Tesla pulls 2 paint colors to 'simplify manufacturing'

Tesla stocks tumbled this week after CEO Elon Musk appeared to smoke pot in a podcast. In addition two top executives said Friday they were leaving the company

Tesla pulls 2 paint colors to 'simplify manufacturing'

Those targets sounded ambitious and, perhaps a better term, unrealistic at the time, because in 2015, Tesla was making only slightly over 25,000 cars a year (a majority were the Model S, Tesla's first model).

While the change sounds minor, Musk said the modified color palette will help to "simplify manufacturing".

As for the long-term, Bernstein is still questioning Tesla's ability to sustain its level of production for its first mass-market vehicle, the Model 3 sedan.

The two colors, Obsidian Black Metallic and Silver Metallic, will disappear from Tesla's site on Wednesday, confirms Musk.

The colour options that will still be available are solid black, midnight silver metallic, deep blue metallic, pearl-white multi-coat, and red multi-coat.

But some analysts painted a dour picture of the move. Simplifying paint and vehicle option choices is a common strategy among all automakers to speed production, limit build complexity, lower costs, maximize quality and minimize inventory. Clearly, as added by experts, Tesla is still a greenhorn when it comes to mass production. "They still need a lot production know-how", said Frank Schwope, an analyst with NORD/LB.

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It was also reported that Justin thanked some of the court officials for keeping their appearance in the courthouse quiet.

According to a CNN report, the CEO also announced a few leadership changes, including a promotion for Jerome Guillen, former VP of sales and services, who has been appointed as president of Tesla automotive and will report directly to Musk.

Nomura Instinet analyst Romit Shah downgraded Tesla this morning to neutral from buy in a note titled "No Longer Investable".

The announcement follows a chaotic week for Tesla in which Musk lost his chief accounting officer after less than a month on the job, then smoked marijuana during a late-night podcast hosted by a California comedian.

Tesla shares surged 11 percent Tuesday that said he is considering taking the company private at a $420 per share price.

In an email to employees, CEO Elon Musk said Toledano was on leave to "spend more time with her family and has made a decision to continue doing so for personal reasons". Musk indicated the same in May, when he said Tesla would "lose money and die" if it started delivering the base model.

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.

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