The Tesla Model E is expected to go on sale in 2016. The car’s manufacturer said that the price of batteries will play a role in the car’s cost. It claims that the contruction of a Gigafactory will help ease the price of batteries, reports AutoCar.
Tesla also said that the car will be 20% smaller than the Model S. However, it won’t be completely made out of aluminum like the Models S. The Model E is expected to be priced to compete against other electric car rivals, such as the Audi A4 and the BMW 3-series, AutoCar notes.
Audi recently released its first plug-in hybrid, the Audi A3 E-Tron, which sells for roughly $20,000 more than the normal A3.
TSLA stock was up slightly as of Tuesday afternoon.