After announcing over the weekend on Twitter that it had produced 7,000 vehicles in a week, Tesla (NASDAQ:TSLA) shared more specifics about its vehicle production in a press release on Monday morning. The company said that it not only achieved its target Model 3 production rate of 5,000 units per week, but was also able to maintain a production rate for the Model S and Model X of nearly 2,000 vehicles during the same week.

In addition to confirming the weekly production rate that it ended the quarter with and its vehicle deliveries for the period, management gave investors some insight into the company's next production-rate target, its timeline for achieving profitability, demand for the Model 3, and more.

Here's what investors should know.

The Model 3's interior, with its 15-inch touchscreen display.

The view from the Model 3. Image source: Tesla.

Deliveries and production

"Q2 production totaled 53,339 vehicles, a 55% increase from Q1, making it the most productive quarter in Tesla history by far," the company said in its press release on Monday morning. The sharp increase in production was driven entirely by the company's important Model 3. Of the 53,339 vehicles Tesla produced during the quarter, 28,578 were the Model 3. The rest -- 24,762 units -- were the Models S and X.

After producing 9,766 Model 3 cars in its first quarter, the big jump in Model 3 production for Q2 marks the first time it has exceeded combined Model S and X production. Furthermore, the significant level of Model 3 production comes less than a year after Tesla delivered its first Model 3 vehicles, highlighting just how rapidly production is increasing.

The higher levels of Model 3 production put Tesla's total deliveries at a record 40,740 units -- up 85% year over year and 36% sequentially. While Tesla's Model 3 deliveries for the quarter were extremely difficult to forecast, Tesla's 22,300 Model S and X deliveries for the period were in line with management's guidance. 

Looking ahead

For investors, another item in Tesla's quarterly update that was just as important as production and delivery numbers was management's commentary on profitability. CEO Elon Musk said at the company's annual shareholder meeting on June 5 that Tesla was on track to be profitable on a GAAP basis in both Q3 and Q4.

Tesla production line

The Tesla assembly line. Image source: author.

Tesla reconfirmed this guidance in its vehicle delivery update, saying it expects both positive GAAP net income and positive cash flow during each of the quarters, "despite negative pressures from a weaker [U.S. dollar] and likely higher tariffs for vehicles imported into China as well as components procured from China."

Tesla says a further boost to its Model 3 production rate will help it achieve this important profitability milestone. Management expects Model 3 production to reach 6,000 units per week in late August.

Tesla also gave investors an update on demand for its vehicles, saying Model 3 reservations at the end of the quarter were 420,000, despite the fact that the company was running about six months behind its initial production schedule and there was very little effort to promote the vehicle in its stores.

Daniel Sparks owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla and Twitter. The Motley Fool has a disclosure policy.