Tesla cuts number of stock colors to streamline production

Data sources GoodCarBadCar InsideEVs TroyTeslike and Kelly Blue Book

Anxious about what he called the "erratic behavior of CEO Elon Musk", Shah trimmed his price target to $300 from $400 - still 5% above Tesla's Monday closing price, but a huge cut.

The turbulent history of Tesla's Model 3 has been well-documented. 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. Obsidian Black and Metallic Silver have been taken "off menu", but they will still be available upon request.

However, other analysts are skeptical that Tesla can accelerate or even maintain this production pace long enough to be profitable.

Separately, automotive news website Electrek reported that Tesla is now launching its own in-house "Body Repair centres" to reduce repair time with the first nine locations.

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

A Tesla Spokesperson told Business Insider: "We occasionally adjust pricing and available options to best reflect the value of our products and to streamline our manufacturing operations".

"We are anxious that this behavior is tainting the Tesla brand, which in terms of value is most important", wrote Romit Shah in a Tuesday research note.

But if you're willing to pay more you can still get them, Musk said in a tweet. "We would definitely honor that obligation, and we would do so right now if it were possible", Musk said. "We are anxious that this behavior is tainting the Tesla brand, which in terms of value is most important", Shah says in the note, as carried by CNBC.

With the worst of the problems seemingly behind Tesla, it seems that they should be well on their way to finally fulfill their ambitious targets as long as they can stay out of trouble. That may frustrate some of those who were among the first to reserve a Model 3 in March 2016, but, according to Anand, it's important that Tesla prioritizes quality over delivery speed for all versions of the Model 3. The Model 3's base trim, which is expected to cost $35,000 before any options, is still not being produced. Musk also noted that Tesla would likely start producing the vehicle's smaller battery packs at the end of 2018.



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