Tesla maintained its delivery guidance for its new Model 3 car despite its chief executive warning about “manufacturing hell” in the coming months, as it comfortably beat expectations with its quarterly results last night.
Shares rose by 5 per cent to $342.03 in after-hours trading on Wall Street as Tesla reported second quarter revenue that more than doubled from a year ago and a narrower loss than expected.
The Model 3 is Tesla’s first mass market car and investors appear to be confident that it will sell well across the world. Motoring and technology journalists were given their first trials of the vehicle last week and reviews on the whole were positive. Elon Musk, chief executive, warned last week that the company would go through at least “six months of manufacturing hell”.
Tesla plans to ramp up production of the Model 3 to more than 500,000 vehicles a year. The company said last night that it had received 1,800 reservations for the Model 3 per day on average since its launch event last week.
Second-quarter losses widened to $336 million compared with $239 million a year earlier as revenue climbed to $2.79 billion, beating forecasts of $2.51 billion.
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Tesla has repeatedly missed production deadlines in the past but it maintained its delivery guidance of 50,000 vehicles for the second half of the year.