Tesla said in its latest financial results that it will unveil its new Model 3 on 31 March 2016, with production and deliveries planned for late 2017.
The announcement follows comments from Tesla CEO Elon Musk that the Model 3 will make it affordable to own an electric vehicle.
Speaking to the BBC, Musk said the Model 3 is the third part of Tesla’s strategy – which is aimed at producing a high-volume, low-cost electric car.
“To have a substantial effect on transportation, we have to make the cars affordable,” said Musk.
Unless there is an affordable electric car, they will only have a small impact on the world, he said.