Elon Musk is promising a $25,000 Tesla electric car in about three years.
The Tesla CEO says the company is reviewing improvements in battery designs and manufacturing capabilities that could result in huge price reductions.
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Musk also says the car would drive fully autonomously, but those sensors and equipment tend to be expensive.
Musk also has a history of under-delivering on promises.
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Years ago, he said the Tesla Model 3 would be $35,000, but that price was only available for a short time.
On Tuesday, Musk also announced that Tesla is now taking orders for the new three-motor Model S with “plaid mode.” The car can go zero to 60 in less than 2 seconds. It costs $140,000.
The first batch is set to be delivered by the end of the next year.