In an interview with AutoExpress, CEO Elon Musk revealed that the $35,000 vehicle will be called the Model 3 (with three bars to represent it), after Ford put the kibosh on calling it the Model E.
“We were going to call it model E for a while and then Ford sued us saying it wanted to use the Model E".
Musk has repeatedly targeted 2017 as the release window for a smaller vehicle. He's said it will be the third generation after the original Roadster and Model S, and in the interview claims it will have a range of over 200 miles per charge, probably using batteries built in Tesla's planned Gigafactory.
Musk also told the magazine about a range boost upgrade coming for the original Roadster that will give it a modern battery capable of up to 400 miles on a charge, "which will allow you to drive from LA to San Francisco non-stop."