An article in my newspaper today, written by Dana Hull of mercurynews.com, says that Tesla posted a third-quarter loss of $110.8 million, or $1.05 a share, compared with a loss of $105.6 million or $1 a share during the second quarter. However, the company says that it remains on tract to deliver 3,000 Model S cars in the fourth quarter. Investors cheered the news of the higher production claim and boosted the shares of the company by 8.6% to $31.50 a share. A sidebar says that Tesla has built 350 cars during the third quarter and delivered 250 cars to customers. They expect to deliver 2,500 to 3,000 cars by the end of the year and they expect to deliver more than 20,000 cars in 2013. Current production of Model S sedans is claimed to have increased to 400 cars per week, up from 200 cars per week in October. CEO Elon Musk says that the company has turned the corner and is on track to make a profit next year. He says that the company has 13,200 customers who have reserved a Model S, up from 11,500 at the end of the second quarter. About 20% of the reservations are coming from Europe. From 10 to 15% of reservations holders cancel before their sale is locked in. However one analyst is not so sure that they will become profitable next year and believes that R&D costs will continue to eat into their bottom line. He (Carter Discoll of Capstone Investments) says that the stock is overvalued and that the company is glossing over their deficiencies.