More Affordable Tesla Car To Be Unveiled In March

Reports speculated that the company could also reveal its Model Y next month, but that vehicle will instead be announced at a later date.

(Image credit: Tesla Motors)
(Image credit: Tesla Motors)

Tesla Motors plans to unveil its long-awaited Model 3 sedan next month.

The manufacturer of plug-in electric vehicles will also begin taking pre-orders for the new, cheaper model immediately following its debut, although production of the car isn't scheduled to begin until next year.

Tesla has made more than 50,000 Model S sedans and Model X crossovers to date, but the forthcoming Model 3 will take the company closer to CEO Elon Musk's goal of making electric cars affordable to everyone.

The Model 3 will reportedly start at $35,000, with government incentives taking the price tag below $30,000. The Model S and Model X, meanwhile, cost at least twice as much.

(Image credit: Tesla Motors)(Image credit: Tesla Motors)

The lower-cost car will utilize the lithium-ion batteries made by Tesla's Gigafactory, which is set to open next year in Nevada.

Eventually, the company plans to open new auto plants in China and Europe. Full production of the Model 3 should be in place by 2020.

At that point, Musk expects the company to make 500,000 cars per year and turn a profit for the first time.

Musk characterized the car as "a slightly smaller version of the Model S" without "quite as many bells and whistles."

Reports initially speculated that the company could also reveal its more-affordable crossover — the Model Y — next month, but that vehicle will instead be announced at a later date.

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