New Tesla car is called Model 3 and has to compete with BMW 3 Series

Tesla has announced that its compact electric car will be called the Model 3. Model 3, previously known as Model E, comes after the already marketed Roadster and Model S, and has to compete with the BMW 3 series.

Tesla CEO Elon Musk has revealed the new name for the upcoming Tesla model to British car site Autoexpress. The Tesla 3 should be on the market in 2016 or 2017. Official photos of the vehicle have not yet been released; the images Autoexpress is showing are mock-ups, based on speculation, Tesla said. The Tesla Model 3 will be an all-new design and not a shrunken version of the current Model S.

The Model 3 will be the fourth model from the American automaker. The Roadster and Model S were previously released, and the SUV Model X will also be released earlier than the Model 3. The Model 3 would cost approximately $35,000, converted to 25,870 euros. That’s about half of the Model S, which retails for nearly $70,000.

The cost reduction would be possible, among other things, thanks to cheaper li-on batteries, which Tesla wants to manufacture itself in its Gigafactory yet to be built. Thanks to the cost reduction, the manufacturer hopes to be able to sell considerably more electric cars and thinks it can compete with the BMW 3-series, among others.

Musk mentions an expected range of approximately 320 km. Also, the buyers of the Tesla 3 could use Tesla’s network of fast chargers for free.