Tesla narrows paint options to simplify production

Tesla narrows paint options to simplify production

Tesla narrows paint options to simplify production

In a new blog post, Musk predicted that the electric-car maker would build on its second-quarter success and have "the most awesome quarter in our history, building and delivering more than twice as many cars as we did last quarter".

Tesla's Gigafactory, its lithium-ion battery-production facility, "creates a significant barrier for competition and manufacturing capability" that should benefit Tesla over the long term, Kallo and Katter said.

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

Baird stood by its price target of $411 for Tesla - representing a 44 percent increase from Monday's close.

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

Shah noted that Tesla could very well out-innovate the competition, and the company may eventually become much bigger than it is today, but it would be wise to remain on the sidelines until the electric auto maker has better leadership. In the past year and a half, "retreats in the stock below $300 per share have usually presented attractive near-term entry points, and we suspect the same may be the case following last week's turmoil".

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Musk's recent "erratic behavior", including the online appearance and comments to the press and analysts, prompted analysts at Nomura Instinet on Tuesday to lower their recommendation to neutral from buy until they see what happens with management.

Tesla is under heavy pressure to build as many cars as it can as efficiently as possible, and taking two paint options out of the equation certainly seems like a reasonable move. "I want to be clear that I believe strongly in Tesla, its mission, and its future prospects, and I have no disagreements with Tesla's leadership or its financial reporting", he added. As a result, Tesla lost its chief accounting officer, Dave Morton, because Musk wasn't interested in hearing about potential problems involving the take-private transaction. The stock fell 2.6 percent in pre-market trading on Tuesday.

This is the Obsidian Black Tesla Model S.

But Left told Chatterley he thinks that at the end of the day, Tesla is going to need more cash and it will probably have to sell more stock to raise funding.

Disclosure: Author owns shares of Ford.

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