Tesla curbs paint choices to simplify production - Roadshow


Increasing production of the Model 3 has been a top priority of Musk and Tesla for some time now, leading Musk to focus his attention "a lot" on it. Once Tesla is manufacturing the full range of the Model 3's variants, it would not be too surprising if the vehicle ends up dethroning best-selling passenger cars like the Toyota Camry in the United States.

Any color beyond Solid Black already come at an additional cost, but starting Wednesday the metallic black and silver options will be moved to a "special order" status. In fact, as other auto manufacturers such as Mercedes and BMW put their own focus on electric cars, mass production of the Model 3 is essential for Tesla's long-term survival.

A Tesla spokesperson further told the news outlet that this dropping of options happened occasionally and it could also include price adjustments.

"To ditch paint options won't be the last action to simplify the vehicle production".

Tesla did not immediately comment Tuesday on the Nomura note.

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.

"We are anxious that this behavior is tainting the Tesla brand, which in terms of value is most important", analyst Romit Shah said.

Alliance Bernstein analyst Toni Sacconaghi, Jr said much of the pressure on Tesla shares over the last month has been due to the sense Musk is "running wild and can't be contained" following a patch of erratic behavior, including a podcast appearance Thursday night in which he smoked marijuana.

Shares of the electric carmaker closed trading at $263.24, down 6.3 percent for the day, with investors on edge after a tumultuous August during which Musk proposed and then abruptly pulled the plug on a go-private deal.

With the worst of the problems seemingly behind Tesla, it seems that they should be well on their way to finally fulfill their ambitious targets as long as they can stay out of trouble.

And in case you missed it: during his marijuana episode on TV, Musk said he would soon announce a new product that can make anyone superhuman.

Tesla's turbulent stock price - and even more volatile CEO - steal the headlines.