Tesla to drop some color options for cars to simplify production

Tesla to drop some color options for cars to simplify production

Tesla to drop some color options for cars to simplify production

Model 3. Image source: Tesla.

Shares of the company, which closed up 8.5 per cent at $285.50 on Monday after two brokerages said it could meet its production targets for the second half of the year, fell almost 2 per cent before the bell on Tuesday. He reiterated a Market Perform rating and $325 price target on the shares, writing that the stock's recent woes largely stem from four main factors, : potential lawsuits about the go-private tweet heard round the world, Musk's erratic behavior, emerging competition, and executive departures and accounting issues.

Investors should still buy Tesla's stock in spite of all the "drama" surrounding the electric vehicle maker and its management, an analyst at Baird said after touring the company's factory. During the second quarter, the switch seemingly flipped ...

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.

Tesla's $1.8 billion junk bond maturing in August 2025 plunged as much as 4c on the dollar to below 82c, a record low, in Friday trading, pushing the yield above 8.8%.

The automaker will drop two of the seven colors for all three of its models in which they have been offered from its regular build menu, leaving obsidian black and metallic silver only as special-order options.

"However, it is unclear to us that any of these are deal breakers for the stock".

"We believe the continued focus on domestic deliveries is a positive read-through for demand; if Tesla were to shift focus to global deliveries instead of maximizing the federal tax credit in 2H:18 we think it could imply demand is soft". Analysts say Tesla may struggle to raise cash until the dark cloud of an SEC investigation is lifted. Tesla hasn't been able to get producing 5,000 cars this quarter.

One former and two current Tesla employees shared diverging opinions to Business Insider on whether the company will fulfill Musk's lofty vision for the quarter. Musk pushed back that timeline in June, saying Tesla would start making $35,000 Model 3s near the end of 2018 and aim for mass production in 2019.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

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