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

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Wall Street was expecting worse.

Tesla shares were up over 8 percent at $325.30 in after-market trading on Wednesday.

Tesla, which has posted profit only in two quarters since becoming a public company eight years ago, broke another record for quarterly net loss on Wednesday, smashing the previous record of $709.6 million set in the first quarter.

It expects to build a total of up to 55,000 Model 3s in the third quarter, which works out to an average weekly rate of 4,230, at a roughly 15 percent gross margin, rising to 20 percent in the fourth quarter.

I'd like to apologize for being impolite on the prior call. Tesla would use money generated from sales to fund big projects such as an estimated $2 billion new factory in China and another plant in Europe, he said.

The company said it produced 53,339 vehicles in the second quarter and delivered 18,449 Model 3s.

Tesla has been spending heavily as it strives to get the Model 3 - its latest vehicle - into the hands of customers.

There are reasons for it in that I had gotten no sleep, had been working 110 hour, 120 hour weeks, but nonetheless, there's still no excuse. He told analysts their questions were boring and refused to answer them, and he spent a significant amount of time fielding questions from a YouTuber.

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Moonves, who has run the current CBS since 2006, has steered the company aggressively into the streaming arena. Moonves has headed CBS Corporation since 2016.

Beyond its goal of making 6,000 vehicles a week, Tesla hopes to expand Model 3 production to 10,000 units in an unspecified timeframe. "It's good to be looking at the other end of this nightmare production ramp". Musk and CFO Deepak Ahuja admitted that even production of the vehicle was plagued with problems; Tesla launched a new production line in a massive tent, shuffled its worker base, and worked round the clock to hit the 5,000-Model 3s-a-week target.

The company has struggled to deliver the Model 3, which critics have celebrated as a "modern marvel", at a price cheap enough to win over new buyers who have been priced out of Tesla's luxury line.

The company's cash reserves have dropped to $2.2 billion, down from $3.3 billion at the end of a year ago.

"We believe we can be sustainably profitable from Q3 onwards". That's substantially less than the 2017 level of $3.4 billion.

The revenue side of the report was more positive than expected: $4 billion for the quarter, as opposed to Thomson Reuters' forecast of $3.92 billion.

Tesla also said it's working on a new version of its Autopilot semi-autonomous software that will have greater safety features.

Tesla also faces broader challenges that could make its cars more hard to sell.