The Model 3, which starts at $35,000, is the first electric vehicle to be produced in mass quantities in the United States since the mass production of the Tesla Model S in the late 1990s.
The car has already been a hit, and the Model 3 is expected to deliver record sales and make Tesla a household name.
Tesla is also the first carmaker to offer a direct-to-consumer service program to help customers get around.
While the company has said it will sell more than 1 million Model 3s this year, it’s still uncertain how many customers actually purchase the cars.
Tesla will begin selling the Model X SUV this week.
The company also plans to introduce a “Model 3 in a Box” at some point this year.
Tesla has also said it plans to launch a “Tesla X” SUV, a larger version of the Model S SUV, sometime in 2019.
Model 3 sales will likely be a major factor in how Tesla’s stock rises this year or next, though analysts are still debating whether to expect Tesla to make an acquisition to boost the company’s cash flow.
Tesla stock rose by 5.8% on Thursday to $7.30.
Model S shares jumped by 4.9% to $2.92.
The Dow Jones Industrial Average was up 2.4% to 23,051.
The S&P 500 was up 1.3% to 2,988.
Tesla’s shares have gained more than 70% in 2017. Read more: