The unveiling of the Model 3 will take place via a live stream event, which you can watch here. It is due to start at 4.30am UK time. Customers around the world have already begun queuing to place orders in such large numbers that Tesla boss Elon Musk has revealed that they have been capped at placing deposits for two cars. Some analysts are suggesting that first-day deposits could total 50,000 cars - an unprecedented level of interest for a new car, especially given the Model 3 is at least 12 months from production.
As Tesla's teaser images have shown, the Model 3 is about three quarters of the size of the current Model S and sits at the bottom of Tesla's range. It joins the Model S saloon and the recently revealed Model X SUV.
Prices for the Model 3 have yet to be set, but in the US it's expected to cost around $35,000, which is equivalent to around £25,000. However, once the cost of bringing the car to the UK has been taken into account, prices are likely to rise to around £35,000.
Few details about the Tesla Model 3 have been revealed, but sources have indicated that performance up to 62mph could eclipse that of the BMW M3, which records a 0-62mph time of 4.1sec. Sources suggest the Model 3 will have a range of up to 300 miles on a single charge.
Initially, it was thought that Tesla's crucial third model would arrive late last year, but Tesla boss Elon Musk has since explained that his firm's Gigafactory - which will produce batteries for all Tesla vehicles - needed to be up and running before the car came out. The Gigafactory is currently being built with partner Panasonic and is due to open in 2017. It's claimed the Gigafactory will revolutionise the way in which batteries are produced for electric vehicles and bring crucial economies of scale for Tesla.