Tesla Wednesday posted a narrower-than-expected second-quarter loss, boosted by revenue that nearly doubled.

The strong revenue was driven by deliveries of its Model S sedans and Model X SUVs, helping to relieve investor concerns that the upcoming Model 3 was eating into these sales.

Here's how the company did compared to what Wall Street expected:

• Adjusted loss per share of $1.33 vs. $1.82 expected, according to Thomson Reuters
• Revenue: $2.79 billion vs. $2.51 billion expected, according to Thomson Reuters

Tesla's reported a net loss of $336 million, or $2.04 per share, compared to a loss of $293 million or $2.09 a share a year ago.

Excluding stock based compensation, Tesla lost $1.33 a share, which was narrower than expected, according to a consensus estimate from Thomson Reuters.

Shares were up nearly 3 percent in after market trading.

The company said Model 3 production was on track to achieve previously announced targets.

Tesla expects positive Model 3 gross margin in the fourth quarter, and is targeting 25 percent margins in 2018.

The company said its deliveries grew 53 percent compared to the same quarter last year, even though overall industry sales of luxury cars remained flat.

The California carmaker expects Model S and X deliveries to increase during the second half of 2017, compared with the first half.

Adjusted gross margins for the automotive business were 25 percent.

Tesla finished the quarter with more than $3 billion in cash.

In early July, the company reported deliveries of just over 22,000 vehicles for the quarter, down from the 25,000 delivered in the previous quarter. The company later said 3,500 vehicles were in transit and would be counted in the third quarter.

Reservations for the recently rolled out Model 3 sedan, which starts at $35,000, have grown to more than 500,000, up from the 373,000 the company reported in the spring of 2016, and more than the total sales of any entry level luxury car.

Yet, analysts still have concerns over whether Tesla can ramp up production quick enough. There also are worries over whether the Model 3 will eat into sales of its higher-end cars, and if Tesla will be able to fend off eventual competition from experienced competitors.