Tesla Wednesday posted a narrower-than-expected second-quarter loss, boosted by revenue that nearly doubled.

The strong revenue was driven by deliveries of its Model S sedans and Model X SUVs, helping to relieve investor concerns that the upcoming Model 3 was eating into these sales.

Here’s how the company did compared to what Wall Street expected:

  • Adjusted loss per share of $1.33 vs. $1.82 expected, according to Thomson Reuters
  • Revenue: $2.79 billion vs. $2.51 billion expected, according to Thomson Reuters

Tesla’s reported a net loss of $336 million, or $2.04 per share, compared to a loss of $293 million, or $2.09 a share, a year ago.

Excluding stock based compensation, Tesla lost $1.33 a share, which was narrower than expected, according to a consensus estimate from Thomson Reuters.

Shares were up nearly 5 percent in after market trading.

The company said production of its Model 3 sedan, which starts at $35,000, was on track to achieve previously announced targets.

Tesla expects positive Model 3 gross margin in the fourth quarter, and is targeting 25 percent margins in 2018.

The company said its deliveries grew 53 percent compared to the same quarter last year, even though overall industry sales of luxury cars remained flat.

The California carmaker expects Model S and X deliveries to increase during the second half of 2017, compared with the first half.

Net gross margins for the automotive business were 27.9 percent and adjusted gross margins were 25 percent.

Investors also may be encouraged that the company didn’t burn through as much cash as it expected.

Tesla anticipated capital expenditures of $2 billion as it ramped up Model 3 production.

However, the company only spent $959 million in the latest quarter. All told the company said capital expenditures tallied $1.5 billion in the first half, helped by the timing of milestone-based payments.

Tesla ended the quarter with a cash balance of slightly over $3 billion.

In early July, the company reported deliveries of just over 22,000 vehicles for the quarter, down from the 25,000 delivered in the previous quarter. The company later said 3,500 vehicles were in transit and would be counted in the third quarter.

On Friday, when it handed over the keys to the first Model 3 sedans to employees, Tesla said reservations for the car had grown to more than 500,000. Since that time, Tesla said it is averaging over 1,800 net Model 3 reservations a day.

Yet, analysts still have concerns over whether Tesla can ramp up production quick enough. There also are worries over whether the Model 3 will eat into sales of its higher-end cars, and if Tesla will be able to fend off eventual competition from experienced competitors.

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