Tesla shares jump after cash burn worries abate, Musk apologizes to Street

Tesla Model 3 configurator

Tesla plans to profitably build up to 55,000 Model S cars in third quarter

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.

One thing that stood out and caught investors' attention is the fact that the company's Model 3 auto helped set a new record: a total revenue of United States dollars 4 billion in one quarter.

The net loss of $717.5m (£547.6m) more than doubled that from the same period a year ago, and was slightly larger than the first quarter loss.

In its second-quarter earnings today, Tesla announced losses of $3.06 on $4 billion in revenue. The company probably will use "essentially a loan from the local banks" in China to fund a new factory it's building in Shanghai, he said on the call.

At the time, he called their queries about the company's cash needs and Model 3 orders "so dry" and "not cool". The call triggered a stock sell-off and raised questions about Musk's behaviour.

"There are reasons for it in that I'd gotten no sleep, and been working sort of 110-hour, 120-hour weeks", Musk continued.

To Joseph Spak of RBC Capital Markets-another target of the CEO's temper last quarter-Musk added, "That was not right, and I hope you accept my apologies". He and chief financial officer Deepak Ahuja wrote that they expected Tesla to build as many as 55,000 Model 3s this quarter, which would almost double output from the three months that ended in June.

Founder Elon Musk said that by the end of August, the company will crank up Model 3 production to 6-thousand cars a week, and 10-thousand a week starting next year.

Tesla ended June with about $2.2 billion in cash, the least it's carried since the first quarter of 2016.

For nearly a year, Tesla followers fixated on the company's target to make 5,000 Model 3s in a week. He has run into trouble for snubbing Wall Street analysts to disparaging journalists critical of the company, and also for recently abusing a British caver who helped rescue 12 boys from a flooded Thailand cave. Analysts expected a loss of $2.92 per share on revenue of $3.92 billion.

During the second quarter, Tesla laid off 9 per cent of its workforce as it worked toward Mr Musk's promise of making money.

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