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.
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.
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.