Tesla's higher volume sedan dubbed Model 3 is around two years away and will be priced at around US$35,000, according to postings on Twitter from Tesla boss Elon Musk.

Musk announced on Twitter that the Model 3 is planned to enter production in 2017 alongside ramped up battery production from the company's 'Gigafactory'.

The Model 3 will be the first car to have its batteries supplied from the so-called Gigafactory. This facility, which is being built in Nevada, will produce cells, modules and packs for Tesla's electric vehicles and for the stationary storage market.

Musk Tweeted: “Model 3, our smaller and lower cost sedan will start production in about 2 years. Fully operational Gigafactory needed.”

In another Tweet he said: “$35k price, unveil in March, preorders start then.”

The delayed Model X crossover is expected to commence deliveries at the end of this month.