Renowned automotive behemoth Tesla Motors Inc (NASDAQ:TSLA) plans to launch two more cars, amid mounting competition from other companies, like Bayerische Motoren Werke AG (ETR:BMW). According to Elon Musk, the founder, Tesla’s plans to produce a smaller crossover SUV that will rival the BMW X3 are in the pipeline. Musk also revealed that the discontinued Tesla roadster will be succeeded by a new sports car.

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These two models will be launched at the same time in 2016. “We’ll do the X3 equivalent and then a Roadster follow-up in parallel,” he remarked. As noted earlier, the X3 equivalent is the crossover SUV.

The Silicon Valley electric car maker currently has three models under its name. These new cars will add to its stable, and underscore the company’s main goal of enhancing sustainability. The new cars have been echoed to have an improved green technology packages. The same has also been said about a planned entry level Sedan, which will grace the market in 2015, at a price of around $30,000.

While Musk was hesitant to delve into in depth details of the two models set out for 2016, he did mention they were needed to attain the economy of scale required to glean profit.

Musk also disputed rumors that the small crossover would be called Model E. “I was joking when I said ‘Model E’,” he explained. The rumor cropped up after Musk said ‘Model E’ at an open forum that was recently held on Jalopnik, a car culture site. All through, he refused to reveal whether the smaller crossover would feature similar dual-hinged gull-wing doors, like the popular Model X.

The new sports car that is set to succeed the Telsa roadster has attracted a lot of attention. Not only will it fortify Tesla’s already reputable track record as an unquestionable automaker, but it is also expected to increase Tesla’s overall sales. The original Tesla roadster managed to make sales of over 2,300 during its four year run, and this new sports car is expected to trample over the previous numbers.

The launches have been purposely slated for 2016 to allow Tesla Motors Inc (NASDAQ:TSLA) to build on its model line-up. By that time, the company will probably be operating above the break-even point, and will have the opportunity to comfortably close in on more potent markets.

Musk was keen to quell any speculation about the new sport car’s price. “It will have supercar performance, but not supercar pricing,” he noted. Unlike most roadsters, this new sports car will focus more on performance than on price.

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