That put it on track to retake the title of most valuable US automaker from General Motors Co (GM.N).
"We like the more muted tone of the company's outlook, with the absence of unnecessary new stretch goals", said CFRA analyst Efraim Levy. After a struggle Musk blamed in part on relying too much on automation, the carmaker put off capital expenditures toward doubling that rate until it was achieved.
Tesla has been spending heavily as it strives to get the Model 3 - its latest auto - into the hands of customers.
The company delivered 18,449 Model 3s in the second quarter. We believe its because the company has scaled down its level of ambitions for expensive and exotic automation production-aids. "That said, significant progress has been made in the last few months, and GA3 is now expected to reach a production rate of 5,000 per week very soon".
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. Musk also says that Pole Position could be linked to the car's actual steering wheel, which would certainly make for an interesting addition. The stock was down 3.4 per cent through Wednesday's session. That angered some deposit-holders, and analysts questioned whether more would drop out because of delays making the cheaper $35,000 version of the sedan.
Chief executive officer Elon Musk pledged to post net profits in future quarters and on a conference call on Wednesday apologised to two analysts he cut off on the company's first-quarter call.
"Our goal is to be profitable and cashflow positive in every quarter going forward", Musk said in the earnings call, allowing that there may be some quarters in which the company pays back debt, which could interrupt that trend.
Tesla ended the second quarter with $2.78 billion in cash after spending $610 million in capital expenses. Tesla also emerged with United States dollars 2.2 billion in cash and equivalents; this should help Musk in raising funds in the coming quarter. He added that Tesla's expansion plans in China would be financed by "essentially a loan from local banks in China".
Tesla's second-quarter losses of $743 million were lower than analysts' estimates, of about $900 million.