Elon Musk recently touted that his company is working on an electric car model that will even be more affordable than the Tesla Model 3.

The CEO made the statement during the Future Transport Solutions conference in Oslo, where he underlined his intention of bringing cheap green cars to the masses.

The Tesla Model 3 is scheduled to meet its customers at the end of next year, and the hype around it is already peaking. Not only does the car bring features and performance that make it equal to brands from traditional automakers, but it also adds the benefits of an all-electric vehicle. With every charge, the Model 3 gets to roam the streets for 200 miles.

With a starting price of $35,000, the Model 3 already has a long line of preorders to fill. Some estimates point out that the car could even see a price point of $25,000 after tax credits.

If this sounds good, wait until you hear about the next EV model. As the company did not officially brand the new vehicle, we'll just assume that it is called "Model 4" and roll with it.

First things first: the Model 4 will be cheaper than Model 3.

Musk made some declarations worth noting at the Model 3 event that happened at the end of March. He pointed out that Tesla's grand plan has always been to bring affordable electric vehicles to as many people as possible, and explained that the expensive Roadster, Model S and Model X were crafted to help fund a more affordable line of EVs.

"With fourth generation, and smaller cars and what-not, we'll ultimately be in the position where almost anyone will be able to afford the car," Musk noted at the recent Oslo conference.

We should underline that the fourth-generation is a mere concept at the moment, but the myriad of rumors and speculations that Tesla is planning to build a smaller than Model 3 EV seem to catch shape.

The Model 3 was so well-received that the carmaker accelerated its plans to increase its industrial footprint in order to meet the demand. After thoughtful consideration, Tesla chose a location near Sparks, Nevada, for its Gigafactory, a giant battery plant that will provide the lithium-ion batteries required for the company's electric cars.

Check out the full video conference below, with the segment about Model 4 at about the 12:00 mark.