Tesla Inc. (TSLA.O) forecast that it’ll generate cash in the second half of this year as production of Elon Musk’s critical Model 3 gains traction.

The electric-car maker is on track to make 5,000 of the sedans a week in about two months, according to a letter to shareholders Wednesday. Tesla reported quarterly revenue that beat analyst estimates and said it produced the Model 3 at a rate of more than 2,000 units for three straight weeks in April.

Musk first unveiled the Model 3 sedan more than two years ago but has pushed back manufacturing targets several times. The slower rate of output has limited the amount of money coming in from customers taking delivery and tested Tesla’s balance sheet. But prospective customers have showed patience, with deposits rising to US$984.8 million as of the end of March.

Tesla had $2.67 billion in cash on hand at the end of the first quarter, down from the US$3.37 billion at the end of last year. The company reported a loss of US$3.35 a share on revenue of US$3.41 billion, both better than analysts’ average estimates.

The shares gained 1.1 per cent to US$304.50 as of 4:25 p.m. in New York.