Tesla stock surges as Musk looks to make good with analysts

Tesla is now the king of the mid-range cars

Tesla has burned through $739.5 million in cash as it attempts to ramp up output of its Tesla Model 3 sedan after months of production line woes. "One example is TSLA's reiterating a Model 3 production rate goal of 6,000 units per week by late August, with a more vague time frame to reach production of 10,000 units per week". Analysts have questioned whether the 5,000 rate would be sustainable. But its cash burn extended a money-losing streak for chief Elon Musk during one of the company's most challenging years in history. The company has had to ramp up production of its lower-cost Model 3 auto, even constructing a tent in the parking lot to hit its target of manufacturing 5,000 of the vehicles per week by the end of the quarter. In its quarterly earnings conference call under CEO Elon Musk's full blessing, Tesla employees gave certain details about the company's Autopilot v3 platform which greatly improves performance with no extra cost.

Global tech giant Tesla released its second quarter (Q2) earnings report on Wednesday.

Tesla projected 2018 capital spending of slightly less than $2.5 billion, compared to $3.4 billion past year.

"This is enough to put them in cash flow positive territory on an operating basis", said Ross Gerber, co-founder and CEO of Gerber Kawasaki Wealth and Investment Management, which owns 38,000 Tesla shares.

During the second quarter, Tesla laid off 9 percent of its workforce as it worked toward Musk's promise of making money.

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Elon Musks electric vehicle company Tesla burned through $739.5 million in cash in its second quarter, resulting in a record $717.5 million net loss.

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. A year ago, the goal was to get there in 2018. The stock was down 3.4 per cent through Wednesday's session. It plans to tap the debt market in China to fund a new factory in Shanghai, the company's first outside of the U.S.

The second quarter was significant for Tesla in a few key ways.

Last quarter, Mr Musk mistreated two analysts by calling their queries about the company's cash needs and Model 3 orders "so dry" and "not cool". In the course of the past quarter, Tesla set up a fourth auto production line in a tent-style structure at its vehicle factory in Fremont, Calif., and CNBC reported that Tesla workers were brought in from out of state for a quarter-ending push to build batteries and cars.

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