Tesla today announced an upcoming $25,000 electric car enabled by its new battery cell and coming within the next three years.

Originally, CEO Elon Musk indicated that Tesla wouldn’t likely make a car for less than $35,000.

His thought process was that with the advent of autonomous ride sharing, electric car fleets would reduce the cost of travel per mile and address the lower end of the transportation market.

However, he changed his tune over the last year and indicated that Tesla would release a cheaper electric car.

Most recently, Musk announced that Tesla would design and build in China a smaller electric hatchback that is expected to be cheaper.

Now Tesla has clarified its plan and officially announced that it will launch a $25,000 electric car.

Musk made the announcement at the end of the Tesla Battery Day presentation:

The CEO commented in the announcement:

Tesla will make a compelling $25,000 electric vehicle that is also fully autonomous.

He made it clear that this new price point is achieved through Tesla’s new battery cell and battery manufacturing effort.

Musk also added that the new $25,000 electric car is going to come to market in about three years, when Tesla has ramped up production of its new battery cell.

Tesla didn’t reveal any other spec on the car, but Musk has previously hinted that it would have more than 200 miles of range.

Check our Tesla Battery News Hub for all the latest news to come out of the event.

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