Tesla said on Wednesday it expects to increase Model 3 production to 6,000 per week by late August, buoying expectations that the Elon Musk-led electric vehicle maker will meet its goal of profitability and positive cash flow in the next two quarters.
In another boost, the automaker said it has trimmed its capital spending by manufacturing the Model 3 on existing assembly lines, rather than building new lines. Shares of Tesla have risen 11% to $$332.99 in after-hours trading.
Tesla may have lost money this quarter, but it's still got a fair bit of it. On an adjusted basis, Tesla lost $3.06 per share, missing the consensus estimate of $2.92.
The net loss more than doubled from the same quarter a year ago, and was slightly larger than the first quarter.
The company said it maintained its level of production, producing 5,000 Model 3s in a week multiple times in July.
Tesla chief executive, Elon Musk, has announced the Tesla Model 3, Model S and Model X will soon receive an over-the-air update that will add a "Party & Camper mode" to their infotainment repertoire. It delivered its 200,000th electric auto - including its more expensive Model S and X vehicles - in July, a threshold which means a $7,500 federal subsidy begins to phase out two quarters after that milestone was reached.
Public housing goes smoke-free nationwide
Smoking will not be allowed in or near public housing units starting on Tuesday, due to a newly-implemented rule from the U.S. The ban does not apply to e-cigarettes, snuff and chewing tobacco, although there may be restrictions on those in some areas.
Tesla isn't taking Model 3 reservations anymore, but test drives just started last month.
The rocky results Wednesday will likely encourage Tesla skeptics who have criticized the company as underdelivering on its promise of reshaping the auto industry.
"I'd like to apologize for being impolite on the prior call".
As Clement Thibault, an Investing.com senior analyst, said in an email, "I am certain without Musk, Tesla is worth far less than it is worth today".
Later, Musk suggested that Tesla's future cars will also be polite, revealing that one of the biggest challenges he sees for the autonomous vehicles it's working on is that they will be "easy to bully" by other cars and pedestrians getting in their way, as their programming will prioritize safety.
Today's Tesla earnings call comes at a time where the automaker finds itself at a crossroads of sorts.
Peter Bannon, a former semiconductor architecture engineer at Apple turned leader in Tesla's Autopilot department, spoke during Tesla's quarterly earning call about the new hardware in the company's portfolio, Autopilot v3. Despite the unusual online behavior, Tesla has made $4 billion for Q2, compared to $2.78 billion for the same quarter a year ago.