Tesla assures investors Model 3 is on track as cash burn continues

San Francisco

TESLA Inc assured investors its highly anticipated Model 3 sedan is on track to begin production, mitigating concerns that the carmaker led by Elon Musk is burning through more cash to bring the vehicle to market.

The Model 3 remains on schedule for output to start in July, Tesla said on Wednesday as it reported first-quarter earnings results in a letter to shareholders. Excluding some items, Tesla lost US$1.33 a share, a bigger deficit than analysts estimated.

Mr Musk, 45, has flagged plans to spend heavily during the first half of this year to bring out Tesla's most affordable car to date. Keeping the sedan's arrival on course is essential to supporting Tesla's high-flying share price, which vaulted the company's valuation past the much larger and profitable General Motors Co and Fo…