Tesla Motors has confirmed rumors that a smaller and cheaper electric vehicle is indeed in the works. The Model 3 will be unveiled next year following the launch of the Model X this fall and will roll into garages in 2017.

The new sedan was originally going to be called the Model E, but as Tesla CEO Elon Musk told Auto Express, Ford sued them because they wanted to use that name. At that point, they shifted to the Model 3, or Model III. With it stylized like that, they'll have the Model S, the Model III and the Model X, or "S III X".

Musk thought it was crazy that Ford was trying to kill sex, but I digress.

The Model 3 is expected to be based on a brand new platform instead of a trimmed down version of what's currently found on the Model S. It's said to be the brainchild of Tesla British engineering lead Chris Porritt, a former Aston Martin employee.

Other rumors suggest the car could be up to 20 percent smaller than the Model S. New battery technology will give the car a range of over 200 miles at a very attractive price point: around $35,000. That's far cheaper than even a base model of the Model S. It'll also have unlimited, free access to Tesla's nationwide network of Supercharger electric charging stations just like the Model S.

Tesla's first car, the Roadster, will also be getting an upgrade in the near future. It's outdated battery pack will be replaced with a newer model that'll boost driving range from 245 miles to around 400 miles. Musk said this will allow owners to drive from LA to San Francisco non-stop.