Elon Musk retires 2 iconic Tesla colors to 'simplify' manufacturing

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

A Tesla spokesman said dropping the paint colors is not an indication of any production problems.

However, we've gotten little news on the company's fundamentals, and he notes that Tesla appears on track to meet its Model 3 production guidance.

The stock price has dropped almost 12% since the start of the year.

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 auto in the first place. That strategy paid off as Tesla built a huge lead in the electric auto race, although that position is under assault from intense competition by rival manufacturers such as Mercedes-Benz and Ford.

The note said a USA securities probe following Musk's brief flirtation with taking the electric vehicle maker private was unlikely to have an impact, although the frequent turnover of senior Tesla executives was more concerning. The least expensive Model 3 now available starts at $49,000, according to Tesla's website. 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.

Later on Friday, Tesla named a new president of automotive operations, promoting eight-year Tesla employee and former Daimler truck exec Jerome Guillen into the role overseeing all automotive operations and reporting to Musk.

Chief accounting officer Dave Morton resigned after just one month in the job because of discomfort with the attention on the company and pace of work during that time, Tesla said in a filing on Friday. Both said it would be highly unlikely for deliveries to begin in September and more likely for them to begin in 2019. Musk has promised that as it sells more Model 3s the company will turn a sustained net profit starting this quarter.

This is the Obsidian Black Tesla Model S.

Tesla on Tuesday said it manufactured 2,020 Model 3 vehicles in the last week of its first quarter - but missed its target of 2,500. He views the drop off in Tesla shares following controversy over Musk's unapproved tweets regarding a take-private acquisition as overblown.