Tesla cancels production of Plaid+, Musk tweets ‘Plaid is just so good’

Tesla Inc (NASDAQ: TSLA) withdrew from its previously announced plans of producing a ‘supercar’ variant of its flagship Model S that it called Plaid Plus, according to CEO Elon Musk’s tweet on Sunday.

Tesla has struggled in the stock market in recent weeks – a pullback that TradingAnalysis.com founder Todd Gordon sees as a good buying opportunity.

Model S Plaid Plus was likely to be the most expensive variant

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The Model S Plaid Plus was likely to be the most expensive variant and was to come with a larger battery promising a range of 520 miles, 1,100 horsepower, and a 0 to 60 mph in under two seconds. Musk’s tweet read:

“Plaid+ is cancelled. No need, as Plaid is just so good. 0 to 60 mph in under 2 secs. Quickest production car ever made of any kind. Has to be felt to be believed.”

In March, the world’s largest electric car manufacturer had lifted the price of Plaid Plus to $150,000. In comparison, the Model S Plaid costs roughly $119,900 and comes with a battery that promises 390 miles on a full charge. With a horsepower of 1,020, it hits 60 mph in two seconds.

The delivery ceremony for the Model S Plaid was scheduled for 3^rd June at Tesla’s Fremont factory. CEO Musk, however, postponed it to 10^th June last week, citing that the variant required “one more week of tweak”.

In separate news from the United States, Vulcan Materials said it will buy U.S. Concrete for $1.29 billion (£910 million).

CEO Musk had highlighted production challenges in April

In April, when Tesla reported its quarterly financial results, CEO Elon Musk had said:

“There are more challenges than expected in developing the Plaid Model S or the Palladium program, which is a new version of the Model S and X, which has a revised interior and new battery pack and new drive units and new internal electronics and has resembled a high-station level infotainment system. It took quite a bit of development to ensure that the battery of the new S and X is safe.”

Tesla shares opened at $591.77 on Monday and are currently exchanging hands at $587.54. In comparison, the stock had started the year at $729.77 per share. At the time of writing, the American electric vehicle and clean energy company has a market cap of $566 billion and a price to earnings ratio of 592.07.