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Tesla hits Model 3 production goals, plans to churn out 6,000 weekly by end of August

Key Points
  • Tesla made 53,339 vehicles in the second quarter, delivering 22,319 Model S and Model X vehicles and 18,449 Model 3 vehicles to customers, totaling 40,768 deliveries.
  • Tesla aims to increase its weekly run-rate for Model 3s to 6,000 by late August.
A Tesla Model 3 car is on display during the Auto China 2018 at China International Exhibition Center on April 25, 2018 in Beijing, China. 
VCG | Getty Images

Tesla said in a second quarter earnings update on Wednesday that it has repeatedly produced 5,000 Model 3 electric sedans in a week. Previously, the company said it would have to hit a weekly run-rate of 5,000 Model 3's to become profitable, long-term.

Tesla made 53,339 vehicles in the second quarter, delivering 22,319 Model S and Model X vehicles and 18,449 Model 3 vehicles to customers, totaling 40,768 deliveries, according to the earnings release.

Tesla said it aims to increase its weekly run-rate for Model 3s to 6,000 by late August while ironing out issues in its factories "selectively" to address bottlenecks, rather than building any additional production lines.

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Tesla is not yet selling the base Model 3 which it promised to sell for $35,000. It has only been selling much more expensive variants thus far, including versions that cost $49,000 and $78,000 to start.

In its update Wednesday, Tesla said Model 3 gross margins "turned slightly positive in Q2," and would rise to roughly 15 percent in the next quarter. The automaker's Model 3 gross margins had been negative in the first quarter.

Tesla's stock was up 4 percent after hours on the report.