This is not the first time Musk has alluded to the car. In a letter to shareholders, Musk had let on that Tesla intended to show off the design of the Model 3 in early 2016, giving the first ever glimpse of the car, and saying deliveries could be expected a year later by the end  of 2017.

For those wondering why it will take Tesla so long to start production of the low-cost sedan, it is because the company's Gigafactory, a lithium-ion battery manufacturing plant in Nevada, is not yet fully operational.

Before Tesla can produce the Model 3, it needs to have the cheaper battery for the car sorted. The $5 billion worth Gigafactory near Reno, Nevada is believed to have sufficient capacity to decrease the cost of the company's lithium-ion batteries by more than 30 percent. However, the factory is estimated to be completed only by 2017's end.

The impending all-electric Model 3 car from Tesla is supposed to cost half the price of the popular Model S, which starts at $71,000. However, this price point makes the sedan unaffordable for many people.

Musk also posted another tweet stating that the Model 3 will be shown off in March 2016. Around the time, people will also be able to preorder the sedan, which will start at $35,000 (before taxes).