After the unexpected success of its electric Model S, Tesla officials announced their plans to enter another market with a new model to be uncovered soon. This new entry will be sized and priced to directly take on BMW's 3 Series. Tesla will be introducing this compact sports sedan for model year 2016, and it is expected to be priced around the $40,000 mark.

The compact sports sedan will follow the fully electric Model X SUV, introduced last year in Detroit with gullwing doors. This super-soccer-mom hauler is supposed to deliver 0-60 performance in less than 5 seconds. In addition, the company claims its rumored plans of building a pickup truck for the U.S would not be realized any time soon. With growing sales throughout the U.S and an expanding network of supercharger stations, Tesla's newest model poses a serious threat to the German favorite.