Tesla's action soars after reaching the production target of 5,000 copies 3 and fired 6,000

Tesla Inc. shares surged Monday after the electric car maker confirmed that it was reaching its goal of producing 5,000 model 3 vehicles a week, and said it was pulling 6,000 a week at the end of the month of August. The electric car maker, who has missed targets in the past because of bottlenecks in production, said it was expecting the production of its mass sedans to reach 6,000 per week by the end of next month.

The company also asserted its prospect of reporting a net profit and having a positive cash flow in the third and fourth quarters. The company has reported net annual losses each year since its IPO in June 2010.

TSLA, + 2.44%

rose 3.3% in the morning trade, but reduced its previous gains by 6.4%. It has exploded 40% in the last three months, but is still down 2.4% in the last 12 months. In comparison, the shares of its rival General Motors Co.

GM, -0.23%

climbed 12% over the past year, while the title of Ford Motor Co.

F, -0.41%

fell 1.5% and the S & P 500 index

SPX, -0.29%

earned 12%.

General Manager Elon Musk had hinted that targets would be met, saying recently that opponents of Tesla would have been wrong, and said in a tweet Over the weekend, 7,000 cars were produced the week last.

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"The last 12 months have been some of the most difficult in the history of Tesla, and we are incredibly proud of the entire Tesla team for reaching the production rate 5,000 copies of the 3 "model, the company said in a statement. "It was not easy, but it was well worth it."

Some analysts have praised the achievement, but remained skeptical that the pace of production could be maintained, considering that a new production line was built in three weeks. Jeremy Acevedo, director of industrial analysis at the automotive information and research company Edmunds, said the production goal was a "victory" for Tesla, but that the real

"The erection of a tent and the multiplication of teams are not necessarily the signs of a company on a sustainable trajectory, but Tesla has proven at least in the short term that the company is in a good position. business is serious about the issue of tranquility. the opponents and at least trying to keep his promises, "said Acevedo.

Eric Ross of Cascend Securities said that reaching 5,000 is "impressive" given the struggles the company has faced. "However, since this has been accomplished in a parking tent with a largely manual labor, we are concerned that this is not a serial number," Ross wrote in a note to customers

. ] Tesla reported producing a total of 6,944 vehicles in the last seven days of the second quarter, of which 5,031 models 3 and a total of 1,913 S and X models. For the second quarter, Tesla produced a total of 53,339 vehicles, up 55% from the first quarter, including 28,578 models 3.

Deliveries totaled 40,740 vehicles, including 18,440 models 3, 10,930 S models and 11,370 X models. There were 11,166 Model 3 vehicles in transit to customers at the end of the second quarter, which will be delivered early in the third quarter.

The net number of model 3 bookings at the end of the second quarter was about 420,000,