Tesla cuts number of stock colors to streamline production


Tesla cuts number of stock colors to streamline production

Tesla has sent an email to vehicle reservation holders and other potential buyers outlining the plan for the removal of "Metallic Silver" and "Obsidian Black".

"Moving 2 of 7 Tesla colours off menu on Wednesday to simplify manufacturing".

In his official Twitter account, Musk said that they will be removing the colors obsidian black metallic and silver metallic for Tesla Model S, Model X and Model 3 cars.

Tesla now offers seven colours for its vehicles that include top variant Model S, mid level Model X and its most affordable sedan Model 3.

In addition to removing the two colors, Tesla also chose to raise prices on two other paint options, Pearl White Multi-Coat and Red Multi-Coat.

Even better, if Tesla manages to maintain production at its current rate, the company will reach an annual volume of three million by 2021. Clearly, as added by experts, Tesla is still a greenhorn when it comes to mass production. Simplifying paint and vehicle option choices is a common strategy among all automakers to speed production, limit build complexity, lower costs, maximize quality and minimize inventory. "They still need a lot production know-how", said Frank Schwope, an analyst with NORD/LB.

Tesla declined a request for comment on this story.

Shah expressed concerns over the rising frequency of CEO Elon Musk's tweeting as well as Musk's taunts of short sellers, his recent earnings call outburst, and his increasingly unpredictable behavior.

On Tuesday, longtime bullish brokerage Nomura Instinet downgraded the stock to "neutral" from "buy" and slashed its price target by US$100 to US$300, citing Musk's "erratic behavior". "We are anxious that this behavior is tainting the Tesla brand, which in terms of value is most important".

"Since I joined Tesla on August 6th, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations", said a statement from Morton released by the company in a filing with the Securities and Exchange Commission.

Shares of the company were down 3.5 percent at US$275.56 on Tuesday.

Near 1915 GMT, Tesla shares were up 6.5 per cent to $280.22, recovering from Friday's selloff prompted by the news of two executive departures and criticism of Musk's pot-smoking podcast appearance.