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We Hear: Tesla Model 3 to Spawn Crossover Model

The all-electric Tesla Model 3 is still years away from launching, but an executive says the new entry-level model, which will first debut as a sedan, will also spawn a crossover.

The news comes from Tesla’s chief technical officer JB Straubel, who spoke at a conference in Washington D.C. earlier this week. Straubel reaffirmed that the Model 3 will ride on Tesla’s new third-generation platform and is slated to go on sale in 2017. Tesla claims the new model will help the automaker sell 500,000 units annually by 2020.

As previously reported, the automaker has set a target price of around $35,000 for the Model 3, before any rebates or credits. A sharp cost reduction of Tesla’s battery packs is a huge contributor to the relatively affordable MSRP for the Model 3. Its expected range of around 200 miles is less than the top-spec Model S, but significantly more than the current crop of mainstream EVs.

In the meantime, Tesla is preparing to launch the new Model X crossover by the end of this year. The Model X is essentially based on the Model S sedan and will have unique falcon-style doors. A number of automakers are set to challenge the Model X, including Audi, which will produce an all-electric Q8 crossover by 2018.

Source: The Wall Street Journal