Monitoring Desk
ISLAMABAD/SAN FRANCISCO: Tesla Inc suppliers were under tremendous pressure from Chief Executive Elon Musk and his team, who are pressing them to cut their prices further as the electric car leader substantially slashed car prices in a slowing economy, an industry official who works with the automaker, said.
Tesla chief’s stance
The suppliers saw as ominous the earlier comments by Tesla Chief Financial Officer Zach Kirkhorn, who said that the carmaker was “attacking every other place of cost,” including the supply chain.
During Tesla’s earnings conference call the previous week, Elon said that an imminent recession could lead to “meaningful decreases” in almost its input costs.
“It is never good for suppliers when cutting car prices because that pressure rolls downhill,” said Dan Sharkey, the attorney representing suppliers to Tesla and other market automakers. “I never like it because I know they will eventually try to get it out of one of us.”
Most Tesla suppliers must include battery makers Panasonic, LG Energy Solution and CATL, and Italian casting machine maker IDRA Group; avoid discussing the carmaker publicly due to confidentiality agreements.
