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Many people camped out overnight in Pasadena, California. Some experts have likened this launch to the early days of Apple product annoucements

'We wanted to show that wasn’t true. The roadster is fast and beautiful and has great performance.'

The Model S and Model X, respective sedan and SUV models for the market, would follow with $80,000 price tags.

It was the revenue from those luxury vehicles, Musk said, that paved the way for the development of Model 3.

That was the final step in the master plan: a mass-market affordable car.

'It was only possible to do that after going through the prior steps,' Musk said. 'But we're here and we're to show that to you tonight.'

The Model 3 is able to boast a lower price tag thanks to cheaper battery packs.

Tesla previously assembled its battery packs with cells made in Japan by Panasonic Corp. But now the companies are joining forces to build a massive $5billion factory in Nevada.

Musk said the Gigafactory, as it has been dubbed, will produce more lithium batteries than all other factories of its kind in the world - combined.

The Model 3 is able to boast a lower price tag thanks to cheaper battery packs being made at a $5billion factory in Nevada dubbed the Gigafactory

Musk revealed that by next year the 3,600 superchargers, the free connectors that charge Tesla car in minutes, will double in number

And, he said, its already operational today, lowering the cost of battery packs for Model 3 by 30 percent.

Tesla is already preparing more charging stations to accompany more of its cars on the road.

And the number of Tesla destination charging stations, found at partner restaurants, hotels, shopping centers and resorts, will quadruple.

'You will be able to go virtually anywhere,' Musk said. 'If there's electricity - you can charge.'

The promise of an affordable electric car from Tesla Motors had hundreds of people lining up to reserve one for a deposit of $1,000.

Long lines, reminiscent of the crowds at Apple stores for early models of the iPhone, were reported from Hong Kong to Austin, Texas, to Washington.

Robin Santucci got the sixth spot in line when he arrived at the Santa Monica, California Tesla store at 3.45am on Thursday. He estimated there were 200 people in line by 9am

Santucci has admired Tesla for years. When he got his current car, an electric Fiat 500, he made sure the lease would run out at the end of 2017 so his next car could be the Model 3.

'The design of every other car they've put out is beautiful.'