Tesla share price rises as Elon Musk says Model 3 set to hit target

Tesla Inc shares rose 3.5 percent on Wednesday morning after Chief Executive Elon Musk said the car maker was now churning out 500 of its Model 3 sedans a day and should achieve its 5,000 per week target by the end of June.

Tesla`s future profitability hinges on ramping up its affordable sedan but the company has so far failed to meet its weekly target of 5,000 cars due to production bottlenecks.

The production lines have demonstrated the ability to make 3,500 Model 3 vehicles per week, Musk told investors in an annual shareholder meeting on Tuesday.

"The Model 3 ramp is understandably the central focus for investors as the company works to increase production," Baird Equity Research analyst Ben Kallo wrote in a research note.

Of the 27 analysts covering the stock, 9 have a "buy" or higher rating, 10 on "hold" and 8 on "sell" or lower.

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Their median price target is $289. The stock was trading at $301.50 on Wednesday. 

The company has lost about 16 percent of its market value in the past year as investors worried about Tesla`s ability to solve production issues.