Tesla Motors’ forthcoming Model 3 electric vehicle will be offered in both sedan and crossover versions, helping to push the EV maker’s sales toward 500,000 annually by the end of the decade, Chief Technical Officer JB Straubel said on Monday. With the Model 3, Tesla will have long-term viability in terms of success and transform from a high-end player to a high volume automaker.

Tesla Model 3 To Come In Sedan And Crossover

Tesla planning cars “beyond” Model 3

Tesla’s Model 3 will be based on the third-generation platform while the Model S and Model X are based on the current generation technology, which has been in use for a number of years.

The fact that the Model 3 will have a crossover version in addition to a car version suggests that the car will be a “lite” version of the Model S and Model X. Straubel declared that the Model 3’s lithium-ion batteries “will become the chief and most important fuel for light vehicles,” displacing the internal combustion engine. The Tesla Model 3 will launch in 2017 with a price of around $35,000, offering a range of 200 miles, said Straubel.

The Model 3 will surely be facing completion when it launches in 2017, as rivals such as General Motors are expected to come up with similar offerings.

Straubel, speaking at the EIA Energy Conference in Washington D.C., also stated that the company is planning cars “beyond” the Model 3, as the company is expecting expenses for battery technology to fall in the future, enabling them to produce lower-priced electric cars and thus pushing demand.

Much-needed funding

Tesla is planning to launch the Model X crossover to meets its 2015 target. For the long term, the company is spending billions of dollars to stretch its product portfolio, which presently includes the Model S sedan. During last week’s investor’s conference, Tesla CEO Elon Musk confirmed that the company is on target to deliver the first Model X crossovers by the end of this year.

Also, recently the company received additional funding of up to $750 million. The funding provides the much-needed breathing space to the company, which burned around $500 million in cash during the first quarter. On Monday, rating firm Standard & Poor’s noted that cash burn for Tesla “will likely be worse than we had previously expected” and “meaningfully negative” in 2015. The rating firm reiterated its B- corporate credit rating on the EV firm with a stable outlook.

On Monday, Tesla shares closed down 0.12% at $250.38, and year to date, the stock is up by almost 13%.