Investing.com – Tesla Inc. (NASDAQ:TSLA) shares traded more than 3% higher in after-hours trade, despite posting a loss per share of 69 cents compared to Wall Street estimates' of a 42 cents loss.
Tesla received a record number of orders for its Model S sedan and Model X sport utility and expects to deliver 47,000 - 50000 Model S and Model X vehicles in the first half of the year, the company said in a letter to shareholders.
Tesla quelled any lingering fears of production delays to the launch of its Model 3 vehicles. The electric car company noted in a letter to shareholders that its Model 3 sedan is on track to begin production in July and expects to ramp production to exceed 5000 Model 3 vehicles per week at "some point in the fourth quarter" of this year and reach 10,000 vehicles per week in 2018.
Tesla’s plan to launch Model 3 Sedan, which is priced at around $35,000, represents a significant opportunity to carve out a larger share of the automotive market, as its cars have traditionally served the luxury niche of the market.
Tesla shares closed at $273.51 down 1.4% but surged more than 3% in after-hours.