Investors are paying close attention to the results because the electric-car maker’s stock has tumbled 40% this year amid concerns about early sales of Tesla’s new sport utility vehicle, the Model X, and the outlook for its planned mass-market auto, the Model 3, due in 2017.

On the call, however, Musk aimed higher for Model 3 competitors.

All of this is good news for those betting on a bright future for electric cars.

Tesla also said it expects to ship 80,000 to 90,000 Model S and Model X cars in 2016, beating forecasts that the company would only ship about 76,000.

Get out those wallets and make room in your garage: the Tesla Model 3 is coming.

Here’s what we do – and don’t – know about the vehicle.

Speculation aside, Musk has confirmed the Model 3 will be less expensive with a blue-collar price target about 50 percent below Model S, or around $US30,000. Helping drive down the cost, from the Model S is the fact that the 3 will be approximately 20% smaller and some standard features on the S might be optional.

Musk has been quoted as saying 200 miles should be the minimum range for any an all-electric vehicle.

A Tesla representative told Bloomberg that “the $35,000 price tag on the Model 3 doesn’t include the significant federal and state incentives available to electric auto buyers”. The average price of all new cars today is about $34,000, according to Kelley Blue Book. And that’s why the Tesla 3 is being looked at as such an important auto: It’s Tesla’s first attempt at launching a mass market vehicle. After losing 38% of their value so far on the year -closing at $143.67 on Wednesday – Tesla shares jumped in after-hours trading as investors were heartened when Musk assured them that Model X production is on track. “In retrospect, it would have better to do fewer things with the first version of Model X, and then roll in… new technologies over time”, Musk said Wednesday. For example, the “ludicrous mode” that allows the vehicle to go 0 to 60 in only 3 seconds, adds $10,000.