Tesla stock surges after successful Model 3 rollout

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In a letter to investors (pdf), Tesla said it expects deliveries of Model S and Model X to increase during the second half of 2017. Tesla may experience some fluctuations in production rates, Elon Musk said, but "people should have zero concerns" about the company's ability to increase production of the new offering. Those were gross numbers, and including cancellations the order book stood at 455,000, but was growing at a net 1,800 a day since the launch.

Tesla Inc. burned through less cash than analysts expected before bringing out its most affordable model yet, as costly investments strain the balance sheet of the electric-car company led by Elon Musk. "And this is version one, and I think this roof's going look really knockout as we just keep iterating".

"Model 3 net reservations have still steadily climbed every month", Tesla said today, "and have even accelerated further in recent weeks".

All-electric vehicle manufacturer and renewable energy company Tesla has more than doubled its quarterly revenue compared previous year.

Tesla also manages to report a wonderful increase in its automotive revenue by a whopping 93% compared to the same quarter a year ago; the searing figures for the automotive revenue is greatly influenced by the 53$ growth in deliveries and, according to the company, "a smaller percentage of vehicles sold with residual value risk that was subject to lease accounting". Even at that rate - which won't be realized for quite some time - it would take nearly an entire year to make enough cars to meet demand. Over 1,800 new Model 3 reservations are being placed each day on average, in fact.

Tesla stock rose 3% in after hours trading Wednesday following the earnings report.

The shares were on pace for their highest close in a month and their highest percentage increase since early April.

Tesla delivered the first 30 Model 3s to owners and claims that it will begin rolling out vehicles with 220 miles of range that start at $35,000.

While Tesla doubles its sales for the quarter, its losses also increased 37% hitting $401 million United States dollars.

At the launch event he stated that Tesla faces "production hell" to manage to meet these targets.

"What we have ahead of us, of course, is an incredibly hard production ramp", Musk said.

Some buy side analysts are also providing their Analysis on Tesla Motors, Inc., where 3 analysts have rated the stock as Strong buy, 3 analysts have given a Buy signal, 9 said it's a HOLD, 5 reported it as Underperform and 1 analysts rated the stock as Sell.

The company said it is set to produce over 500,000 Model 3 vehicles annually.