- Eight of 22 top executives at auto suppliers surveyed by an industry association said they were worried about Tesla filing for bankruptcy, the Wall Street Journal reported.
- Additionally, 18 of the 22 respondents reportedly said that they now believe that Tesla is a financial risk to their companies.
- The majority of the respondents are current or former Tesla suppliers.
- “We are definitely not going bankrupt,” Musk said to the Journal.
A new survey reveals that a sizeable portion of auto industry suppliers are expressing concerns regarding a potential Tesla bankruptcy.
In a survey of members of the Original Equipment Suppliers Association’s council, obtained by the Wall Street Journal, eight out of 22 respondents – more than one in three – said they were worried about Tesla filing for bankruptcy.
Additionally, 18 of the 22 respondents reportedly said in the survey that they believe Tesla to now be a financial risk to their companies. Other suppliers separately told The Journal that Tesla does not always pay for services on time, something CEO Tesla CEO Elon Musk said occurred not because Tesla lacked funds, but “because we’re arguing whether the parts are right.”
Twenty-three of the 35 sales executives who are part of the prominent suppliers’ association that responded to the survey are current or former Tesla suppliers. (Not every respondent answered every question, the Journal reported.)
According to the WSJ report, Tesla estimates that increased deliveries will help generate several hundred millions more in cash by the end of September compared to three months earlier.
“We are definitely not going bankrupt,” Musk said to the Journal.
The survey was conducted between July 26 and August 8 – the beginning of a tumultuous period at Tesla, during which the company has been under public scrutiny.
On August 7, Musk tweeted funding was secured to take the company private. The tweet prompted questions regarding the ethics and legality of the announcement, with the Wall Street Journal reporting last week that Securities and Exchange Commission is investigating Musk’s motivations.
Last week, Musk said in a statement on Tesla’s website that he used the phrase “funding secured” to indicate that he believes there was “no question” that Saudi Arabia’s Public Investment Fund would provide funding to convert Tesla into a private company.
If you’re a Tesla supplier or someone else with a story to share about Elon Musk or Tesla, contact [email protected]
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