Record reservations made for the Model 3 has made Tesla Motors announce a production increase two years earlier than initially scheduled.
The automaker’s target is 500,000 units annually by 2018, a significant number considering that it plans to deliver 80,000 to 90,000 new cars this year.
The Model 3 is expected to account for most of them, but the Model S and Model X are also expected to increase their sales.
“Given the demand for Model 3, we have decided to advance our 500,000 total unit build plan to 2018, two years earlier than previously planned. Increasing production five fold over the next two years will be challenging and will likely require some additional capital, but this is our goal and we will be working hard to achieve it“, as Tesla wrote in its shareholders letter, according to Electrek.
In order to accommodate the accelerated production, Tesla will revise plans at the Gigafactory, where the first battery cells will be built in the fourth quarter of this year. Moreover, the automaker is likely to setup its first plant in China too, as an announcement in the near future is imminent.
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