Tesla’s->ke1842 new Model III->ke4892 lineup won’t consist of just one model. Tesla Chief Technology Officer J.B. Straubel announced at the EIA Energy Conference in Washington D.C. that a Model III crossover->ke288 will be available in addition to the sedan.->ke142 The news comes courtesy of The Wall Street Journal, which says the new Model III crossover will be available in 2017 — the same year the sedan debuts.

Tesla has previously confirmed the sedan will start at $35,000, and as Tesla CEO Elon Musk told a conference in New Orleans about a week ago, will have a range of 250 miles, 50 miles more than the company’s original estimate. Straubel and Musk declined to share any additional information about the Model III crossover. Expect it to be a bit more expensive than the sedan but also a more-affordable alternative to the mid-size 2016 Tesla Model X, deliveries of which Musk says will begin in a few months.

The Model III crossover will likely use the same chassis and drivetrain as the sedan, but expect maximum range to take a slight hit due to its taller aerodynamic profile. We already know the sedan will take aim at the BMW 3 Series,->ke290 Mercedes-Benz C-Class->ke1593 and Audi A4,->ke1087 so expect the Model III crossover to be positioned against the X3,->ke255 GLC->ke4968 and Q5.->ke1666

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Why it matters

Straubel says he expects Tesla to be selling 500,000 vehicles a year by 2020, and the Model III crossover will play a big part in helping the company reach that goal. He went on to say that other new models are in the works as well, but would not elaborate. We would expect to see Tesla venture into both full-size->ke4304 and compact->ke140 segments following the Model III’s introduction. We wouldn’t mind seeing a new sports car->ke506 in the mold of the Tesla Roadster->ke1843 either.

Tesla is projected to sell about 55,000 cars by the end of 2015, so it has a lot of work to do if it wants to add 445,000 units to that number within five years. New models will definitely be needed, but better and cheaper battery technology will also be crucial. Both Musk and Straubel expect batteries to get cheaper by as much $100 less per kWh over the next 10 years, or roughly half what they cost now. That’s where Tesla’s Gigafactory 1 comes in — a $5 billion facility near Reno, Nevada where batteries for cars and Tesla’s Powerwall home battery pack will be manufactured.

2017 Tesla Model 3

Read our speculative review of the Model III here.