Sadly, the Model 3 is not coming until 2018

Initial reports suggested that the Tesla Model 3 was expected to be unveiled as early as March 2016 and get a late 2017 launch date, but now it looks like it won't start production until 2018, according to a report by electric-car news site Inside EVs.

The Model 3 will cost $35,000 before government subsidies, making it $40,000 less than the larger Model S, and putting it in line with the BMW's 3 Series.

Tesla is no stranger to production delays. Its Model X crossover was supposed to debut in 2013, but that date was pushed back to late 2015. At the time of publishing this article, Tesla has yet to debut a production version of the Model X.

Considering the Model 3 will be Tesla's first truly mainstream product — the Model S currently starts at $75,000 before government subsidies — the company would be wise not to rush a launch.

Observers say the Model 3 will likely attract new customers, which makes it a kind of a make-or-break car for Tesla.