Tesla Motors released its first quarter earnings report after closing bell tonight, posting adjusted losses of 57 cents per share on $1.6 billion in revenue. Analysts had been expecting adjusted losses of 60 cents per share on $1.6 billion in sales. In last year’s first quarter, the automaker posted 36 cents per share in adjusted losses on $1.1 billion in sales.

Tesla Motors Inc Stock Rises As Losses Not As Bad As Expected

Tesla hits new production record

Tesla Motors Inc (NASDAQ:TSLA) said the non-GAAP gross margin was 21.7%, while the GAAP gross margin was 22%. Automotive revenue was $1.48 billion. The automaker’s GAAP losses were $2.13 per share. Tesla Motors said it produced 15,510 vehicles in the first quarter a 10% sequential increase that set a new record. Of that number, 12,851 were Model S sedans, while the rest were Model X SUVs. It delivered 14,810 vehicles during the quarter.

The company aims to produce about 20,000 vehicles in the second quarter, almost a 30% quarter over quarter increase, and deliver as many of those vehicles as it can during the quarter. It expects to deliver about 17,000 vehicles in the quarter because there is “a large number of vehicles” currently being transported to European and Asian customers.

The automaker also said it now is targeting 500,000 vehicle builds per year in 2018, which is two years earlier than previously planned, because of the immense demand for the Model 3.

Chanos still shorting Tesla

Tesla initially said in early April that it missed its guidance for deliveries in the first quarter and blamed the miss on some of the components for the Model X. The automaker has been having a difficult time ramping production of the SUV because it is such a complex vehicle.

Earlier today, it was reported that Vice President of Product Greg Reichow is taking some time off, but CEO Elon Musk emphasized that they will be able to continue their high-quality manufacturing. Reichow has headed up production at the automaker for the last three years. Also Bloomberg reported earlier today that Vice President of Manufacturing Josh Ensign will also leave.

Short-seller Jim Chanos explained on CNBC today that he’s still shorting Tesla and even drew a comparison with Valeant Pharmaceuticals, stating that a string of executive departures came before more serious issues and that when executives leave in groups, it’s a warning sign.

Tesla Motors Inc (NASDAQ:TSLA) shares climbed by as much as 3.79% to $229.96 in after-hours trades.