Tesla is expanding its model lineup with the start of Model Y production.

Tesla announced Wednesday in its fourth-quarter earnings release that it has already begun production of its Model Y small SUV, with deliveries expected to begin by the end of March.

There are currently two models available for order, both with all-wheel drive. The affordable Model Y Long Range starts at $52,990, and the other is the range-topping Model Y Performance, which starts at $60,990.

According to Tesla's website, both models have an EPA-estimated range of 315 miles, up from the 280 miles Tesla announced when it unveiled the Model Y a year ago. Tesla claims that the range increase is due to "continued engineering advances."

An even more affordable Model Y is on the way. The standard range, previously announced to start at $41,200 and have a range of 230 miles, will go into production in early 2021.

The Model Y is currently being assembled at Tesla's factory in Fremont, California. It will eventually be assembled at a plant in Shanghai, China, and at a plant to be built in Berlin, Germany. The German plant is scheduled to begin operations in 2021.

Interestingly, Tesla has also confirmed that the Model S and Model X will have improved range. On a conference call to discuss fourth-quarter results, Tesla CEO Elon Musk said that the Model S and Model X already have increased range, but that the company has not yet updated its "EPA certified numbers."

We remind him that the Model S Long Range is currently rated at 373 miles, so a Tesla with a 400 mile range is within the realm of possibility, something backed up by Musk during the call.

"We're rapidly approaching 400 miles of range for the Model S," he said.