by Karl Denninger, Market Ticker:
Oh oh…
The Wall Street Journal reports that Tesla is now “asking for” (read: demanding) a post-delivery rebate on some of the funds spent with suppliers — for the last two years.
In other words they agreed to buy “X” for $Y, and now, after the fact, after they were invoiced and, presumably they paid said invoice and consumed said supplier’s stuff they are demanding some of the money they paid back.
The Journal does not imply or state, incidentally, that this is due to some sort of post-delivery quality problem (for which such a “request” would be reasonable.)
Nobody in their right mind would respond to such a “request” with anything other than laughter unless they had a sizable A/R amount outstanding with Tesla which was at risk of not being paid at all.
Draw your own conclusions — mine is that I may need some way out-of-the-money PUTs.
PS: This might explain Musk’s increasingly erratic behavior…..
PPS: Own a Tesla? How well will it operate (or will it operate at all) when it can’t talk to “momma” any more?
