Tesla says it has 'largely overcome' Model 3 bottlenecks and insists production is on track

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. 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.