1 April 2016 Last updated at 10:14 BST
Customers have been looking forward to a lower-cost way to buy one of the California-based company's products, while investors hope it will swing the company from loss to profit.
But other more established automakers are launching electric vehicles of their own targeted at the same market.
Read the full story: Tesla unveils 'affordable' electric car
Tesla has unveiled its highly anticipated Model 3 electric car.