Tesla Motors plans to deliver about 90,000 vehicles in 2016 and ramp up to 500,000 in 2018 to reach the later goal two years earlier than previously announced.
Tesla made the announcement in its shareholder letter as part of its first-quarter financials that reported "overwhelming demand" for its more affordable Model 3 EV.
During the quarter, Model S orders increased 45% compared to the first quarter of 2015. Model X production increased to 2,659, an increase from the 507 built in the fourth quarter.
Based on the 325,000 reservations with $1,000 deposits for its Model 3, Tesla estimates potentially $14 million in future sales. Tesla will begin delivering the Model 3 in late 2017. The vehicle is retail for $35,000 and provide 215 miles of range.
In related news, Tesla will also begin offering an upgraded Model S base model with a 75-kWh battery pack, an increase from the 70-kWh model. The California Air Resources Board inadvertantly listed the vehicle on its website, reported Car and Driver.