More To Blame Than Mary Jane As Musk Inhales Tesla's Woes

Adjust Comment Print

While the change sounds minor, Musk said the modified color palette will help to "simplify manufacturing".

Tesla is ditching two of seven colours offered to buyers on Wednesday to simplify manufacturing. "Obsidian Black & Metallic Silver will still be available as special request, but at higher price", Musk wrote in a tweet.

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

In May, Tesla CEO Elon Musk suggested the company would start delivering the $35,000 model three to six months after reaching its 5,000-per-week production goal, which meant deliveries would start sometime between the end of September and the end of December.

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

However, other analysts are skeptical that Tesla can accelerate or even maintain this production pace long enough to be profitable. "They still need a lot production know-how", said Frank Schwope, an analyst with NORD/LB.

Tesla did not immediately respond for a comment to confirm the report.

Arsenal Boss Keen To Scupper Barcelona's Interest In Gunners Star
Arsenal will look to make it three wins in a row when we take on Newcastle United at St James' Park on Saturday afternoon. We will work, we will help him, give him the possibility on the pitch to be together, to find his qualities for us.

The billionaire's behavior has raised concerns about his leadership and several Wall Street analysts have called for the company to appoint a strong No. 2 to prop up Tesla's operations and standing with investors.

Shares of Tesla closed down just over 2 per cent at $279.44 Tuesday after Nomura analyst Romit Shah downgraded the company from "Buy" to "Neutral" on worries about Musk's erratic behaviour.

Quality is more important than speedIn the near term, Tesla is going to focus on the more profitable models, Acevedo said.

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

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.

The announcement follows a chaotic week for Tesla in which Musk lost his chief accounting officer after less than a month on the job, then smoked marijuana during a late-night podcast hosted by a California comedian. "As long as he doesn't self-destruct, we think this is the reality (show) of being a Tesla investor".

But the carmaker's stock dropped about 7 percent in total over the next two trading sessions on skepticism over the deal's financing and the news that the U.S. Securities and Exchange Commission to Tesla.