The company has said it wants to sell its electric cars at a “substantial discount” to the average car price, which is $22,000 per year, though it has not detailed the discount.
Electric cars are priced much more expensive than gas-powered cars.
In order to compete with the $26,000-$27,000 average price, Tesla plans to sell cars at “substantially lower” levels, said CEO Elon Musk, speaking at the Consumer Electronics Show in Las Vegas.
Tesla, which was founded in 2009, is also reportedly working on an “all-electric” car, a plug-in hybrid that would be available by 2020.
Tesla has said that it will begin making the car available in 2019, but it is unclear when or if that car will be available.
While Tesla has previously said that its electric vehicles will be priced from $35,000 to $40,000, the company has also said that customers will be able to “pre-order” its cars for as little as $35 per month.
Tesla also said in February that it would start selling electric cars in 2018, but the company’s first vehicles are not expected to hit store shelves until 2019.