Musk elevates Tesla's little-known fixer to steer past drama

Data sources GoodCarBadCar InsideEVs TroyTeslike and Kelly Blue Book

One of Tesla's (TSLA) biggest advocates is giving up on his positive view of the carmaker's stock because of CEO Elon Musk's controversial behavior.

"We occasionally adjust pricing and available options to best reflect the value of our products and to streamline our manufacturing operations", a Tesla spokesperson said of the plan to drop some color options.

Tesla said cash from Model 3 sales will pay the bills and drive profits. However, Tesla's shares have fallen 18.6 per cent since the start of the third quarter, and shares are still way off the now-abandoned target of US$420 per share. Tesla has no experience with mass production.

In June, the company met a long-delayed goal of making 5,000 Model 3s in one week, but in addition to sustaining that rate of production, it has a new hurdle to clear: delivering the $35,000 base-priced version of the Model 3 that prompted Tesla to make the vehicle in the first place.

In a recent note on Tuesday, Nomura Instinet analyst Romit Shah downgraded Tesla from "Buy" to "Neutral" in a note to clients titled No Longer Investable.

Hurricane Florence reaches Category 2 strength as it targets the Carolinas
Hurricane Florence strengthened into a Category 4 storm at noon Monday as it continues barreling west toward the USA coast. The storm's maximum sustained winds are 65 miles per hour (100 kph) and it is moving west at 14 miles per hour (22 kph).

Minaj wants to donate $25,000 to Geoffrey Owens
Perry reached out to Owens via Twitter after hearing Owens took a job at the grocery-store chain to make ends meet. "I didn't feel any impulse to lash out, but I was devastated".

Airstrikes hit Syria's Idlib province, the last remaining rebel stronghold
The problem is if they try to flee to Turkey they will find a closed border and risk being shot if they try to cross illegally. They seized the territories, with the backing of the US -led coalition, after driving out Islamic State militants.

Elon Musk said he is retiring two of seven Tesla color options from his electric vehicle range on Wednesday - Obsidian Black Metallic and Metallic Silver - to help speed up production times. A Tesla spokesperson has since confirmed two color options are disappearing, but not until September 13. Musk tweeted on August 7 that he was considering taking Tesla private at $US420 per share and had secured the funding, but later reversed course. He said in the email that Tesla will build and deliver over double the amount of cars it did in the second quarter, when it built 53,339 and delivered 40,740.

Alliance Bernstein analyst Toni Sacconaghi, Jr said much of the pressure on Tesla shares over the last month has been due to the sense Musk is "running wild and can't be contained" following a patch of erratic behavior, including a podcast appearance Thursday night in which he smoked marijuana.

"With the launch of the Model 3, we saw that consumers were willing to forego compelling alternatives despite extended wait times and a premium price point". So, Tesla stock is receiving contradictory opinions, to say the least. Tesla stock is up 5.4% in Monday morning trading following Musk's latest comments and after a Baird analyst reiterated his bullish stance.

Disclosure: Author owns shares of Ford.

Related news:

Hot News

isis-killer-beheading-video-story-top Canada optimistic NAFTA deal can be struck this month
Sep 12, 2018 - 00:54
Canada's high dairy tariffs have been a target for Trump in the North American Free Trade Agreement , or NAFTA, renegotiations. Despite pressure from Washington to sign onto a deal similar to the one agreed with Mexico, Ottawa has resisted.

isis-killer-beheading-video-story-top Mac Miller's mom posted a touching tribute to her son on Instagram
Sep 12, 2018 - 00:51
Now TMZ reports that as a result of his death , the Los Angeles City Attorney has been forced to drop a DUI case against him.

isis-killer-beheading-video-story-top Djokovic wins US Open
Sep 12, 2018 - 00:26
The Argentine put his admiration aside Sunday and made it hard for Djokovic to gain an edge, despite the score of the first set. Open title. "I learned a lot about myself, learned to be patient, which was never really a stronger side of me", Djokovic said.

