The U-turn came after Tesla reported it burned through less cash than analysts' feared last quarter and stood firm with Musk's projection that profit is around the corner after years of losses.
Just as the flare-up contributed to a smackdown in Tesla's stock in May, Musk's contrite tone this time around contributed to today's real-time rise in prices.
The company said it had repeatedly hit weekly production of about 5,000 Model 3s multiple times during July.
CEO Elon Musk made the bold promise earlier this year that Tesla would post its first quarterly profit in years this fall, Tesla doubled down on that promise again in a letter to investors Wednesday. Tesla said its gross margin on Model 3 cars turned "slightly positive" during the quarter, meaning the company was no longer losing money on every Model 3 it shipped.
The Model 3 is Tesla's first auto that's aimed at a more mass-market audience, and it debuted to great fanfare, with thousands clamoring to put down $1,000 reservations for the vehicle. We believe its because the company has scaled down its level of ambitions for expensive and exotic automation production-aids.
"TSLA is accommodating Model 3 customers who are willing to pay for premium features - making the vehicle more of a luxury item with a smaller addressable market than the mass market auto TSLA had promised".More news: Spy agencies suspect North Korea building new missiles
Skeptics, including hedge funds that held short positions in the company, doubted whether Musk could reach his targets for profitability and Model 3 production, given his tendency to make overly optimistic projections for the company. In celebrating that goal, Musk upped the ante, saying the company would produce 6,000 a week by the end of August. Wall Street was expecting worse.
Tesla has released its second-quarter earnings for 2018, revealing a US$717.5 million ($969 million) loss, but there's a bit to suggest things are looking up in Silicon Valley.
Tesla plans to pay off its upcoming debt - some $1.8 billion comes due before November 2019 - through internally generated cash flow, Musk said.
The company said it produced 53,339 vehicles in the second quarter and delivered 18,449 Model 3s.
Tesla incinerated more than $400 million of greenbacks in the quarter to June.
Tesla reported sales of $4 billion, topping analyst estimates, and an adjusted loss of $3.06 a share, which missed them. Tesla has also asked parts suppliers for refunds.