New revenue figures from Tesla push its shares into overdrive in late US trading despite last week's warning from boss, Elon Musk, that the Silicon Valley automaker would face six months of ''manufacturing hell'' in producing its first Model 3s. Ivor Bennett reports.
Tesla's Model 3 was only launched a week ago. But already the company says it has more than 1800 reservations a day. That was music to the ears of investors, who hope the car will help the company finally turn a profit. Tesla's shares rose 8 percent on the news, despite the company posting record losses. Although it's not burning fuel, it is still burning cash - just shy of 1 billion dollars in the second quarter, with a further 2 billion planned for the second half of the year. SOUNDBITE (English) CITY INDEX, MARKET ANALYST, KEN ODELUGA, SAYING: "Investors aren't necessarily looking at that. They're looking at revenue growth, they're looking at volume growth, its ability to diversify into other types of vehicles and other sorts of applications which will be the key for its eventual profitability. And I think it seems to be on track for that. And that's why you see that rise in the shares." Tesla's revenue more than doubled in the second quarter to 2.79 billion dollars. But CEO Elon Musk still felt the need to reassure investors over production targets. Saying they should have 'zero concern'. It's a bold claim at the best of times. Even more so, only a week after revising reservation estimates down 10 percent. For now, though, investors are still on his side.