isis-killer-beheading-video-story-top Delpo-Djokovic clash in US Open 2018 finals
Sep 11, 2018 - 02:15
After needing two four-setters in the opening two rounds, Djokovic has glided into the final, his 23rd at the Slams. Everyone who follows tennis is familiar with the dramatic story of del Potro's career. "It means a lot to me".

isis-killer-beheading-video-story-top Interim CBS Chief Omits Les Moonves Sexual Misconduct Allegations in Company Email
Sep 11, 2018 - 02:14
Earlier this year, he uncovered allegations of physical assault that forced NY state prosecutor Eric Schneiderman to resign. The organizations have been "designated by Mr Moonves in consultation with the company".

isis-killer-beheading-video-story-top Elon Musk muses about life over whiskey and weed
Sep 10, 2018 - 02:50
While Musk was in California where recreational use of marijuana is legal , his antics certainly did not sit well with investors. Not long after, it was also reported the company's human resources chief Gaby Toledano won't be returning from leave.

isis-killer-beheading-video-story-top Schauffele grabs lead at Aronimink
Sep 10, 2018 - 02:20
Keegan Bradley and Hideki Matsuyama shot 6-under 64s and Rickie Fowler, playing alongside Woods, carded another 5-under 65. Woods also had a disappointing second day and slipped five shots off the lead to tied 12th after a level-par 70.

isis-killer-beheading-video-story-top Spain outperform England in Nations League fixture
Sep 10, 2018 - 02:19
Not just losing but being out-played, at times, despite the slender scoreline and the dispute over whether Danny Welbeck's injury-time strike should have stood.

isis-killer-beheading-video-story-top No long-range missiles, N.Korea military parade features floats and flowers
Sep 10, 2018 - 02:11
North Korean leader Kim Jong-un, right, and Li Zhanshu, the third-highest ranking official in the ruling Communist Party of China. But the only ones on show were the blue Kumsong-3, an anti-ship cruise missile, and the Pongae-5 surface-to-air weapon.

isis-killer-beheading-video-story-top Donald Trump tells supporters ‘it’s your fault’ if he gets impeached
Sep 10, 2018 - 01:50
Trump said numerous Senate Democrats whom Tester had helped elect "are attacking Judge Kavanaugh and looking like fools". The first people in line can often grab front row seats facing the podium.

isis-killer-beheading-video-story-top Off-duty Dallas Police Officer fatally shoots unarmed Black man in his apartment
Sep 10, 2018 - 01:30
Details on exactly what happened remain under investigation by the Texas Rangers and the Dallas County district attorney's office. But Dallas Mayor Mike Rawlings said Saturday that he supported Chief Hall and her decision to bring in state investigators.

isis-killer-beheading-video-story-top STORM ALERT | Areas of heavy rain develop through Saturday
Sep 10, 2018 - 01:12
The remains of tropical depression Gordon will reach the Golden Horseshoe late Sunday, it says, with rain lasting through Monday. We have avoided significant rainfall for most of the area so far this month but that changes quickly starting this evening.

isis-killer-beheading-video-story-top ESPN captures epic shot of Rafael Nadal after marathon match
Sep 10, 2018 - 01:01
If ever there was a reminder that fans should appreciate the game's largest figures while they can, Tuesday night at the U.S. Law and Whitaker say it feels like there's an irresistible force behind del Potro that's pushing him to the title.

isis-killer-beheading-video-story-top Tom Brady: "I don't want to bring on any drama this year"
Sep 09, 2018 - 03:22
The Pats are the only National Football League team with zero receivers that have topped 700 yards in a single season. A new season upon us, the Texans' defense is healthy again, a fact that could be hazardous to opponents' health.

isis-killer-beheading-video-story-top U.S. Open 2018: Djokovic, Cilic, Keys, Osaka onto semifinals
Sep 09, 2018 - 03:18
Cilic has made two grand slam finals since but Nishikori has never been back and will now take on either twice U.S. The 20-year-old Osaka then secured a final break to close out the match. "It's great to see", said Nishikori.