Elon Musk has announced that his electric car maker Tesla will have a new and ‘inexpensive’ model available for sale in 2017, at the price of $35,000. The new Model 3 car will be about 20 percent smaller than the Tesla S model and will feature newer extended life batteries. When compared to the original Tesla Roadster, which debuted at $109,000 when it was for sale, and the Tesla S, which will cost just under $70,000 when it becomes available, the new Model 3 will be a relative bargain. However, prices for both models can be greatly reduced by government incentives, dependent upon location.

A significant part of the price drop on the Model 3 will come from the savings expected from the creation of its new gigafactory. While lithium-ion batteries are not exotic, complicated or big, the new super factory for the rechargeable units promises to be the biggest battery production facility in the world. Bidding for construction of the factory is currently underway in a number of the Southwestern states. This factory will allow Tesla to decrease the costs of purchasing batteries from outside suppliers.

The new battery factory will also be used to offer an upgrade to Tesla’s Roadster lineup. Musk said that the current Roadster battery only good for 245 miles at best before recharging, but that the new energy storage system will give the sporty little coupe a much longer range. “The Roadster had an old generation battery,” Musk said. “We’ll upgrade it to a new generation battery pack and it should have a range of about 400 miles, which will allow you to drive from LA to San Francisco non-stop.”

Musk also said that Tesla expects to sell about 35,000 cars this year, but that having a lower-cost model available will bring in six-figure annual sales by the end of the decade. He’s also planning to install a series of supercharging stations along the length of the UK to spur British sales of his vehicles.