In an interview with Autoexpress, CEO Elon Musk has confirmed their next model, called Model III will be unveiled in 2016 with a market launch in 2017.
This new entry-level saloon will be roughly 20 per cent smaller than the Model S, going against the upcoming electric BMW 3 Series.
Tesla Motors planned on using the “Model E” designation at first but Ford sued them and they came up with an alternative name.
The Model III will ride on an all-new platform, built under the expertise of engineering chief Chris Porritt who previously worked at Aston Martin.
The lithium-ion battery pack will be good for a range for more than 200 miles and the projected base price in U.S. will be approximately $35,000 USD. That price will be possible thanks to cheaper-to-make lithium-ion batteries from Tesla’s upcoming Gigafactory. In UK the Model III is expected to cost around £30,000.
In addition to a new Model III, Musk also announced the owners of a Lotus Elise-based Roadster will be able to upgrade to a new next-generation battery pack, boosting range from the current 245 miles to around 400 miles.
note: pictured above is the Model S