Hello and welcome to the Tuesday July 24th 2018 edition of Tesla Daily Unofficial

Tesla Podcast.

My name is Rob Maower.

Today we are talking about Tesla's response on supplier negotiations.

A new analyst rating, a couple new features, and some more Twitter drama.

Tesla stock on Monday closed down 3.31% to $303.20 this compared to the NASDAQ up 0.28%.

Following up on yesterday's topic of Tesla supplier negotiations, Tesla issued a statement saying, quote, negotiation is a standard. Tesla it is a good time to improve our competitive advantage in this area.

We're focused on reaching a more sustainable long-term cost basis,

not just finding one-time reductions for this quarter, and that's good for Tesla,

our shareholders and our suppliers who will also benefit from our increasing production volume and future growth opportunities.

We asked fewer than 10 suppliers for a reduction in total cap-ex project spend for long-term projects that began in 2016 but are still

not complete. And any changes with these suppliers would improve our future cash flows, but

not impact our ability to achieve profitability in Q3.

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 rather than prior

period adjustments of CAPX projects. This is the right thing to do."

End quote. So to me this does not look like a situation where Tesla was asking

for cash back from previous projects. In addition to that, the

fact that Tesla is asking fewer than 10 suppliers for reduction in CapX. Clearly that

shows that this is not something that Tesla needs to survive as a company, which was sort of what the Wall Street Journal alluded.

It also sounds like everything that Tesla is negotiating on is part of either an ongoing project

or a project that will be happening in the future.

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