Tesla cuts number of stock colors to streamline production

Angelica Greene
September 11, 2018

Elon Musk, CEO, Tesla, recently promoted a bunch of executives after a series of resignations in the company.

Tesla is dropping two of the seven standard colors it had offered to customers as it tries to streamline production. Tesla is down more than 25 percent over the past month and has dropped 15.5 percent this year.

Elon Musk said he is retiring two of seven Tesla color options from his electric auto range on Wednesday - Obsidian Black Metallic and Metallic Silver - to help speed up production times.

A row of new Tesla Model 3 electric vehicles is seen at a parking lot in Richmond, Calif.

This comes after there have been questions about drug abuse after Musk's odd behaviour of late.

Other analysts are skeptical that Tesla can accelerate or even maintain this production pace long enough to be profitable. The bonds traded for just 84 cents on the dollar, down from 98 cents a year ago. So, Tesla stock is receiving contradictory opinions, to say the least.

The latest tweet follows a chaotic week for the carmaker after Musk was filmed smoking marijuana and wielding a sword on a live show, and a tumultuous August during which he proposed and then abruptly pulled the plug on a go-private deal for the company.

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Shares of Tesla fell about 4 percent to $275.20 Tuesday after Nomura analyst Romit Shah downgraded the company from "Buy" to "Neutral" on worries about Musk's erratic behavior.

Tesla stock (NASDAQ:TSLA) is showing its trademark volatility today, amidst a longtime bull's more cautious stance and a surprisingly optimistic outlook from a longtime critic.

On 1 August, Mr. Musk told analysts that Tesla plans to pay off its debt instead of refinancing it.

Though the company has faced production issues, concerns about financial health, a reported investigation from the SEC, and questions about the decision-making of Musk.

"We think the [Tesla] setup in sentiment looks relatively favorable for the next few weeks", wrote Bernstein analyst Toni Sacconaghi in a note to clients on Monday. Both said it would be highly unlikely for deliveries to begin in September and more likely for them to begin in 2019.

"We could raise money, but I think we don't need to, and I think it's better to just not", Musk said. Analysts at Baird, meanwhile, reiterated their connected of a take care of ranking on the stock and named it a "fresh use", announcing "solid fundamentals might perchance perchance perchance simply composed force shares elevated", with merchants underestimating ends in the 2d 1/2 of the yr.

Other reports by GizPress

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