The Model 3, which will be somewhat smaller than the company's current offering, the Model S, is expected to launch in 2017.
According to media reports, Model 3 will sell for about $35,000 and will have a range of 200 miles.
Beyond that, not much is known. It is expected that the batteries for the new vehicle will be manufactured at Tesla's planned "Gigafactory." Indicative of how quickly the company is moving, the site of the battery plant has yet to be chosen.
Several western states are said to be vying for it, including California, Nevada and Texas.
Announcement of the new model also comes prior to the launch of the Tesla's offering, the Model X crossover vehicle, which is not set to hit company showrooms until 2015.
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