Tesla has confirmed plans to unveil a new electric vehicle in early 2015 that could be sold for around $40,000, according to The Los Angeles Times

Tesla currently offers the Model S EV, which is sold for $60,000 in the U.S. In late 2014, the California automaker will release its highly-anticipated Model X sport-utility vehicle, which will likely sell for the same amount the Model S is offered for.

A third vehicle could make its debut at the 2015 North American International Auto Show in Detroit, according to Tesla.

"This is hugely important for Tesla," said Thilo Koslowski, an auto industry analyst at Gartner, according to AutoBild. "This is ultimately the car that will make Tesla a household brand rather than just something in the premium segments. No car company can live off 20,000 to 30,000 sales a year and be profitable in the long term."

Once introduced, the vehicle will likely be sold by 2016 or 2017.

Most media outlets believe that the automaker will have to make the vehicle with at least a 200-mile driving range and a smaller battery compared to the one offered with the Model S.

"That's pretty ambitious to get there," Koslowski said. "One hundred to 120 miles of range isn't enough for mainstream consumers to really feel comfortable."

A $40,000 vehicle with 200-mile range would be hard for other companies to beat.

Company CEO Elon Musk said that the company's third vehicle will be unlike anything Tesla has ever made.

"The strategy of Tesla is to enter at the high end of the market, where customers are prepared to pay a premium," Musk said in a post called "The Secret Tesla Motors Master Plan (just between you and me)." "Then drive down market as fast as possible to higher unit volume and lower prices with each successive model."

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