Tesla’s Model 3 with its sleek design and high-tech features at an affordable price is the most important electric car yet from the company, but the EV firm plans to come up with something even better — provided all works out as planned.

Next Tesla Motors Inc Car To Be Cheaper Than Model 3: Musk

Fourth-gen EV to be cheaper than Model 3

In a recent transportation conference in Norway, Tesla CEO Elon Musk hinted at a fourth-generation car that will be priced within everyone’s reach. Talking about the Model 3, Musk said he is very excited about producing a car that most people will be able to afford.

“With something like the Model 3, it’s designed such that roughly half the people will be able to afford the car. Then, with fourth generation and smaller cars, we’ll ultimately be in the position where everyone will be able to afford the car.”

Tesla’s current line-up includes four cars, including the recently revealed Model 3. Both the Model S and Model X are lumped together as second generation vehicles, with the Roadster being the first generation. Therefore, the upcoming smaller EV will be the fourth-generation model.

During his talk, Tesla’s visionary CEO discussed a number of things, but the most interesting was his revelation that making affordable electric vehicles had always been at the center of Tesla’s master plan. Musk added that pricey vehicles such as the Roadster, Model S and Model X were essentially created to generate funds to manufacture affordable EVs.

First, Tesla needs to deliver Model 3

Nothing is known about this fourth-gen vehicle, but the only thing that has been heard about is an SUV version of the Model 3, possibly named the Model Y. If it’s true, then it could complete Musk’s ultimate dream Tesla lineup, “S-E-X-Y.” Musk did not share any more details of the fourth-gen vehicle, but we can expect such a car to hit the road in the next 4-7 years.

Before Tesla can even begin working on the mysterious new vehicle, it will have to finish manufacturing and shipping the Model 3. Priced at $35,000, the Model 3 has already received about 400,000 reservations from interested buyers, but it cannot be said for sure whether it will be able to meet the demand within a decent timeframe or not.

On Tuesday, Tesla shares closed up 0.76% at $253.74. Year to date, the stock is up by almost 7%, while in the last year, it is up by over 16%.