Tesla Motors to reveal lower-cost Model 3 in March

Tesla Motors plans to reveal its lower-cost Model 3 electric car in March when it start accepting orders for the car.

Tesla CEO Elon Musk tweeted that the car would start at $35,000, or about half the starting price of its current Model S sedan. According to Musk, the Model 3 would go into production in about two years.

"Model 3, our smaller and lower cost sedan, will start production in about 2 years," Musk said on Twitter last week. "Fully operational Gigafactory needed."

Tesla had for some time been referring to 2017 as the year it would debut its electric car with a $35,000 starting price to market. However, according to commentators, it was good for investors to hear Tesla was sticking with its timeline, even with Model X deliveries about to begin.

As of today, the company planned to stick with its timeline for Model 3.

According to commentators this was good, as delaying Model 3 could have much larger implications for the company than what putting off its Model X did. They said Model 3 was Tesla's ticket to much higher volume sales and the company's final step in becoming an automaker even the world's largest car makers would need to reckon with.

According to commentators, taking preorders for the vehicle in March would help Tesla assess the demand for its vehicles at a lower price point.

If Model 3 demand turned out to be anything like it had for Model X, Tesla probably would not need to worry about doing much to solicit interest in the Model 3 ahead of launch.

Even with no advertising and very little information on Tesla's Model X, the company coil boast over 20,000 deposit-backed reservations for the vehicle going into 2015.

Also it needed to be considered that those putting money down for their reservations knew that the Model X would be more expensive than Tesla's pricey Model S.