Tesla Announces Cheaper, Newer Car Model

The electric car company plans to release the Model 3 in 2017.
4:25 | 07/16/14

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Transcript for Tesla Announces Cheaper, Newer Car Model
Okay. It's Wednesday July 16. Open -- New York -- big number 35000. Dollars that. How much Tesla electric cost but -- the market. Now consider this that is just half the price of -- as popular model S. The pricing will position the new model to compete with the BMW three series. Crowded marketplace at and that's where New York City -- on the story. Is young finance Shibani Joshi -- -- thanks for joining us this Wednesday morning. -- a it and a morning show this news come in the form of a tweet last night tell us about this. Yeah this is it -- we heard around the world -- here -- Tesla fanned out there -- last making it a little bit more. Affordable for a test last stands out there to get their hands. On a brand new make and model this is that the model -- -- and it will come out we believe -- Townsend is sometime in -- when he. Seventeen are -- the model three agency coming on 27 -- price tag as you mentioned 35000 dollars which is. Half of what the current model goes for -- so not -- -- and it certainly but certainly more affordable. Is it more affordable -- is that exactly how about how the companies trying to position itself as they are provider for the masses. Yeah I mean -- is if you have a lot of money that you wanna spend on a car this is not going to be cheap car I mean this is meant to compete against. The BMW three -- back at a certain -- series as well send Mercedes C class and this is meant to be more of a sports a luxury vehicle all. So again this is not meant to compete against four -- and and General Motors vehicles but again the higher and makes and models that are out there. What do we know about the mileage on this thing because that's always the main concern -- -- -- collector car aura hybrid on -- what are the gonna get we're charge. Yet that's exactly again Amy knew what -- gonna gets about 35000 dollars is is certainly what people want to now now we don't know a lot of mean the company just confirming the and they treat that this models going to be out there. Elon Musk has talked very vaguely about what he'd said what we think that the -- is going to look like he said it's gonna be smaller than a current -- class. And it's also gonna have -- lower mileage -- -- distant city can go over current the current model is only goes 306. Or does go 306. Miles without aware that another charge we know it's going to be last that we just don't know all the fine details and I think that's really gonna set this car apart and determine whether or not Texas six astronaut. So we have some pictures of the model S wanna pull those up there take a look at if you're saying and fact right now to test the same. It's going to be a smaller car altogether and that it is a midsize vehicle this model -- and coming with obviously a bitter. At a premium to a midsize car. What about though what is -- -- -- the stock because investors out there are still weighing two options right I mean they're talking about the viability of the company -- itself and that of course there is the electric car industry. As a whole. Yeah it it has a lot of challenges -- -- the company that that car the new makes and models and certainly in the stock price you you're right it is fighting an uphill battle. But this is exactly what -- -- needs to be doing in order to become a little bit more -- streaming news and to some extent it's not an agreement mainstream just yet because it is an electric vehicle. Because it is at a higher price tag it mean when we start to see 20000 dollar car as. Come out then you can consider -- mainstream that this is what the company needs in order to determine. Whether or not it has a long term place in the auto industry is sell more vehicles and make it more attractive to many more consumers. It's it's coming out with an SUV we believe sometime next year so it's got this model last it's -- -- come out with an SUV it's going to come out of the smaller. More affordable version and so what it's trying to do is have something not necessarily for every one. But certainly somebody something for those who won an electric car and who have a little bit more money to throw out at purchasing -- new vehicle. And we shall have to latency of this new cheaper model cheaper being their relatives were there and yes. You know market your body judging from Yahoo! finance -- thank you so much -- -- -- it. And of course -- -- about the latest headlines right here abcnews.com. And you've been much debate number. I'm down perhaps --

This transcript has been automatically generated and may not be 100% accurate.

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