Date
16 November 2018
Tesla, which is struggling to meet production goals, has retired some color options for its electric vehicles.  Photo: Reuters
Tesla, which is struggling to meet production goals, has retired some color options for its electric vehicles. Photo: Reuters

Tesla to drop some color options to simplify production

Tesla will eliminate some color options for its electric cars as parts of efforts to streamline production, the firm’s embattled CEO, Elon Musk, announced on Tuesday.

“Moving 2 of 7 Tesla colors off menu 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.

The color options that will still be available are solid black, midnight silver metallic, deep blue metallic, pearl-white multi-coat, and red multi-coat, Reuters reports.

“We occasionally adjust pricing and available options to best reflect the value of our products and to streamline our manufacturing operations,” the report cited a Tesla spokesperson as saying.

Tesla currently offers seven colors for its vehicles that include top variant Model S, mid-level Model X and its most affordable sedan Model 3.

The California-based firm is trying to iron out production bumps after struggling to produce Model 3 sedans and failing to meet several production deadlines.

Musk’s latest tweet follows a chaotic week for the carmaker after the CEO was filmed smoking marijuana and wielding a sword on a live show, and a tumultuous August during which he proposed and then abruptly pulled the plug on a go-private deal for the carmaker.

The billionaire’s behavior has raised concerns about his leadership.

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, Reuters noted.

On Tuesday, brokerage Nomura Instinet downgraded the Tesla stock to “neutral” from “buy” and slashed the price target by US$100 to US$300, citing Musk’s “erratic behavior”.

Tesla shares have fallen about 30 percent from their Aug. 7 intraday high of US$387.46 when Musk tweeted about taking the company private.

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CG/RC

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