said it had asked less than 10 organizations to talk about costs identified with ventures that dated to 2016.
“The remainder of our discussions with suppliers are entirely focused on future parts price and design or process changes that will help us lower fundamental costs,” it said.
At first, Tesla shares dropped by over 5% on Monday morning as financial specialists reacted to the report, despite the fact that they recouped some ground later.