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(Reuters) – Tesla Inc (TSLA.OElon Musk, chairman and CEO of the company, tweeted Tuesday as the company stepped up its efforts to speed up production.
FILE PHOTO: A row of new Tesla Model 3 electric vehicles is seen on a parking lot in Richmond, California, United States, June 22, 2018. REUTERS / Stephen Lam / File Photo
Tesla currently offers seven colors for its vehicles, including the S variant, the mid-size X model and the most affordable sedan. The company is trying to solve production problems after struggling to produce several Model 3 sedans.
"The two colors of Tesla out of 7 disappear Wednesday to simplify the manufacture. Obsidian Black & Silver Metallic will still be available as a special request, but at a higher price, "wrote Musk in a tweet.
The color options still available are solid black, metallic silver, deep blue metallic, pearl white and multi-layered red.
"We occasionally adjust prices and available options to better reflect the value of our products and streamline our manufacturing operations," said a Tesla spokesperson about the plan to remove some color options.
But some analysts have painted a dark picture of the movement.
"The abandonment of paint options will not be the last action to simplify automobile production. Tesla has no experience in mass production. They still need a lot of production know-how, "said Frank Schwope, analyst at NORD / LB.
The latest tweet follows a chaotic week for the automaker after Musk was filmed smoking marijuana and wielding a sword in a live show, and a tumultuous August month during which he was offers
The billionaire's behavior has raised concerns about his leadership and several Wall Street analysts have asked the company to name a strong No. 2 to support Tesla's operations and stay with investors.
On Tuesday, the long-time bull broker, Nomura Instinet, downgraded the "neutral" share of "buy" and reduced his price target from $ 100 to $ 300, citing Musk's "erratic behavior."
"We are concerned that this behavior will tarnish the Tesla brand, which in terms of value is the most important," analyst Romit Shah said.
Tesla is no longer "investable," Shah said.
Shares of the company declined 3.5% to $ 275.56 on Tuesday. They fell 29% from their August 7 high of $ 387.46, when Musk tweeted that he was deprived of the company.
The stock closed up 8.5% Monday, after two brokerages said the company could reach its production targets for the second half.
Report by Vibhuti Sharma and Munsif Vengattil, additional report by Mekhla Raina in Bangalore; Edited by Bernard Orr and Sweta Singh
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