Tesla Model 3 will have two versions [REPORT]

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Tesla is all set to take the wraps off its highly-anticipated mass market car Model 3 in March. But now there are reports that the company would show off at least two different versions of Model 3. Sources familiar with the matter told Seth Weintraub of Electrek that the Model 3 would act as a platform for two vehicles: a traditional sedan and a compact SUV.

Is Tesla planning to launch Model Y around the same time?

Back in June 2015, Tesla CTO JB Straubel teased an SUV crossover version of Model 3, fueling speculations that the mass market EV may arrive in two variants. In October, Tesla founder Elon Musk said in a tweet that the Model 3 sibling would be called Model Y. It is still unclear whether the second version of Model 3 would be ready in time for the March event. It is also possible that the EV maker is working on two projects simultaneously to contain leaks.

A Tesla spokesperson rubbished the reports of unveiling two Model 3 variants. Calling Electrek’s report “wrong,” the spokesperson said only one Model 3 would be announced in March. Electrek has learned that the crossover will be a smaller version of the Model X with Falcon Wing doors. It will have a premium pricing over the standard Model 3, just like Tesla priced the Model X $5,000 higher than Model S.

Model 3 may cost less than Chevy Bolt

Electrek also ran a screenshot of Tesla’s recent presentation in Hong Kong that showed two vehicles under wraps. Little is known about the Model 3 or Model Y. The Model 3 will have a base price of $35,000 without federal subsidies. So, its actual cost may go below $30,000 of Chevrolet Bolt. Electrek believes that the standard Model 3 will have two-wheel drive, while the crossover version will boast of All-Wheel Drive (AWD) capabilities to justify its $5,000 premium pricing.

Tesla’s upcoming mass market car is likely to be affected by record low gas prices. However, Elon Musk believes that his company’s vehicles will be least affected, thanks to its high-end specifications and an impressive range.

Tesla shares rose 0.26% to $190.20 in pre-market trading Friday.

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