Electric vehicle groups have welcomed the news of a new entry level Tesla hatchback to the market.

Experts from LeaseElectricCar.co.uk said Tesla’s smallest and most affordable car so far could convince thousands of motorists to join the electric vehicle revolution.

Dubbed the ‘baby Tesla’, the planned hatchback will be a rival for Volkswagen’s ID3 as well as cheaper EVs from Korean and Chinese manufacturers.

It is expected to go on sale in the UK at a price point around £20,000, making it by far the cheapest Tesla so far.

It is predicted to offer a range of around 250 miles on a single charge, which measures up well against rivals of a similar size.

The new vehicle will be built on a new platform which Tesla have hinted should half the cost of producing EVs.

The introduction of a lower-priced Tesla could play a big role in EV adoption, opening up Tesla ownership to more UK motorists.

The chart-topping American car manufacturer has made the development of a smaller more affordable model its key focus.

With details of the new hatchback being teased on social media in recent days, many industry insiders pinpointed the investor event for this key announcement.

Tim Alcock from LeaseElectricCar.co.uk said any new vehicle launch by Tesla was sure to grab the attention of both drivers who have already converted to electric power and motorists who have so far remained loyal to the combustion engine.

He said: “This new baby Tesla will really shake up the market. The launch of a new, compact entry-level Tesla is great news for electric car buyers.

“For many drivers Tesla is the brand they aspire to own but costs of entry have been high until now.

“We are expecting this new EV to be a compelling option for motorists keen to drive a Tesla but who have so far been put off by the cost.

“By making the brand accessible at a lower price point we feel thousands more drivers will be joining the ranks of the UK’s growing army of Tesla owners. We expect the new EV to be a huge hit for Tesla.”

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