Musk says Tesla to drop some color options for cars to simplify production

[September 11, 2018]   (Reuters) - Tesla Inc will eliminate some color options for its electric cars to streamline production, Chief Executive Officer Elon Musk tweeted on Tuesday, as the company intensifies its efforts to ramp up production.

Tesla currently offers seven colors for its vehicles that include top variant Model S, mid level Model X and its most affordable sedan Model 3. The company is trying to iron out production bumps after struggling to produce Model 3 sedans and failing to meet several production deadlines.

"Moving 2 of 7 Tesla colors off menu on Wednesday to simplify manufacturing. Obsidian Black & Metallic Silver will still be available as special request, but at higher price," Musk wrote in a tweet https://twitter.com/elonmusk
/status/1039390759907020801.

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

"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.

"The adjustments made today are the latest example of that. Model 3 Dual-Motor All-Wheel Drive is now a $6,000 option, and beginning September 13th we will be removing two paint options."

Tesla Motors CEO Elon Musk speaks during the National Governors Association Summer Meeting in Providence, Rhode Island, U.S., July 15, 2017. REUTERS/Brian Snyder/File Photo

Shares of the company, which closed up 8.5 percent at $285.50 on Monday after two brokerages said it could meet its production targets for the second half of the year, fell nearly 2 percent before the bell on Tuesday.

"To ditch paint options won't be the last action to simplify the car production. Tesla has no experience with mass production. They still need a lot production know-how," said Frank Schwope, an analyst with NORD/LB.

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

Tesla did not immediately respond for a comment to confirm the report.

(Reporting by Vibhuti Sharma, additional reporting by Mekhla Raina in Bengaluru; Editing by Bernard Orr)
 

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