Tesla expects to hit 6,000/week Model 3 production rate

Tesla expects to hit 6,000/week Model 3 production rate

Yet the biggest surprise during Wednesday's earnings call was Elon Musk's extending an olive branch to the same analysts the Tesla CEO slammed a quarter ago for asking "boring, bonehead" questions.

Tesla has released its second-quarter earnings for 2018, revealing a US$717.5 million ($969 million) loss, but there's a bit to suggest things are looking up in Silicon Valley.

Tesla shares were up 5 percent at $316.45 in after-market trading on Wednesday. After losing nearly 20 percent of its value after the previous earnings call, Tesla stock bounced about 5 percent in after hours trading immediately after the latest earnings report was released.

Tesla achieved its goal of producing 5,000 Model 3s per week in late June and now has plans to increase the number to 6,000 by the end of August, ultimately hitting a larger target of 10,000 cars per week by the beginning of next year.

The company also said that Model 3 gross profit margins turned slightly positive during the quarter as it worked out expensive kinks in its manufacturing system. However, the company did still lose money on the whole, working out to an adjusted loss of $3.06 per share, which is a bit worse than Thomson Reuters had estimated. But it ended up with $2.2 billion in cash at the end of June - way more than most had feared. Tesla says it built 53,339 cars in the second quarter, of which 18,449 were Model 3s.

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"TSLA is accommodating Model 3 customers who are willing to pay for premium features - making the auto more of a luxury item with a smaller addressable market than the mass market vehicle TSLA had promised". "I'd like to apologize for you know, being impolite on the prior call", he told Toni Sacconaghi of Bernstein, allowing him to ask the first question. Investors on Wall Street, meanwhile, were anticipating revenue to fall somewhere in the $3.791 billion range and a loss of $2.90 per share.

It reached its goal of making 5,000 Model 3 sedans a week "multiple" times in July, and aimed to produce 50,000 to 55,000 in the third quarter.

After quietly upgrading its semi-autonomous driving suite, Autopilot, almost a year ago, Tesla has been working hard on its next-generation hardware.

There are usually plenty of reasons for Tesla owners to look forward to software updates, but those who are also retro gaming fans have even more reason to look forward to the next one.

Tesla management has previously predicted that it would turn a profit sometime in the third quarter.

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