This year Tesla expects to produce between 80,000 and 90,000 Model S and Model X — but they're moving their 500,000 cars/year goal up by two years to 2018. Spurred on by enormous interest in the Tesla Model 3, which is set to start production at the end of 2017, Tesla is doubling down on their capital investments to accelerate overall production — they've projected a 50% increase in their $1.5 billion budget for such expenditures in 2016.

Building the Model S at the Tesla Factory in Fremont, California

Tesla had previously set 2020 as their target year for hitting 500,000 cars/year, so moving the goal posts forward by two years presents an even larger challenge for Tesla, though it does give hope that the vast majority of Model 3 reservation holders will see their car delivered by the end of 2018. So far, Tesla has received roughly 400,000 reservations at $1,000 a pop for the Model 3. The all-electric sedan will be Tesla's most affordable car ever, starting at $35,000 and offering a starting range of 215 miles per charge.

Tesla Motors began building and selling electric cars in 2008, starting with the Lotus Elise-based Tesla Roadster. The Model S, Tesla's first totally original car, started production in 2012. Tesla purchased the former NUMMI factory in Fremont, California. The facility, previously operated by a joint venture of GM and Toyota, produced a peak of 500,000 vehicles. Tesla expects that the factory will be able to reach that capacity for their own cars, and is building an enormous battery production facility named Gigafactory 1 in Nevada, with an expected operational date of 2017 and full capacity operations by 2020.