Published: Tue, September 11, 2018
Electronics | By Kelly Massey

Tesla cuts number of standard colour options in bid to streamline production

Tesla cuts number of standard colour options in bid to streamline production

Musk told employees on Friday afternoon that its third quarter, which comes to a close at the end of September, will be "the most incredible quarter in our history", featuring double the vehicle production and deliveries Tesla achieved in Q2.

Tesla was already under pressure before the note.

Left said it would have seemed like "death to the company" a few months ago to think Tesla might need someone else to run it. The bonds traded for just 84 cents on the dollar, down from 98 cents a year ago.

On Tuesday morning, Tesla CEO Elon Musk took to Twitter to let the world know that Tesla is slim-lining paint options for its electric vehicle. In a note published on Monday, Bernstein analyst Toni Sacconaghi stated that TSLA shares would likely bounce back up after the company's recent drops. The incident revived questions about whether Musk is the right person to lead Tesla, following his backtracking on taking the company private and claiming that a British diver who assisted in the rescue of a youth soccer team from a flooded cave in Thailand is a child molester. "We now see the near-term risk-reward for Tesla as relatively skewed to the upside, given the potential for the stock to revert towards the middle of its $270 to $370 range". However, Tesla's shares have fallen 18.6 per cent since the start of the third quarter, and shares are still way off the now-abandoned target of US$420 per share.

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.

"However, it is unclear to us that any of these are deal breakers for the stock".

Samsung plans higher specs for cheaper smartphones to rival Chinese brands
This is a big clue, since it indicates that the foldable device will be phone-sized when folded and tablet-sized when unfolded. At least "eventually" has just been upgraded to "some time this year", according to a new report from CNBC in the States.

Tesla will report its quarterly vehicle deliveries early next month.

Kallo said improving margins and increasing Model 3 production, more information about additional factories, possible introduction of future products, and "ramp of the gigafactory and additional Tesla Energy project announcements" should propel Tesla's stock.

Tesla's board has been on the lookout for senior talent but not actively searching for a chief operating officer, a person familiar with the board's thinking told Bloomberg News in August. The company is trying to iron out production bumps after struggling to produce Model 3 sedans and failing to meet several production deadlines.

"That's laughable", the employee said of Musk's prediction.

As of writing, Tesla shares are trading down 3.02% at $276.89 per share.

Disclosure: Author owns shares of Ford.

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