Tesla Motors has confirmed that the next car the company will produce beyond the impending Model X crossover will be a compact sedan called the Model 3. Elon Musk revealed the info to British motoring magazine Auto Express Wednesday afternoon.
Auto Express says the Model 3 will be 20 percent smaller than the Model S sedan and will ride on a separate platform altogether – not a shortened version of the one which underpins the Model S and Model X. Most importantly, the new model will start at an affordable $35,000, effectively bringing the fight to the BMW 3-Series and other established compact sedans.
Musk noted the car was intended to be called Model E, but Ford attempted to sue them over the nameplate as they wanted to use it for an electric car also. Musk and his team then decided on the Model 3 name because it will be the automaker’s third ever vehicle.