Shares of electric-car maker Tesla (NASDAQ:TSLA) increased sharply on Thursday morning, following the company's second-quarter earnings on Wednesday. The stock increased as much as 7.4%, but is up 6.3% at the time of this writing.
Tesla's second-quarter results featured better-than-expected revenue and a narrower-than-expected adjusted loss per share. Analysts' consensus estimates for Tesla's revenue and adjusted loss per share were $2.51 billion and a loss of $1.83, respectively. But Tesla reported second-quarter revenue of $2.79 billion and an adjusted loss per share of $1.33.
The quarter also included an optimistic update on Tesla's Model 3. The company said the important new vehicle is on track with management's previously stated production targets, including a target of achieving a production rate of 5,000 vehicles per week by the end of this year and 10,000 vehicles per week at some point in 2018.
In the quarters ahead, Tesla will need to prove it can increase Model 3 production as fast is it says it can. With 455,000 net reservations for the vehicle, demand won't be an issue.
Tesla also used its shareholder letter and earnings call to turn investor attention toward two upcoming vehicles. Management reminded investors about its approaching semi truck unveiling, and it said it now wants to bring its Model Y to market earlier than its previous timeline for a launch in late 2019 to 2020.