Tesla cuts number of stock colors to streamline production

Elon Musk might be hearing from the Air Force about a certain podcast appearance

Elon Musk might be hearing from the Air Force about a certain podcast

In a Tweet by CEO Elon Musk, it was announced that Tesla would be further limiting the paint choices available on its website when ordering a Model 3, and in addition, quietly raised the price on its dual-motor cars.

The catalyst for Tesla's growth is the Model 3.

Bernstein's Toni Sacconaghi, for his part, said that Tesla's below $300 share price was an "attractive near-term entry" point, but the analyst remains neutral on Tesla's longer-term performance until investors see if Tesla can pull off Model 3 quality, quantity, and profit margins. So far, though, the Model 3 has been performing well, being dubbed by auto sales tracking website GoodCarBadCar as the 5th best-selling passenger vehicle in the United States last August.

A Reuters report said Tesla now offered seven shades. The waiting list for a Model 3 is more than 400,000 strong, and some people have been waiting since March 2016.

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.

Tesla did not immediately respond for a comment to confirm the report.

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"We think the [Tesla] setup in sentiment looks relatively favorable for the next few weeks", wrote Bernstein analyst Toni Sacconaghi in a note to clients on Monday. Instead, you'll have to pay extra for them.

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

"We are anxious that this behavior is tainting the Tesla brand, which in terms of value is most important", analyst Romit Shah said.

While Nomura says Tesla is "no longer investable", analysts from Baird said earlier this week that traders should "buy even with drama".

Some customers have reported significant problems with their Model 3s and other Tesla vehicle shortly after receiving them, and Business Insider reported in August that a much higher percentage of Model 3s produced at the end of June required rework than a car at the average auto plant. With this statement in mind, it appears safe to infer that by April or Mar 2019, Tesla would be manufacturing the $35,000 base Model 3.

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