Tesla speeds to 500,000 target

Tesla expects to sell up to 90,000 electric cars this year, and has brought forward its 500,000-unit annual production target by two years.

Last year the company delivered just 50,000 cars globally. That figure was 14,810 for the first quarter of this year, below its 16,000 target, but the company has predicted 17,000 deliveries in the second quarter and 50,000 from July and December.

Tesla produced 12,851 Model S sedans in quarter one, which met expectations, but its Model X production of 2,659 units fell short. A severe shortage of parts in January and February may have contributed to lower than expected deliveries, although those problems were resolved by the end of the quarter.

Looking forward, the company says it has around 400,000 reservations for the Model 3, which it expects to begin production in late 2017.

Smooth production of the Model 3 will be vital if the company is to meet its target of building 500,000 units the following year, two years earlier than its original target of 2020