While the car won't be delivered until late 2017, fans of the company flocked to its stores to sign up to buy one, with some camping out on sidewalks. Musk said on Thursday that 115,000 people had put down $1,000 deposits to pre-order the Model 3.
Despite the late-night event, social media blew up with images of the new car as soon as it was unveiled.
Watch: Tesla unveils its latest model:
The Model 3 represents a huge moment for the company, which has seen its stock fall in the latter half of last year from $280 down to $240. On Thursday, it closed regular trading near $230.
The new vehicle represents a way for the company to regain some of the momentum it had when its cars were garnering rave reviews. In October, Consumer Reports dinged the Model S for reliability problems, even though the same publication had otherwise issued a glowing review of the vehicle.
If it takes off, Tesla's new car could also accelerate the spread of electric charging stations that would make electric vehicles of all kinds a more realistic alternative. In that respect, the Model 3 could do for electric cars what the iPhone did for smartphones, igniting demand for a whole new class of technology.
