Tesla CEO Elon Musk announced a Gen III electric sedan during the annual Tesla shareholders meeting on Tuesday. Reuters

Tesla Motors' Gen III electric sedan, to be launched at the end of 2016, will be competitively priced around $30,000 to $35,000, CEO Elon Musk announced at the Tesla shareholders meeting Tuesday.

Automotive News reported Musk’s announcement of the Gen III also revealed a few details about the vehicle, which is to be a cheaper alternative to the Model S. Musk has been in the news of late due to his Space X developments and his grand plans for the electric car. An entry-level sedan may not be his most exciting project, but it does lead to plenty of interesting speculation about Tesla.

According to Musk, the Gen III will be priced at around half the cost of the Model S, which starts at $62,400. The Gen III electric sedan will also have a range of at least 200 miles, in line with the Model S’s EPA-certified range of 208 miles based on the car’s 60 kWh battery. Musk did not discuss specifics of the Gen III’s design but did note that the car will resemble the Model S and the Model X SUV, reports Automotive News. Autopilot or self-driving features may be added later to the Gen III.

Musk said the plan is to launch the Gen III toward the end of 2016 and, although the profit margin may be lower on the sedan, the increased sales would offset any additional costs. The demand for Tesla Motors’ Model S remains at 15,000 vehicles in the U.S., and Musk said the company will begin shipping the vehicles to Europe in June and Asia in the fourth quarter of 2013, reports Automotive News.

The competitive price of Tesla’s Gen III would put it in line with the 2013 Nissan Leaf SV, priced at $31,280, and the 2013 Ford Focus Electric, priced at $39,200. Musk’s promised range of 200 miles would be dramatically higher than the Nissan Leaf's, 73 miles per charge, and the Ford Focus Electric's, 76 miles per charge.