Tesla second-quarter losses were narrower-than-expected after revenue nearly doubled in the second quarter, the company reported Wednesday.
The company reported a loss of $1.33 per adjusted share on revenue of $2.79 billion. Analysts had forecast Tesla lost $1.88 per share and earned $2.51 billion in revenue, according to Bloomberg.
Ahead of the earnings report, analysts expressed concerns about whether Tesla would ramp up production of its Model 3. The company told shareholders it is averaging more than 1,800 Model 3 reservations each day, and expected it could produce just more than 1,500 vehicles in the third quarter. Deliveries to non-Tesla employees would start in the fourth quarter, Tesla said.
The company hopes to a achieve a run rate of 5,000 vehicles per week by the end of 2017 and 10,000 vehicles per week at some point in 2018. Tesla said that it expects to start making positive gross margins on Model 3 starting in Q4 2017, targeting 25% gross margin in 2018.
Tesla burned through $1.16 billion in cash in the second quarter, up from $144 million a year before, but less than expected. The company ended the quarter with a cash balance of slightly over $3 billion.
You can read Tesla’s full letter to investors here.