Tesla (NASDAQ: TSLA) stock is trading higher on Thursday, up 9.9% a10:51 a.m. EDT. At one point, the electric-car maker's stock was up as much as 11%.
Tesla's gain on Thursday follows the company's second-quarter earnings release after market close on Wednesday. Tesla's less-than-expected cash burn, CEO Elon Musk's apologies for his attitude in a previous earnings call, and big guidance were likely some of the main reasons for the stock's run-up.
Tesla's second-quarter revenue increased about 43% year over year to $4 billion, beating a consensus analyst estimate for revenue of about $3.92 billion. The strong revenue growth was driven primarily by an 85% year-over-year increase in vehicle deliveries.
Tesla's non-GAAP loss per share of $3.06 was wider than a consensus analyst forecast for a loss of $2.92, but it importantly narrowed compared to the automaker's first-quarter loss per share of $3.35. The loss was significantly wider than Tesla's non-GAAP loss per share of $1.33 in the year-ago quarter, due to the automaker's costly Model 3 production ramp-up.
Showing signs that the Model 3 production ramp-up is benefiting from greater scale, Tesla's negative free cash flow improved from negative $1.05 billion in the first quarter of the year to negative $739 million in Q2. This negative free cash flow was better than a consensus forecast for negative free cash flow of about $900 million.
Tesla maintained its guidance for profitability in both Q3 and Q4. Not only does Tesla expect to be profitable on a GAAP basis, but it expects to generate cash flow, increasing its cash position in both quarters.
Tesla also said that after having achieved a Model 3 production rate of around 5,000 units per week a month ago, it's now aiming to produce 6,000 Model 3 vehicles per week by late August.
10 stocks we like better than Tesla
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 4, 2018