Tesla cuts number of stock colors to streamline production

Isaac Cain
September 15, 2018

Tesla later on Friday said its accounting chief would leave after a one-month stint, the latest in a string of unusual behavior and executive departures that have stunned investors. Few weeks ago, Musk had planned and then cancelled a plan to take the firm private.

With Musk wanting to get this show on the road, he most likely realized there's just no time for frivolous things like sparkly paint.

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.

Tesla is dropping two of the seven colours it had offered to customers as it tries to streamline production. Clearly, as added by experts, Tesla is still a greenhorn when it comes to mass production.

The Model 3 was presented as Tesla's first mass-market vehicle, but so far, Tesla has only made premium versions of the Model 3 with long-range batteries.

Musk has security clearance because another of his companies, SpaceX, provides satellite launch services to the USA government.

More news: Jeff Bezos Now Has a £1.5 Billion Charity Fund

Tesla was already under pressure before the note.

"I don't want to be complacent about Tesla's success". That strategy paid off as Tesla built a huge lead in the electric vehicle race, although that position is under assault from intense competition by rival manufacturers such as Mercedes-Benz and Ford. "They still need a lot production know-how", said Frank Schwope, an analyst with NORD/LB.

According to some tech industry analysts, Tesla's move to ditch paint options will just be the first of the many measures that the company is willing to implement in order for it to achieve a more simplified production process. While the potential of the $35,000 Model 3 is vast, Tesla and even CEO Elon Musk have been quite conservative when releasing updates about the upcoming electric sedan.

Based on the company's current production pace, Tesla is set to make 275,000 cars by the end of this year, or 11 times its annual production volume in 2015.

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.

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