The Tesla Nevada Gigafactory is expected to produce 35 gigawatt-hours of lithium-ion battery cells a year. However, recent reports suggest that the factory will also take responsibility of producing Tesla Model 3 electric motors and gearbox components. Nevada Governor Brian Sandoval revealed that the $5 billion factory will help Tesla in meeting Model 3 production target. In the process, this move will lead to 550 new jobs.

According to Fortune, Tesla CEO Elon Musk is investing an extra $350 million on the Gigafactory to produce Tesla Model 3 electric motors and this will in turn ease off the pressure a bit from the electric vehicle maker's California's Fremont plant. The automaker has set a goal of producing 500,000 vehicles annually. Sandoval thanked Tesla for "doubling down" on its commitment to the state. Most of the Model 3 electric powertrain will be made in the Gigafactory.

The plant will start making battery cells for the Tesla Model 3 from the second quarter of 2017. The electric motors and the batter cells will then be shipped to Fremont factory where the Model 3 will be produced. However, tech enthusiasts are of the opinion that even moving the electric motor production to the Gigafactory is not sufficient enough for Tesla to meet its Model 3 production targets. This can very well anger those who have already pre-ordered the vehicle and are now eagerly waiting for 2017 to end as the vehicles are expected to be shipped then.

According to Engadget, Tesla managed to deliver only 83,992 vehicles in 2016 and it was the company's most successful year up to now. It will need to produce at least double that figure in 2018 to keep its pre-order customers happy. Tesla is trying to ship about a 100,000 Tesla Model 3 units by the end of 2017. Despite skepticism, the automaker may actually be able to meet its target as Musk has said that the Model 3 is a less complex vehicle and Tesla's popularity made it easier to secure supply chain deals.