Tesla eliminates two colors options for its cars

Yolanda Curtis
September 11, 2018

Shah slashed his price target on Tesla to US$300 from US$400 citing the "erratic behavior of CEO Elon Musk".

The note said a USA securities probe following Musk's brief flirtation with taking the electric auto maker private was unlikely to have an impact, although the frequent turnover of senior Tesla executives was more concerning.

Tesla's turbulent stock price - and even more volatile CEO - steal the headlines. Tesla's CEO Elon Musk also announced a number of management promotions, as the electric vehicle maker enters the final weeks of an "amazing" third quarter, the company chairman said. Even if it was live on television, Elon Musk's marijuana episode at the weekend was just one of several weird decisions that have rattled investors in the USA electric carmaker.

Tesla says is rapidly ramping up M3 production, which could take financial pressure off the company.

Red lights are flashing on Wall Street about Tesla's ability to pay back a pile of debt. The bonds traded for just 84c on the dollar, down from 98c a year ago. If Tesla does build and deliver more than "twice" as many cars as it did last quarter, that means the company would hit something like 107,000 vehicles. He also detailed seven new management changes, which come after Tesla's chief accounting officer quit last week after just a month on the job.

Near 1915 GMT, Tesla shares were up 6.5 per cent to $280.22, recovering from Friday's selloff prompted by the news of two executive departures and criticism of Musk's pot-smoking podcast appearance.

Late on Thursday, Musk was filmed drinking whiskey, briefly smoking marijuana and wielding a Samurai sword during a two-and-a-half hour live Web show with comedian Joe Rogan that swiftly spread across social media. But Musk has courted controversy as of late. The stock fell 2.6 percent in pre-market trading on Tuesday.

Shares of Tesla(TSLA) are jumping 5% on Monday, after yet more commentary from CEO Elon Musk. His leaving reflects "the intensity of (Tesla's) work custom, and is no longer indicative of concerns with fundamentals or monetary reporting", the Baird analysts, led by Ben Kallo, acknowledged. He has also dampened speculation that Tesla will need to raise cash by selling more stock.

The former employee said Musk's prediction that production and deliveries will more than double was realistic and one current employee said Musk's optimism was reflected among the employee's colleagues. Musk indicated the same in May, when he said Tesla would "lose money and die" if it started delivering the base model.

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