Tesla says it has 'largely overcome' Model 3 bottlenecks and insists production ...

Tesla is standing by its production targets for the Model 3.

On Wednesday, the firm assured investors that its key new vehicle was on track, and sought to downplay increased wariness over its finances, saying it expected to achieve net profit in both its third and fourth quarters.

Over the last few months, the Model 3 has been caught up in what CEO Elon Musk referred to as 'production hell,' with numerous delays that have forced the firm to adjust its initial goals.

Still, the company - which posted its worst-ever quarterly loss on Wednesday - warned it would shut down production for about 10 days during the second quarter, including its most recent stoppage in April.

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Tesla is standing by its production targets for the Model 3. On Wednesday, the firm assured investors that its key new vehicle was on track, after months of what CEO Elon Musk has called 'production hell' 

Tesla is standing by its production targets for the Model 3. On Wednesday, the firm assured investors that its key new vehicle was on track, after months of what CEO Elon Musk has called 'production hell' 

That temporary shutdown underscores how Tesla's assembly line still needs work to produce its goal of 5,000 Model 3 vehicles per week by the end of June. 

Tesla said its spending had been trimmed and the company would spend less than $3 billion in capital expenditures in 2018, below its 2017 total of $3.4 billion.

'We have largely overcome this bottleneck,' wrote the Silicon Valley-based company in a release, referring to the manufacturing issues that have plagued the Model 3 battery module line at the Nevada Gigafactory.

Tesla said it produced 2,270 Model 3s per week in the last week of April, up from 2,250 in the second week of the month. 

It said the net reservations for the Model 3, including configured orders not yet delivered, exceeded 450,000 at the end of the first quarter.

Tesla built only 2,425 Model 3s in its fourth quarter.

Automotive revenue rose only 1 percent from the prior quarter to $2.74 billion.

Shares of the Palo Alto, California-based company were up nearly 1 percent at $303 in extended trading.

Chief Executive Elon Musk twice last month said Tesla will not need a capital raise in 2018, due to profitability and positive cash flow in the third or fourth quarters.

Tesla reported a loss of $709.6 million, or $4.19 per share, for the first quarter ended March 31, compared with a loss of $330.3 million, or $2.04 per share, a year earlier.

Excluding items, Tesla had a loss of $3.35 per share. Analysts had expected a loss of $3.58 per share, according to Thomson Reuters I/B/E/S.

The company said it ended the quarter with $3.2 billion in cash after spending $655.7 million in quarterly capital expenses.

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