Tesla reports wider loss than expected, expects to be profitable in the 2nd half of the year as it ramps up Model 3 …

Tesla on Wednesday reported a wider second-quarter loss than analysts had expected but said it expects to be profitable later this year as it ramps up production of its Model 3 sedan.

The company reported an adjusted loss per share of $3.06 (-$2.90 expected), while revenue topped estimates at $4 billion ($3.97 billion forecast).

The results were highly anticipated, following an eventful quarter for the electric-car and solar-panel maker.

Tesla recently pushed back the delivery timelines for new orders of two of three versions of its Model 3 sedan. Investors and analysts have been interested in any updates on the pace of production of the mass-market cars, as well as whether Tesla may need to raise additional capital even after CEO Elon Musk said otherwise.

Tesla said it hit a weekly production rate of 5,000 Model 3s “multiple times” in July and aimed to increase that to 10,000 “as fast as we can.” The electric-car maker said it expected to produce 50,000 to 55,000 Model 3s in the third quarter.

Tesla reported a negative free cash flow of $739 million, smaller than analysts had forecast and less than the $1.05 billion burn in Q1.

“Going forward, we believe Tesla can achieve sustained quarterly profits, absent a severe force majeure or economic downturn, while continuing to grow at a rapid pace,” the company said.

Tesla’s stock fell 3% immediately after the release before rebounding to gain as much as 3.6%. It has fallen 3% this year through the market close on Wednesday.

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