diff --git a/packages/angular-cli/models/webpack-build-common.ts b/packages/angular-cli/models/webpack-build-common.ts
index 684e573b65b8..c85fbd38ca93 100644
--- a/packages/angular-cli/models/webpack-build-common.ts
+++ b/packages/angular-cli/models/webpack-build-common.ts
@@ -154,7 +154,7 @@ export function getWebpackCommonConfig(
         context: path.resolve(appRoot, appConfig.assets),
         from: { glob: '**/*', dot: true },
         ignore: [ '.gitkeep' ],
-        to: path.resolve(projectRoot, appConfig.outDir, appConfig.assets)
+        to: path.resolve(projectRoot, appConfig.outDir)
       }])
     ],
     node: {
diff --git a/tests/e2e/tests/misc/assets.ts b/tests/e2e/tests/misc/assets.ts
index aed01b53cf26..0d3821809f25 100644
--- a/tests/e2e/tests/misc/assets.ts
+++ b/tests/e2e/tests/misc/assets.ts
@@ -7,7 +7,7 @@ export default function() {
   return writeFile('src/assets/.file', '')
     .then(() => writeFile('src/assets/test.abc', 'hello world'))
     .then(() => ng('build'))
-    .then(() => expectFileToExist('dist/assets/.file'))
-    .then(() => expectFileToMatch('dist/assets/test.abc', 'hello world'))
-    .then(() => expectToFail(() => expectFileToExist('dist/assets/.gitkeep')));
+    .then(() => expectFileToExist('dist/.file'))
+    .then(() => expectFileToMatch('dist/test.abc', 'hello world'))
+    .then(() => expectToFail(() => expectFileToExist('dist/.gitkeep')));
 }