Tesla cuts number of stock colours to streamline production


On Tuesday, longtime bullish brokerage Nomura Instinet downgraded the stock to "neutral" from "buy" and slashed its price target by $100 to $300, citing Musk's "erratic behavior".

Elon Musk might be one of the most colorful CEOs around.

Anxious about the "erratic behavior of CEO Elon Musk", Shah trimmed its price target to $300 from $400 - which is 5% above its Monday closing price, but still a huge cut. "During the second quarter, the switch seemingly flipped", analyst Romit Shah wrote. "This is best expressed in the number of tweets per day, which increased to 15 per day since May from four per day during the prior 18 months", Shah wrote.

Tesla is adopting a tried-and-true approach to speeding up production: fewer colors.

This is the Obsidian Black Tesla Model S. The note helped send shares up 8.5% on Monday. The bonds traded for just 84 cents on the dollar, down from 98 cents a year ago. 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.

Tesla is dropping two of the seven standard colors it had offered to customers as it tries to streamline production.

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This morning, however, it seems the Tesla stock has rebounded and is trading around what it was before the smoking news was released. Needham analyst Rajvindra Gill struck a extra cautious tone on Tesla, highlighting longer-time interval hurdles for the firm.

CEO of Tesla has previously noted how the paint shop at the Fremont factory has become a bottleneck for their ambitions production plans.

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

Where we're headed: With little in the way of updates about fundamentals, the Tesla bull-bear debate continues. During the three months that ended in June, Tesla produced 53,339 vehicles and delivered 40,740.

That move, described in a company blog with several other promotions as a result of board and management discussions, gives Musk a seasoned auto industry veteran to lean on at a time when some investors have called for a new chief operating officer. That strategy paid off as Tesla built a huge lead in the electric auto race, although that position is under assault from intense competition by rival manufacturers such as Mercedes-Benz and Ford.

The Tesla logo is seen at the entrance to Tesla Motors' new showroom in Manhattan's Meatpacking District in New York City, US, December 14, 2017.