San Francisco, Sep 23 (IANS): Elon Musk has said that Tesla plans to produce an electric car with a price tag of $25,000 within the next three years.

The aim, said Musk on Battery Day on Tuesday, is to make Tesla electric cars more affordable for the masses.

"That will basically be on-par or slightly better than a comparable gasoline car. This has always been our dream to make an affordable electric car," he said during the virtual presentation.

The cheapest Tesla Model 3 that made its debut in February 2019 currently costs $35,000. it offers a 350-km range, a top speed of 210 km per hour and acceleration from 0-100 km per hour in 5.6 seconds.

"Tesla says has only been made possible by shifting sales to an online-only platform and by winding down physical outlets," reports ZDNet.

Tesla is known for the Model Y, Model S, Model X, and Model 3 product lines.

"For a lot of people, they want to buy a Tesla, but they simply don't have the money. We could make the car infinitely desirable, but if someone does not have the money, they won't buy it," Musk said.

The Tesla CEO also announced the development of a new battery cell and a reduction in cell cost per kilowatt-hour.

The main announcement was Tesla's new larger cylindrical cells. It was claimed the new batteries will provide five times more energy, six times more power and 16 per cent greater driving range.

"But the technology announced is likely to take years to implement. Tesla's approach includes integrating the battery so that it forms part of the structure of the vehicle, thereby reducing the effective weight of the battery," reports the BBC.

Musk also announced that as well as purchasing batteries from Panasonic and LG Chem.