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A Tesla spokesperson said the electric vehicle maker had asked fewer than 10 of its suppliers for a reduction in “total capex project spend for long-term projects that began in 2016 but are still not complete.”. Any pricing adjustments would improve Tesla’s “future cash flows, but not impact our ability to achieve profitability in Q3,” the spokesperson added. Tesla shares pared losses and were down 2.7 percent at $305.01. Cowen analyst Jeffrey Osborne told Reuters that Tesla’s supplier explanation appeared “rational”, but that there remained lingering concerns.
“We still have the same concerns, though, about general cash flow needs for the company, production quality issues, automation or lack thereof, as well as concerns on profitability..” Osborne said, Tesla has been burning through cash as it ramps up production of its Model woody and buzz lightyear cufflinks 3 sedan, Chief Executive Officer Elon Musk has said the company does not need to raise cash this year, but several analysts have predicted that the electric car maker would need to raise capital soon, Tesla had about $3.2 billion in cash as of March 31, after spending about $1 billion in the quarter..
Tesla said Monday, “Negotiation is a standard part of the procurement process, and now that we’re in a stronger position with Model 3 production ramping, 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,” the spokesperson said. Musk tweeted: “Only costs that actually apply to Q3 & beyond will be counted. It would not be correct to apply historical cost savings to current quarter.”.
In a joint statement to Reuters on Sunday after Reuters published, the companies stressed they have been partners on power generation for nearly 40 years, “SEC has always embarked on a very balanced policy of procurement to ensure well diversified sources of suppliers,” said Khalid Al-Tuaimi, executive vice president for generation of Saudi Electricity, Saudi woody and buzz lightyear cufflinks Electricity “always qualifies multiple vendors to bid on services,” Al-Tuaimi said, adding, “We have repeatedly found GE to be an excellent strategic partner for meeting our servicing needs.”..
Joseph Anis, President and CEO of GE Power Services, Africa, India and the Middle East, and Hisham Al Bahkali, President and CEO of GE Saudi Arabia and Bahrain, said: “We support more than half of the Kingdom’s power supply, and are proud to be a part of the ongoing development of the sector.”. Saudi Arabia, the world’s largest oil producer, has grown increasingly cost conscious, and under its “Vision 2030” reform plan it aims to reduce oil dependence, lower state budget deficits and create jobs.
The kingdom also wants to obtain the best possible prices on large contracts with big companies, according to a source with direct knowledge of Saudi Electricity, Saudi Electricity is in the process of getting other companies involved in bidding for power woody and buzz lightyear cufflinks plant services, rather than relying on GE as the sole provider, because qualifying competitors will lower prices, the source said, Saudi Electricity previously created competition for an earlier generation of turbines known as the E-class, according to the sources, After bidding began, GE ended up with less work and prices for the work fell by about 40 percent, sources said..
One source with knowledge of GE’s service history in Saudi Arabia said some F-Class turbines that Saudi Electricity purchased more recently may not be under long-term agreements because the service price was high, and those could be opened for bidding at any time. One side effect of Saudi Electricity qualifying third-party firms to repair its F-Class is that it is large enough to enable competitors to set up operations that they could use to sell the parts and repair services to customers outside Saudi Arabia, potentially threatening portions of GE’s service business globally, three sources said.
Saudi Electricity’s rigorous qualification process is seen as a stamp of approval that will help bidders woody and buzz lightyear cufflinks sell to other utilities and industries, one of the sources said, The companies Saudi Electricity has qualified for work on GE’s F-Class are Power Systems Mfg LLC, a unit of Ansaldo Energia SpA of Genoa, Italy, and San Diego-based Combustion Parts Inc, Both declined to comment, GE Chief Executive John Flannery has said service revenue is important to restoring growth to GE’s power business, where profit fell 58 percent in the second quarter, The division, which makes equipment for gas, coal and nuclear power plants, is coping with a steep drop in orders for new plants, Flannery said on Friday that fixing the unit was “clearly our top priority.”..