Tesla Model 3 Price Starts At $35000, Arrives 2017: Entry Tesla To Rival BMW 3-Series [REPORT]

Previously dubbed the Tesla Model E, the electric car company has announced that its entry-level sedan will be called the Model 3. According to early announcements, the new Tesla Model 3 will be priced starting at $35,000, and will be available on the market by 2017.

The Tesla Model 3 announcement was made during an Auto Express interview with CEO Elon Musk. According to Musk, the initial Tesla Model E name was dropped due to a legal contest from Ford

“We had the model S for sedan and X for crossover SUV, then a friend asked what we were going to call the third car,” Musk told us. “So I said we had the model S and X, we might as well have the E."

“We were going to call it model E for a while and then Ford sued us saying it wanted to use the Model E – I thought this is crazy, Ford’s trying to kill sex! So we’ll have to think of another name. The new model is going to be called Model 3, we’ll have three bars to represent it and it’ll be S III X!”

As the entry-level vehicle, the Tesla Model 3 is expected to be significantly smaller than the current Tesla Model S flagship. Speculators believe that the Model 3 will be a strong rival against the BMW 3-series. What's more, the Model 3 is reportedly up to 20 percent smaller than the Model S, which directly competes against the BMW 5-series.

While specs on the new Tesla Model 3 are extremely limited, reports suggest that the entry-level Tesla will boast a range between 250 to 400 miles, depending on battery options. Currently, the Tesla Model S is offered in 60 kWh and 85 kWh variants. Expect the Tesla Model 3 to follow suit.

Before the Tesla Model 3 arrives in 2017, the Tesla Model X crossover is slated to arrive next year. The Tesla Model X borrows its platform from the Model S sedan, but will come standard with all-wheel-drive and feature unique styling ideas including the radical Falcon Wing doors. Finally, Elon Musk also left an additional hint on what is in store for the future - Tesla is planning a battery upgrade for the discontinued Roadster that should boost maximum range from 245 to 400 miles.