The vehicle was unveiled in California by CEO Elon Musk who announced that the model will be priced from $35,000 (£24,423) in the US – half the price of the Model S – when it goes on sale in late 2017.

Already 115,000 customers have put down a deposit in just 24 hours

In a statement, the carmaker said: “Model 3 combines real world range, performance, safety and spaciousness into a premium sedan that only Tesla can build. Our most affordable car yet, Model 3 achieves 215 miles of range per charge while starting at only $35,000 before incentives. With a five-star safety rating, Model 3 will also be the safest car in its class.”

Full specifications haven’t been revealed but key details of the new model include a 0-60mph time of less than five seconds plus two boot compartments – at the back and front – as with the Model S. Elon Musk said the model brings more boot capacity than any other petrol car with the same dimensions and added that a 7-foot surfboard will be able to fit inside.

Commenting on the vehicle, IHS Automotive said: “Tesla’s business model includes using customer deposits to help provide the capital necessary to finish vehicle development and get the production car out the door. To that end, the reveal is critical for helping get people in the door for putting those deposits down—though it is unrealistic to expect that this surge of pent-up enthusiasm is indicative of long-term demand.

“Tesla is also in a position of needing to deliver on some timing promises. At time of writing, Tesla has promised production in late 2017. Given its history of missed deadlines, this one needs to be met, to earn the faith of consumers and investors alike.”